Written by: Yunus Kemp
Ghana is aiming for a 15% reduction in emissions by 2030 and has set an e-mobility agenda in an attempt to achieve this.
This includes a recent bid for a stake in a mining company for newly discovered lithium deposits in the country.
The Minerals Income Investment Fund (MIIF) of Ghana recently announced that it has started negotiations on plans to invest up to $30 million in Atlantic Lithium Ltd, an Australian exploration and mining firm listed on the Australian Stock Exchange (ASX).
Atlantic Lithium has discovered lithium in commercial quantities in Ghana and is on track to become West Africa’s first producing mine, said MIIF.
“The Ewoyaa discovery in the central region has significant amount of lithium spodumene located on the Cape Coast lithium belt.
“MIIF plans to take up an equity stake in the fully funded African focused company which has a 50% off-take agreement from Piedmont Lithium, a US based developer of lithium resources for the Ghana produced lithium.” Piedmont Lithium also has a 50% off-take agreement with Tesla.
According to the National Electric Mobility Roadmap in Ghana, transport sector contributes to 47.7% of the energy-related emissions. Ghana is working to reduce its emissions by about 15% by 2030 through its voluntary Nationally Determined Commitments https://t.co/lpz6aRszJQ pic.twitter.com/vgWfVI10Bb— Africa E-Mobility Alliance (@AfricaEma) April 18, 2023
The continent also holds the key for the world as it transitions towards electric vehicles with its abundant deposits of minerals and metals such as platinum, lithium, cobalt, copper, and graphite.https://t.co/PSA42Iqpnz#ALL #A11 $A11 $ALLIF #Lithium #Ghana #Africa— Atlantic Lithium (@AtlanticLithium) April 25, 2023
Ghana lithium mine represents new dimension to country’s e-mobility sector
MIIF Chief Executive Officer Edward Nana Yaw Koranteng said electric vehicles represent a $7 trillion market opportunity between 2023 and 2030 and $46 trillion between 2023 and 2050.
“This represents opportunities for Ghana which can be leveraged by the current automobile development plan that has seen six car assembly plants already established in Ghana.
“The by-products of lithium such as feldspar also provide a new stratum of opportunity. Feldspar is the main mineral resource needed to produce ceramics and MIIF is positioned to support the development of the use of the feldspar.”
MIIF’s strategy is to not only be active in the lithium value chain but to help develop the capital markets, he said.
“In this vein an initial condition of Atlantic Lithium listing on the Ghana Stock Exchange has been accepted by the company.
“This will give all Ghanaians the chance to acquire shares in the resource. We are excited that Ghana can play in the green energy boom which is crucial for the decarbonisation efforts of the country.”
Transport and energy-related emissions
Ghana’s transport sector contributes to 47.7% of the energy-related emissions in the country, the National Electric Mobility Roadmap in Ghana report points out.
“Ghana is currently at the crossroads of planning and implementing sustainable mass transit solutions to deal with growing congestion, poor air quality, and global warming.
“As a fast-growing economy in sub-Saharan Africa, Ghana’s transport sector contributes to 47.7% of energy-related emissions.
“The Greenhouse Gas (GHG) emissions are projected to reach 74 MtCO2e by 2050 in the Business-As-Usual (BAU) scenario compared to around 43 MtCO2e in 2016.”
The report said the voluntary commitments will “bring down the emissions by around 15% by 2030, but will be unable to stop the upward trend in growth of GHG emissions.”
The e-mobility plan must include infrastructure development like charging stations
The Ghana government has indicated that it intends to reduce the emissions from the transport sector.
This would be accomplished by improving mass public transportation and the “efficiency of vehicles and promoting alternative vehicle technologies, including electric vehicles (EVs).”
Ghana’s e-mobility agenda would have to be delivered through a range of government policies, private sector partnerships, and strategic investments from international development partners.
“This will help address barriers and provide the necessary resources required to accelerate the adoption of EVs.”
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The report further indicates that as of 2021, there were 1,156 EVs registered in the country, representing 0.02% of the total vehicles. There are only 24 public charging stations available in Ghana, limiting the accessibility of electric vehicles to potential buyers.
The report said that by 2030, the goal is to have 350,000 electric vehicles on the road, representing 10% of the total vehicle fleet. It also called for the installation of 1,250 public charging stations across the country to support the growing number of EVs.
But the sector faces challenges, with the most significant barriers being economic and financial.
“The purchase price of EVs is relatively high in Ghana, which is primarily attributed to the high import duties, vehicle tax, undifferentiated HS codes etc.
“Other economic factors, such as battery replacement cost, charging installation cost, and access to credit, are considered disadvantageous to EVs’ acceptance.”
The report urged the Ghana government to provide different financial incentives to create a competitive market for EVs.
“Notably, purchase waivers and subsidies would offer a competitive edge to EVs over ICEVs (internal combustion engine vehicles).”