How are Lithium Miners Reacting to Price Spike?

Lithium producers are exploring output plans as the price of spodumene continues to grow.

As the market demand for lithium increases, major players in mining are looking to capitalise off this growth, but do not want to act too quickly.

Keeping a close eye on market volatility and ongoing trends, lithium miners are considering increasing production.

Prices soar

Some of Australia's biggest lithium miners are preparing to take advantage of a major price rise in the metal, typically used to EV batteries. Mineral Resources Ltd is considering restarting a lithium mine it stopped working on in late 2024. Its main competitor, Liontown Ltd, is in considerations of expanding its mine if the prospects continue to look good.

PLS Group stated a 57% increase in its average realised price to US$1,161 per tonne on a 5.2% spodumene basis. Spodumene is a lithium aluminium inosilicate mineral, which is the leading hard-rock source of lithium for batteries. Prices throughout January have risen exponentially, with no signs of stopping.

The latest figure was US$2,5000 per tonne, up from approximately US$600 per tonne in July 2025. This price surge is indicative of how vital lithium has become to daily operations. 

"A combination of factors are supporting this recovery, including constructive policy settings in China, particularly around energy storage deployment and EV adoption, as well as ongoing uncertainty on the supply side, including the timing and extent of potential restarts of high-cost sources,” explains PLS Managing Director, Dale Henderson.

“Importantly, while we have long held the view that pricing needed to recover from the mid-25 lows, we’re not calling an end to volatility. The market remains sentiment driven, but pricing is continuing to respond sharply to policy signals and supply expectations.”

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Responding to demand

Though Mineral Resources and Liontown also saw growth, both reporting a quarter-on-quarter rise in sales prices and production of spodumene, there are still significant levels of uncertainty. 

“The market is rewriting lithium,” explains Tony Ottaviano, Liontown's Chief Executive Officer.

“We’re not committing to capital until the conditions are right, but we are preparing so that when we move, we can move quickly.”

Liontown is considering expanding its Kathleen Valley operation, whereas Mineral Resources has upgraded production guidance for its Wodgina and Mr Marion projects. Mineral Resources has increased its guidance from  380,000–420,000t to 450,000–490,000t, alongside considering a restart of its Bald Hill mine, which was suspended in 2024.

PLS's Pilgangoora operation has the capacity to produce up to one million tonnes of spodumene. Its 200,000 tonnes-a-year Ngungaju plant was put on a temporary pause in 2024 for 'care and maintenance' due to weak conditions. It has stated that it is considering restarting operations in this plant, with a potential restart available within four months.

By keeping ready to capitalise off growing market conditions, PLS is positioning itself as a strong competitor in the lithium production market. 

Supplier diversification

As lithium demand spikes, particularly as businesses look to diversify supply away from China, these firms are presenting themselves as legitimate alternatives. The global market in 2025 presented the impact of single-supplier reliance, as global disruption became a constant within operations. 

Businesses around the world have understood that the key to supply chain resilience is through supplier diversification, so major mining companies are poised to take advantage of the boost in the market.