Wesfarmers is weighing a major expansion of its lithium operations in Western Australia, with plans to potentially double production capacity at a key mine and expand a nearby refinery. The Australian conglomerate is evaluating whether to proceed with the lithium expansion later this year, according to recent reports. The decision comes as global demand for lithium continues to surge, driven by the electric vehicle boom.

The proposed expansion would significantly increase Wesfarmers' lithium output, potentially positioning the company as a larger player in the critical minerals market. The refinery expansion would complement the increased mining capacity, creating a more integrated supply chain for lithium processing. This move aligns with Wesfarmers' strategy to diversify beyond its traditional retail and industrial businesses.

If approved, the expansion could represent a substantial investment in Western Australia's mining sector and the broader lithium market. The timing of the decision will be crucial, as lithium prices have experienced volatility in recent months amid shifting supply-demand dynamics. Wesfarmers' board is expected to weigh the potential returns against market uncertainties before making a final determination on the project's future.