What is driving the massive Lithium resurgence in 2026

Lithium in 2026

Key Points:

• Lithium’s uptrend marks the start of a new cycle, with substantial upside predicted

• Pilbara Minerals (ASX:PLS) remains a quality pick after a strategic acquisition in Brazil

• Delta Lithium (ASX:DLY) considered undervalued relative to its assets and cash position

• Smaller operators with quality projects and secured offtake merit attention as the sector rerates

In the early stage of a new upcycle

Lithium’s resurgence is gaining momentum, according to Stuart Roberts from Stocks Down Under, who points to a clear five-year boom-bust cycle in the commodity. The current 30% upswing indicates the early stages of a new bull run, with Roberts suggesting that significant upside remains as supply and demand continue to rebalance. He cites Pilbara Minerals (ASX:PLS) as a leader in the space, highlighting its strategic move to acquire a major mine in Brazil during a market downturn as evidence of strong management and future optionality.

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Opportunities at the smaller end of town

Roberts notes that Pilbara Minerals was among the most shorted stocks on the ASX, with recent share price gains suggesting short sellers may turn their attention elsewhere. He identifies opportunities in smaller, well-positioned operators, referencing Delta Lithium (ASX:DLY), whose valuation is seen as attractive given its cash backing and additional investments. Roberts encourages investors to look at second-tier companies with quality assets and secured offtake agreements as the sector rerates alongside the commodity.

Geographically, Roberts sees strong lithium potential in Canada and Argentina due to low power costs and improved investment climates. Despite occasional volatility sparked by players like China, he maintains that the long-term upward revaluation of lithium is now firmly underway.

Check out the full interview below!