Zhejiang Huayou Cobalt, a leading Chinese battery materials company, has agreed to fund Ghana’s first lithium field at Ewoyaa in the Central Region.
In addition, the company is also proposing a $210 takeover of the mines which was established in 2023 after the discovery of lithium in commercial quantities.
This development marks a significant move away from financing structure of the Ewoyaa project, which substantially enhances funding certainty as Atlantic Lithium works toward a final development pathway.
Both companies announced that the agreement would enable Huayou to acquire all of Elevra Lithium’s rights and obligations relating to Ewoyaa and Atlantic Lithium’s broader portfolio for about $70 million, subject to regulatory approvals and other closing conditions.
Elevra, formerly known as Piedmont Lithium, had previously earned rights to a 22.5% interest in the Ewoyaa project under its joint venture agreement with Atlantic Lithium.
The agreement also granted Elevra rights to at least 50% of the spodumene concentrate offtake from the project.
However, relations between Atlantic Lithium and Elevra had increasingly weakened in recent months.
Atlantic Lithium disclosed earlier this year that Elevra had downgraded Ewoyaa within its capital allocation priorities and was seeking changes to the structure of the joint venture.
The company also revealed disagreements over project expenditure contributions, with both sides engaged in discussions and potential arbitration under the project agreement.