Chinese battery materials company Zhejiang Huayou Cobalt has agreed to take over the remaining development funding obligations for Ghana’s Ewoyaa Lithium Project while also pursuing a proposed $210 million acquisition of Atlantic Lithium.
The move represents a major shift in the project’s financing structure and is expected to improve funding certainty as development progresses.
Under the agreement, Huayou will acquire all of Elevra Lithium’s rights, obligations, and interests related to the Ewoyaa project and Atlantic Lithium’s wider portfolio for about $70 million, subject to regulatory approvals and other closing conditions.
Elevra Lithium, formerly Piedmont Lithium, previously held a 22.5% stake in the project under a joint venture arrangement and was also entitled to at least 50% of spodumene concentrate offtake from Ewoyaa.
However, relations between Atlantic Lithium and Elevra had reportedly deteriorated in recent months, including disagreements over project funding and changes in capital priorities.
Huayou’s entry effectively restructures the partnership, with the Chinese firm taking over Elevra’s role, including its financial obligations and offtake rights.
The company has also agreed that key development cost conditions under the original agreement are either met or waived, removing a major hurdle to continued funding and project advancement.
This allows Huayou to assume full responsibility for remaining development costs, replacing Elevra, which had reduced its financial contributions significantly in recent months.
During the final quarter of 2025, Elevra reportedly contributed only around $398,000 toward the project, far below expected funding levels.
The Ewoyaa project has faced financing pressure amid volatile lithium prices, revised feasibility studies, and ongoing community resettlement discussions.
If completed, the transaction could significantly accelerate development of the mine.
Importantly, Huayou’s commitment to fund the project is not dependent on the completion of its broader takeover of Atlantic Lithium, meaning it could still finance Ewoyaa even if the acquisition does not proceed.
Both transactions remain subject to regulatory approvals, including Ghanaian ministerial consent.
If finalized, Huayou could indirectly control up to 87% of the Ewoyaa Lithium Project, while the remaining 13% would be held by the Ghanaian state as a free carried interest under the mining lease agreement.
Source: myjoyonline.com
