Despite a sharp decline in lithium prices throughout 2026, major mining companies are pressing ahead with significant expansion plans. They are betting the price weakness is temporary and that long-term demand from electric vehicles and energy storage will lead to future supply deficits.
Rio Tinto recently began production at two projects in Argentina. The company aims to help meet a global target of 200,000 tonnes of annual production capacity by 2028. Pilbara Minerals approved a A$1.9 billion expansion in Australia. The project is expected to nearly double its production by 2029.
The investments reflect industry confidence that future demand for lithium will far outstrip current supply, justifying large capital expenditures despite the downturn.