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The phrase "are literally developing" is correct and usable in written English.
It can be used to describe an ongoing process of development that is happening in a real and tangible way.
Example: "The scientists are literally developing a new vaccine that could save millions of lives."
Alternatives: "are truly creating" or "are actually working on".
Exact(1)
Pharmaceutical and biotechnology companies are literally developing hundreds of medicines.
Similar(59)
I was literally developing asthma".
"We're literally developing curriculum around her next year".
"All of this stuff was literally developing in real time as Ralph's disease was developing," Mellman says, "and the disease was ahead, unfortunately".
For instance, the identification of the genetic basis of the semi-dwarf trait (defective gibberellin 20-oxidase) (Spielmeyer et al. 2002) of the green revolutionary rice, IR8 occurred almost 40 years after the revolution of IR8 made, whereas Sub1A rice was literally developed (Neeraja et al. 2007) before the gene identification (Xu et al. 2006) as MABC required several years.
We are literally just starting to develop our wind resource, despite the fact that on average a wind turbine in the UK returns 40% more electricity than the one in Germany.
The strata overlying the salt, because they are literally spread apart, are subject to tension, and fractures (faults) develop.
People are literally homesick.
People are literally dying.
We are literally ON.
They are literally wankers.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com