Perth, June 25, 2026, 03:04 AWST
- PLS finished up 3.5% at A$5.66 on Wednesday.
- CEO Dale Henderson is supporting Fastmarkets’ planned platform for physical lithium spot trades, which is expected to launch in 2026.
- PLS gave the green light to around A$175 million in early spending for the P2000 project, but full approval is still up in the air and depends on a final investment decision.
PLS Group Limited picked up 3.5% on Wednesday, closing at A$5.66. Shares moved between A$5.29 and A$5.70 for the day. The stock is still down 8.6% over seven days. The lithium producer put out a conference presentation after Tuesday’s close.
PLS highlighted supply reliability as the main issue facing the lithium market, according to Henderson’s June 23 keynote. While the company said demand from electric vehicles and battery storage was getting stronger, PLS said it’s still not clear how new supply will get to buyers.
Benchmark Mineral Intelligence is calling for 2040 lithium carbonate equivalent demand of 4.9 million tonnes, according to the deck. That compares with 3.5 million tonnes of existing and likely supply, so a gap of 1.4 million tonnes. PLS put the long-run real price for SC6 at US$2,465 a tonne, which is twice last year’s estimate. SC6 refers to spodumene concentrate at 6% lithium oxide. “The world needs more supply. Not all of it will arrive,” the group said in the presentation.
Fastmarkets said its new platform will let counterparties make prompt bilateral trades using standard operating terms. Counterparties also keep control of their own commercial terms and can choose their trading partners. PLS’s Henderson said the miner supports “market infrastructure development that improves transparency and operational efficiency in lithium trading.” Liontown, also based in Australia, said it supports the plan and has kept some prompt-delivery tonnage available to support open price-setting. Fastmarkets
Rio Tinto is targeting lithium output of 200,000 tonnes by 2028, the company said at the same event, raising its plans from at least 61,000 tonnes of planned production this year. Jérôme Pécresse, who leads Rio’s aluminium and lithium business, said the company aims to build projects “on time and on budget.” Rio also said its new mines are being set up to be profitable even if lithium prices drop again. Reuters
Pilbara Minerals’ growth story is focused on Pilgangoora in Western Australia. Last week the company signed off on about A$175 million in pre-FID spending for its P2000 expansion, earmarked for engineering and long-lead equipment. PLS says it’s aiming to wrap up feasibility work and get a board decision by the December quarter. If the board signs off, P2000 would boost concentrate output to around 2 million tonnes a year, with first ore expected in mid-2029.
P2000 hasn’t been given the green light yet. PLS says the project will get approval only if the study is positive and the economics stack up. Another drop in lithium prices might hit returns on early spending or hold up construction. Delays could also push first ore past the 2029 goal.
PLS has some downside cover in the market through its contract with Canmax. The two-year deal locks in 150,000 tonnes of spodumene concentrate a year at a US$1,000-a-tonne SC6 floor price, no cap on the upside. PLS also got a US$100 million interest-free prepayment as part of the agreement.
