Australian lithium miners plot expansions after price surge

Australian lithium miners plot expansions amid soaring prices

Australian lithium miners are responding to a dramatic surge in spodumene prices. PLS Group reported a 57% increase in average realized prices to $1,161/t on a 5.2% spodumene basis. Prices have climbed as high as $2,500/t in January, up from $600/t in July 2025. Strong Chinese EV policy and energy storage initiatives have reinforced this momentum.

The price rally has prompted producers to reconsider previously idled operations. PLS is evaluating a restart of its 200,000t-a-year Ngungaju plant. Meanwhile, Mineral Resources is reviewing a potential restart of Bald Hill, with guidance upgrades for Wodgina and Mt Marion. These moves could add substantial near-term supply to the lithium market.

Expansion plans reflect long-term lithium demand growth

Producers are also targeting longer-term capacity expansions. Greenbushes recently added 500,000tpa with its CGP3 expansion. Liontown is reviewing a 4Mtpa expansion at Kathleen Valley. PLS is considering a A$1.2 billion Pilgangoora expansion and its Colina project in Brazil. Executives emphasize that these expansions aim to meet sustained EV and energy storage demand.

Supply dynamics and market outlook

The lithium market remains highly responsive to policy signals and sentiment. Short-term volatility persists, but strong offtake interest and price levels above $2,000/t make expansions economically attractive. Analysts and executives expect robust growth in lithium demand to continue driving investment decisions in Australia and globally.

SuperMetalPrice Commentary:

Australian lithium miners are capitalizing on the current price surge, balancing rapid restarts with long-term expansion projects. The combination of high spodumene prices, EV-driven demand, and supportive Chinese policy ensures strong margins and incentivizes strategic capacity growth. SuperMetalPrice anticipates continued investment across both near-term and brownfield expansions, reinforcing Australia’s global lithium leadership.