Atlantic Lithium Limited, an exploration and development company advancing its flagship Ewoyaa Project in Ghana, has cut its workforce, citing delays in ratifying its mining lease and falling lithium prices. 

Since the start of 2023, prices for lithium, a metal crucial for the transition to green energy, have fallen more than 80% in tandem with a drop in electric vehicle sales 

Atlantic announced at its 2024 Annual General Meeting that the job cuts i Ghana aim to prioritise critical activities for advancing the West African country’s first lithium mine. 

"The ratification of the Mining Lease now represents the final regulatory step in the permitting process to enable the company to break ground at Ewoyaa," said CEO Keith Muller as quoted by Citi News. 

"We had expected that the mining lease would have been ratified by now. With elections in Ghana fast approaching, however, political crosswinds have had repercussions on the completion of parliamentary business, which has held up our progress," he added.  

Despite obtaining environmental permits and advancing feasibility studies, the mining lease’s final approval has been stalled by delays in Ghana’s parliamentary processes.  

“Despite lower current prices, we refuse to settle on terms that compromise the best interests of the company’s shareholders,” Muller said.  

Atlantic Lithium remains optimistic about post-election regulatory clarity and the long-term demand for lithium. The firm is progressing technical studies and contract negotiations to prepare for a Final Investment Decision.  

“We continue to receive considerable demand for product from Ewoyaa from potential offtakers and remain confident in securing the funding that Atlantic Lithium requires to sufficiently cover its allocation of development expenditure for the project,” Muller said.