Lithium in 2026: Here is Why The Next Bull Market Is Beginning Now, And 5 ASX Lithium Stocks to Consider!

Lithium in 2026 could be the biggest roller-coaster we’ve seen since the pandemic. Even though battery technology and everything it underpins (i.e. electric vehicles and energy storage) has continued to advance, lithium prices have been subdued for the past few years due to an oversupply in the market. But there are signs 2026 could finally be the year the lithium bear market comes to an end. Even if prices don’t return to all-time highs, we think 2026 will see this commodity go on a similar run to what gold did in 2025. In this article, we outline why and 5 lithium stocks that could be worth considering.

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Lithium in 2026: Where it is headed

Well, onwards and upwards to make a long story short.

But is it different this time?

Well, the investment banks think so. UBS and JP Morgan last month upgraded their spodumene price forecasts significantly, by over 50% for 2026. The former calls for US$1,800/t while the latter for US$2,000/t by the end of 2026.

If this happens, then operating mines that have been monthballed due to a lack of profitability will be bought back online, and those mines that have stayed in operation will be even more profitable. Also, look at the ASX share price surges in many companies, such as Liontown (ASX:LTR).

While the situation in China has been volatile, and has driven short-term pricing fluctuations, the situation is not positive for lithium companies there, but it could be good news for the others if prices rise. In December, China revoked 27 expired permits in its major mining hub (in the Jiangxi province). Yes, none of those are operating mines, they do raise concern about supply as demand continues to rise as these mines could keep prices low.

Demand dynamics are important too. We think investors need to cast aside any thought of thinking litihum is just for EVs, because energy storage systems (including grid scale and data centres) are increasingly important, potentially accounting for about a third of total lithium use. Obviously, EVs will be important, but key to growth will be the rise in lower-cost options that will make vehicles more affordable to the masses.

UBS’ expected total lithium carbonate to be 1.5Mt LCE in 2025. McKinsley, a few years ago, suggested 3M by 2030 which would be doubling in demand in 4 years. It may sound radical, but even if the 1.5Mt LCE figure grew to just 2Mt, it’d still be more than double 2021 figures. We will admit that the market is still in surplus as according to SMM, there was 1.7-1.8Mt of spodumene concentrate mined. But if demand trends continue, a deficit will emerge and get wider and wider.

This is a major opportunity for ASX Lithium Miners – all of them. But we thought we’d highlight 5 particular companies that investors should take a look at in the year ahead.

5 ASX Lithium Stocks to Consider

Liontown (ASX:LTR)

Liontown has kept the good fight, entering production during the bear market and persisting – something not all companies did. Given the journey it made from rags to riches, one could argue it was only about saving face, but it did manage to survive the lithium winter and it is thriving. In its most recent quarterly update, the company produced 87,172dmt and sold 77,474dmt. It made A$468m at a realised price of A$1,067/t or US$700 and held A$420m in cash.

The company is transitioning from open pit mining to underground operations and just signed a new offtake agreement with industrial conglomerate Canmax which covers 150,000wmt per year in 2027 and 2028.

Core Lithium (ASX:CXO)

Core Lithium’s Finniss project in the Northern Territory was mothballed less than a year after it commenced. The company intended to kick-start ever since, but could do little until lithium prices recovered. Finniss has too much potential to be given up on with potential for 2,911ktpa to be produced over 20 years.

The DFS assumed a price of US$986/t, which delivered Pre-Tax IRR of 80%, an NPV of $114m and free cash flows of $158m from $501m revenue. Now, just imagine the returns from a US$1,800/t price! The company claims it is re-start ready and its Restart study has substantially cut costs. There still is not a formal restart date but it won’t be far off if prices surge.

Pilbara Minerals (ASX:PLS)

While CXO and LTR are both companies with relatively new production assets, Pilbara has been established for longer. Its Pilgangoora lithium operation is one of the largest hard-rock litium producers globally and retains a very large resource base of ~446Mt at 1.28% lithium. Pilbara delivered solid production results through FY25, producing ~754,600t of spodumene concentrate, exceeding guidance and up ~4 % on the prior year, with sales of ~760,100t.

Revenue was down 40% due to lithium prices being on average down by the same amount. But it expects to produce ~820,000-870,000/t concentrate in FY26 and expects operating costs to fall materially to A$560-600/t. Now, just imagine if lithium prices grow to forecasted levels (i.e. US$1,800/t).

Vulcan (ASX:VUL)

Vuclan is a European-focused company developing ‘zero-carbon lithium’. The model of its Lionheart project is to extract lithium from geothermal brines and use geothermal power for the processing, with the goal of minimising carbon emissions.

The first phase of Lionheart is to produce 24,000tpa of lithium hydroxide.This may not seem like that much, but it is enough for 500,000 battery electric vehicles every year. 2025 closed out with an FID being made on Phase One of its Project and an A$3.9bn financing package being secured.

Wildcat Resources (ASX:WC8)

Wildcat is not yet in production, but it is the highest capitalised pre-production lithium stock on the ASX. It has the Tabba Tabba project in WA’s Pilbara region. There are two major deposits, one (Chewy) has 6Mt at 0.92% lithium while the other (Tabba Tabba) has 1.2Mt of tantalum at 482ppm. The company is undertaking a DFS and claims to be fully funded through to a final investment decision with $51.2m in cash.