The proposed acquisition of Atlantic Lithium by Chinese battery materials company Zhejiang Huayou Cobalt could result in Ghana's Minerals Income Investment Fund (MIIF) selling its investment at a loss, according to an analysis by JoyNews Research.

Huayou announced plans in May 2026 to acquire Atlantic Lithium in a deal valued at about $210 million. The company also agreed to take over the remaining funding needed to develop the Ewoyaa Lithium Project, Ghana's first major lithium mine. The transaction is expected to reshape the future of the project if it receives the required approvals.

MIIF invested $5 million in Atlantic Lithium in 2024, purchasing about 19.25 million shares and securing a 2.4% stake in the company. The investment also gave the fund a seat on Atlantic Lithium's board, allowing Ghana to have direct representation in decisions related to the project.

However, under Huayou's proposed takeover offer, MIIF would receive about $0.25486 for each share. This is slightly below the average price the fund paid for the shares, which was around $0.2598 each. If the deal goes ahead under the current terms, MIIF could record a loss of approximately $95,000, representing about 1.9% of its original investment.

The impact could be greater when exchange rate movements are considered. Since the Ghana cedi has strengthened against major foreign currencies since MIIF made its investment, the value of the proceeds in cedi terms may be lower than the amount originally invested.

The proposed takeover also raises questions about Ghana's future participation in the Ewoyaa Lithium Project. While the country's 13% free carried interest in the mine is expected to remain protected, it is uncertain whether MIIF will continue to hold any direct ownership or influence in the project after the acquisition is completed.

JoyNews Research reported that it requested comments from MIIF regarding the proposed transaction. Although the fund acknowledged receiving the request, it had not responded at the time the report was published.

The outcome of the proposed acquisition will be closely watched, as it could influence Ghana's long-term strategy for local participation and investment in its growing critical minerals industry.