With Lithium moving ASX Lithium stocks back in reckoning for 2026

ASX lithium stocks have had a phenomenal start to 2026 as recovering lithium prices and higher demand from electric vehicles and large-scale energy storage projects have driven renewed momentum across the sector.

Core Lithium Limited (ASX: CXO)

Core Lithium Limited rose by over 17% in morning trade on 8 January and recently completed the sale of its non-core uranium assets to Elevate Uranium for total consideration of $5 million in cash and shares plus a 1.0% net smelter royalty which allows the company to sharpen its focus on restarting the Finniss Lithium Project.

The Finniss Lithium Operation now has an improved mine plan which reduces Grants pre-production capital by $35 to $45 million.

Grants will commence as an open pit operation before transitioning to underground mining later on and the Grants ore reserve has increased by 33% to 1.53 Mt at 1.42% lithium oxide which lifts contained lithium metal by 44%.
The company ended the September quarter with $35.9 million in cash even before receiving $20.8 million from Tranche 2 of the placement by core shareholders on 10 October 2025.

Pilbara Minerals Limited (ASX: PLS)

Pilbara Minerals Limited has surged by more than 15% over the past week and continues to show strong operational performance as the September quarter delivered a solid financial start to the year.

Production increased to 224.8 kt which represents a 2% quarter-on-quarter increase while sales volumes of 214 kt were achieved at a higher average realised price and quarterly revenue rose by 30% quarter-on-quarter to reach $251 million.

Drilling and optimisation activities at the Colina Project in Brazil are progressing as planned with updated results expected in the June 2026 quarter which supports further geographic diversification beyond Australia and the company ended the quarter with a cash balance of $852 million.

Feasibility studies for the P2000 expansion which has the potential to lift Pilgangoora capacity beyond 2 Mtpa are expected to be completed in FY27 and the company is significantly better positioned than junior peers operating in this space.

Liontown Limited (ASX: LTR)

Liontown Limited has had phenomenal start to 2026 as the share price has risen by over 30% in the past one week and the company recently announced the successful completion of open pit mining at the Kathleen Valley Lithium Operation along with the planned transition to a fully underground mining operation.

The company on 9 December 2025 announced the execution of an offtake agreement with Canmax for the supply of 150,000 wmt per year of spodumene concentrate across 2027 and 2028.

Underground mining ramp up accelerated during the September quarter as ore mined increased by 105% quarter-on-quarter to 225 thousand tonnes while the company had revenue of $68 million.

The company ended the quarter with a cash balance of $420 million and the accelerated underground expansion pathway towards a 1.5 Mtpa run rate by Q3 FY26 and to 2.8 Mtpa from FY27 are key milestones in the company’s growth strategy.

Galan Lithium Limited (ASX: GLN) has surged by 16% over the past one week driven by improving momentum across the lithium sector and the announcement that the nano filtration plant for its Hombre Muerto West Phase 1 project has been fully assembled, tested off site and is now in transit to Argentina.

The company delivered a strong September 2025 quarter which included the successful completion of due diligence by the Clean Elements Fund along with confirmation of a $20 million equity placement.

Phase 1 construction is on schedule with first lithium chloride production expected in the first half of 2026 as commissioning is planned to commence immediately once the plant arrives at site.

Galan Lithium is debt free and has also secured approval under the RIGI incentive regime from the Argentine Government for the Hombre Muerto West project.

(Source: Company Reports)