Chinese battery materials giant Zhejiang Huayou Cobalt has agreed to fund the Ewoyaa Lithium Project in Ghana. The company will also pursue a $210 million takeover of Atlantic Lithium. This agreement significantly boosts funding certainty for the Ewoyaa project.
Huayou will acquire all rights and obligations of Elevra Lithium concerning Ewoyaa. The deal is valued at approximately $70 million. Elevra previously held a 22.5% stake in the Ewoyaa project. Huayou's entry restructures the project partnership. Huayou will now manage Elevra's interests, liabilities, and future offtake agreements. This removes key hurdles for further project funding. Previously, additional funding depended on specific project milestones. Lithium prices have been volatile. An updated feasibility study is also underway. Huayou's agreement waives these conditions. This signals commitment to immediate project funding.
The Ewoyaa mine is a key component of Ghana's strategy to expand its mining sector. Lithium is a vital mineral for electric vehicle batteries. Global demand for lithium is expected to rise. Ghana aims to become a significant player in the global lithium market. The project's development is important for foreign investment. It also promises job creation and export revenue. Atlantic Lithium has faced financing challenges. They also navigated fluctuating lithium prices. The company is also updating its feasibility studies. The agreement with Huayou offers a clear path forward. This could accelerate Ghana's lithium production timeline.
"Huayou has agreed that the 'development costs conditions precedent' under the original project agreement are either satisfied or waived," stated an announcement. This effectively clears a major obstacle. "This will allow Huayou to begin sole funding of the remaining development costs." The announcement detailed that Elevra's financial contributions had slowed. In late 2025, Elevra contributed only about $398,000. This was much lower than expected. The agreement ensures continued funding streams for the Ewoyaa project.
This development could speed up the Ewoyaa mine's construction. Huayou's funding commitment is independent of the Atlantic Lithium takeover success. This means Huayou can back Ewoyaa even if the full acquisition fails. Both deals require regulatory and ministerial approval. Ghanaian authorities must also give non-objection. If both deals close, Huayou could control about 87% of Ewoyaa. The Ghanaian state retains its free carried interest. This reflects a significant foreign investment in Ghana's critical minerals sector.