Ghana's state-owned Minerals Income Investment Fund (MIIF) is in talks with Atlantic Lithium to invest up to $30 million in the company developing a lithium mine in the West African country.
Lithium, a key component in batteries used in electric vehicles, is in high demand and prices have soared, driving interest in projects across Africa.
The MIIF said it plans to take an equity stake in Atlantic Lithium and that the company had agreed to list on the Ghana Stock Exchange. The fund did not disclose what size stake it was considering buying.
Atlantic Lithium said only that "discussions are ongoing", adding that there is no certainty an investment will be made. A spokesperson for the company didn't respond immediately to a request for comment on a potential Ghana stock market listing.
The MIIF manages the royalties from gold mines in Ghana, which is Africa's biggest producer of the precious metal. An investment in Atlantic Lithium would give the fund a foothold in the battery metal sector.
A statement from the fund's chief executive, Edward Nana Yaw Koranteng, said its focus is on development of lithium processing and battery manufacturing to support an electric vehicle (EV) market in the region. (Reporting by Helen Reid Editing by David Goodman)