European lithium refiner Livista Energy said on Monday that it has formed a partnership with African miner CAA Mining to set up a conversion facility in Takoradi, western Ghana for the processing of lithium.

Livista aims to convert spodumene, a mineral with lithium content, produced in Ghana into an intermediary lithium chemical at the facility, which would then be exported to the company's European plant for further refining.

Building local lithium refining capability in Ghana would provide employment opportunities and deliver new sources for the African country's gross domestic product, said Martin Kwaku Ayisi, the chief executive of Minerals Commission Ghana.

Demand for lithium, a key component of electric vehicle batteries, has jumped in recent years as the world transitions towards green energy.

CAA had already been granted a license to mine in the area next to the Ewoyaa Lithium Deposit, currently in development by Atlantic Lithium Ltd .

Livista's European facility is expected to begin production in 2026.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber)