Ghana to set up first lithium refinery in Africa

Ghana is set to develop the first lithium refinery in Africa. The move aims to promote local value addition to lithium resources rather than exporting them in their raw state.

The $500 million lithium refinery project is set to be located in Takoradi within the Western Region of Ghana. A designated 200-acre plot of land within the Takoradi Port City has been allocated for the project construction. The chosen location in Ghana strategically taps into lithium resources from various African nations, including the DR Congo, Sierra Leone, Zimbabwe, Mali, Namibia, and South Africa.

First lithium refinery in Africa

The project which is aligns with Ghana’s Green Minerals Policy, is being spearheaded by a consortium comprising CAA Mining Ltd, Luxembourg-based Livista Energy, and its Ghanaian subsidiary, Livista Ghana Ltd. The consortium plans to launch a social responsibility program to support host communities. Discussions with the Mining Income Investment Fund (MIIF) are also underway to enhance local content participation.

According to Douglas D. Chikohora, CEO of CAA Mining Limited, the refinery is expected to be finalized and operational by 2026, barring any unforeseen setbacks. Discussions have taken place with Ghana Gas Company Limited to facilitate power extension and the establishment of a service pipeline, connecting the refinery to the existing pipeline grid.

Once operational, this refinery will become the third of its kind globally, with the other two located in China and the United States thus serving as a crucial resource for Africa. The commencement of the refinery construction is contingent upon the issuance of a prospecting license to Lithium Resources Ghana Ltd (LRGL), a collaborative venture involving CAA Mining Ltd and local entity Empire Rare Earth and Metal Group Limited. LRGL has committed funds for lithium exploration and drilling programs, pending approval from the Minerals Commission.