Western Australia had only one mine producing lithium last year, but an estimated $500 million of investment means Australia's economic engine room could be home to as many as seven mines by early 2018.

But could the super-charged commodity, as many analysts and industry insiders suggest, be a bubble waiting to burst?

The state's claim to being the world's lithium mining capital were enhanced on Monday when the owners of the Mt Marion mine near Kalgoorlie-Boulder waved off its first shipment of lithium concentrate from the Port of Kwinana.

About 15,000 tonnes is headed for China where it will be used in the production of new-generation batteries, a technology driving huge demand.

The chief economist from the Federal Government's Department of Industry, Innovation and Science, Mark Cully, said lithium looks to have a bright future.

"It's a key source for batteries for iPads and mobile phones," he said.

"[As] there is a bit of an emerging lithium sector in your part of the world, that's a good commodity to punt on for the future, I think."

Mr Cully has warned, however, that future demand for the commodity is still not fully understood.

Lithium is used in new-generation batteries. ( Supplied: Galaxy Resources )

South-west and Goldfields in box seat

Construction started at Mt Marion in September 2015 and the mine is forecast to produce 400,000 tonnes per annum at full capacity.

China's Ganfeng Lithium Company holds a 43.1 per cent stake in Mt Marion, alongside ASX-listed companies Mineral Resources (43.1 per cent) and Neometals (13.8 per cent).

Neometals' managing director Chris Reed said the first shipment comes within 18 months of a final investment decision.

Galaxy Resources waved off the miner's first Chinese shipment at Esperance Port. ( Supplied: Galaxy Resources )

It is the second WA lithium mine in as many months to begin shipping product to China after about 10,000 tonnes from Galaxy Resources' recommissioned Mt Cattlin mine near Ravensthorpe departed Esperance on January 2.

Mt Cattlin operated from 2009 to 2012 and the restart was the brainchild of Perth businessman Michael Fotios, whose ASX-listed General Mining Corporation was acquired by Galaxy in a $217 million takeover last year.

The two Goldfields operations and the Greenbushes mine in the south-west, which has been running since the 1980s and is considered the world's highest-grade lithium mine, boosts the number of producing WA mines to three.

Greenbushes is operated by Talison Lithium, in which China's Tianqi Lithium controls a 51 per cent stake and US-based Albemarle Corporation holds the minority interest.

But the level of investment in the burgeoning lithium sector shows no signs of slowing down.

Galaxy came out of a trading halt this morning, announcing $61 million in commitments to progress its Sal de Vida lithium brine project in Argentina and its James Bay project in Canada.

Closer to home, Tawana Resources is due to complete a feasibility study by the end of March on plans to restart the Bald Hill tantalum mine, 50 kilometres south-east of Kambalda.

The Mark Calderwood-led Tawana is holding discussions with off-take parties and has already stated publicly it could be commissioning the old tantalum processing plant for lithium by October.

Firms manoeuvring for control

Martin Donohue's Kidman Resources is another company racing to get into production at its Mt Holland project near Southern Cross.

Kidman has described its Earl Grey lithium discovery at Mt Holland as "globally significant" and has until August 31 to exercise an option to lease the mothballed Lake Johnston nickel concentrator owned by Poseidon Nickel, in which mining magnate Andrew Forrest holds a 15.94 per cent stake.

A map of the Mt Holland lithium project in the WA Goldfields. ( Supplied: Kidman Resources )

Lake Johnston is just 120 kilometres down the road from Earl Grey, and Kidman has estimated it will cost $8 million to refurbish the plant to process lithium.

Kidman's preliminary studies indicate the Lake Johnston plant is capable of production in the order of 200,000-300,000 tonnes a year of spodumene concentrate at a grade of 6 per cent lithium.

Based on deals done by Galaxy, which has agreed to sell similar grade concentrate from Mt Cattlin this year for $1185 ($US905) per tonne, production from Earl Grey could be worth anything from $237 million to $355 million per year.

The main stumbling block to Kidman's Earl Grey entering production is an upcoming Supreme Court trial with Joe Treacy's Marindi Metals, which claims it has a binding contractual agreement to acquire the lithium rights at Mt Holland.

Kidman has denied any such agreement exists and has launched a "vigorous" defence of its position, calling the action by Marindi "opportunistic".

If mediation is unsuccessful, the matter will go to trial on May 29, with the case hinging on whether an email exchange and telephone call constitutes a binding contract.

North-west looking to enter

The Pilbara is also emerging as a lithium powerhouse with the neighbouring Pilgangoora projects owned by Altura Minerals and Pilbara Minerals.

Altura's managing director James Brown and chief financial officer Paul Mantell are on a global investor roadshow this week, which began in New York on Monday and also takes in Canada and the United Kingdom.

It comes as Altura targets commissioning of its $139.7 million Pilgangoora project in the December 2017 quarter, with first production of spodumene earmarked for early next year.

Altura's biggest shareholder is one of China's biggest battery producers, Shaanxi J and R Optimum Energy, holding a stake worth 19.9 per cent.

They have also signed a five-year offtake agreement to supply a minimum of 100,000 tonnes per annum of spodumene concentrate to China's Lionergy.

Ken Brinsden's Pilbara Minerals appears to be slightly more advanced, having broken ground with the start of construction at its $214 million Pilgangoora project in December.

The project, 120 kilometres south of Port Hedland, has a 36-year mine life and is also targeting early 2018 for its first shipment.