Wesfarmers has approved a $1.4 billion capital expenditure to double production capacity at its Mount Holland lithium mine in Western Australia.
The move signals a strong conviction in a sustained rebound for lithium prices, reversing the caution that characterized much of the sector's investment cycle over the past two years.
The expansion will be executed in partnership with the company's Chilean joint venture partner.
Crucially, the additional output from Mount Holland will not be processed at Wesfarmers' Covalent refinery.
This separation suggests a strategic decision to keep mining and refining operations distinct, potentially allowing the mine to sell concentrate on the open market or to third-party processors rather than being locked into internal offtake agreements.
The investment comes as major industrial players globally are re-evaluating their exposure to the energy transition supply chain.