Chinese giant Huayou seeks control of Ewoyaa lithium project in $210 million Atlantic Lithium deal

Chinese battery materials giant Zhejiang Huayou Cobalt is seeking to acquire Atlantic Lithium in a proposed $210 million transaction that could significantly transform the future of the Ewoyaa Lithium Project in Ghana.

In a statement released in the early hours of May 7, 2026, Atlantic Lithium’s board of directors confirmed that Huayou Cobalt had formally submitted an acquisition offer, marking another major expansion by the Chinese company into Africa’s rapidly growing critical minerals industry.

The proposed takeover highlights increasing global competition for lithium resources as demand continues to surge due to the growth of electric vehicles, renewable energy systems, and battery storage technologies worldwide.

Huayou Cobalt is already a major player in Africa’s lithium sector following its acquisition of the Arcadia Lithium Project in Zimbabwe for approximately $422 million in 2022. Reports indicate that trial production of lithium sulphate at the Zimbabwean project began earlier in 2026, strengthening the company’s position in the global battery supply chain.

According to Atlantic Lithium Chief Executive Officer, Keith Muller, the acquisition proposal comes at a challenging period for the company as it grapples with fluctuating global lithium prices, financing constraints, and operational risks surrounding the development of the Ewoyaa project.

“The proposal offers an attractive proposition for Atlantic Lithium shareholders, particularly when considered amid ongoing lithium price volatility, complex jurisdictional challenges and against the timing and execution risks attached to financing, developing and operating the Ewoyaa Lithium Project under the Project’s current joint venture arrangements,” Mr Muller stated.

His comments suggest the company has been facing increasing pressure related to project financing and regulatory uncertainty while attempting to move the Ewoyaa mine toward full development.

Atlantic Lithium’s Ghanaian subsidiary, Barari DV Ghana Limited, only recently secured parliamentary ratification for the Ewoyaa mining lease after nearly three years of delays, negotiations, and political debate over the fiscal structure and revenue terms of the agreement.

The company is currently updating its Definitive Feasibility Study, which is considered a critical requirement for attracting financing and commencing mine construction and commercial operations.

Industry analysts believe Huayou’s financial strength and operational experience could significantly improve the project’s funding prospects and accelerate its development timeline if the transaction receives approval.

The deal could also deepen China’s growing influence in Africa’s strategic minerals sector, particularly in lithium, a resource widely regarded as essential for the future of electric vehicle manufacturing and global clean energy transitions.

The proposed acquisition is expected to be finalized by December 2026, subject to approvals from shareholders, courts, and regulatory authorities.