Several companies, including one of the world's largest lithium companies, are planning to expand their operations in Western Australia's South West region due to the bright future projections for the lithium industry.

Albemarle, a US-based lithium company, has announced plans to construct two additional processing units at its Kemerton site in Western Australia to extract the valuable metal used in battery production.

Albemarle's WA lithium refinery, north of Bunbury.

The expansion plan of Albemarle's Kemerton site in Western Australia would increase the production of lithium hydroxide to 100,000 tonnes per year, enabling the support of 2.4 million electric vehicles annually. This would be a doubling of the current production capacity.

Despite being scaled back from the original plan, the Kemerton plant in Western Australia started operating a year ago.

 Albemarle's CEO, Kent Masters, expressed confidence in future demand for lithium and announced the expansion of the site. Other lithium projects in Western Australia, such as Greenbushes and Mt Holland, are also undergoing expansion, and Pilbara Minerals has decided to increase production at its Pilgangoora Project.

According to resources analyst Tim Treadgold, the demand for lithium has been increasing due to the energy transition from fossil fuels to renewable energy sources. 

While lithium prices had fallen recently, the tide has turned and many companies are getting into lithium. Treadgold believes there is a bright long-term future for lithium, driven by government initiatives to reduce fossil fuel use and promote battery use.

Albemarle's expansion project in Western Australia is set to begin construction immediately, with the first product expected to be produced in 2026. 

The project is anticipated to create around 1,000 construction jobs. The company is also planning to set up workers' accommodation in Australind and is considering building a workers' camp in Binningup, despite community opposition. Shire of Harvey President Paul Gillett expressed enthusiasm for the expansion, stating that the region is ready to take on a larger role in battery production.