Australia's fast growing lithium sector has received a major endorsement, with one of the world's biggest producers vowing to accelerate its Australian projects at the expense of its Chilean expansion options.

Albemarle Corporation said its plan to build a $400 million processing plant near the Western Australian city of Bunbury would be accelerated by 50 per cent, with the first stage of the plant set to produce "at least" 60,000 tonnes of lithium hydroxide per year, rather than the 40,000 tonnes initially planned.