SYDNEY, July 9, 2026, 07:01 AEST
PLS Group Ltd. dropped Wednesday as a new round of selling hit Australian lithium stocks. Traders tracked news that China’s CATL cleared a major hurdle to restart a battery metals mine. PLS ended at A$4.70, off 3.29%. Core Lithium slid 12.1% and Liontown lost 4.25%. The S&P/ASX 200 was down 0.21% at 8,785.10.
Timing is key here. PLS, which used to be Pilbara Minerals, stands out on the ASX as a straight lithium price play. But now the market is starting to ask if the latest run-up in battery metal prices has already tempted too much supply back onto the market.
At the stated time, the ASX was still in pre-open, meaning brokers could put in orders but no trades were going through. Regular trading starts at 09:59:45 Sydney time. PLS’s last traded price is from the close on July 8.
CATL got the green light for its Jianxiawo lithium mine in Yichun after Reuters said Tuesday it won a safety production permit, ending a suspension that ran almost a year. The mine’s yearly capacity is about 46,000 metric tons of lithium carbonate, or close to 3% of expected global supply in 2025.
Lithium carbonate edged down 0.30% to 164,000 yuan a tonne on July 8, according to Trading Economics. The drop was slight, but follows a strong rally and lands as investors look to new supply coming back online.
PLS posted a 52% jump in March-quarter revenue from the previous period, up to A$567 million. Production came in at 232.4 kilotonnes of spodumene concentrate, and net cash stood at about A$1.5 billion as of March 31. Spodumene concentrate is the lithium-rich ore it sells to chemical converters. Shares dropped, but the company’s own numbers show a stronger base than the share price move.
PLS CEO Dale Henderson told Reuters in April the company is seeing “deepening and broadening demand” and “strong tailwinds for lithium operators.” He mentioned demand growth from energy storage and new electric transport. RBC Capital’s Kaan Peker said March-quarter production and costs were “a clear beat.” Reuters
The stock is now dealing with that demand versus supply question. Blake Halligan of Catapult Wealth wrote this week that rising spodumene prices were bringing on “global supply re-starts and expansions.” He said PLS’s valuation was already pricing in higher levels, with more supply growth likely to squeeze margins. The Bull
The main risk here is to holders. If lithium prices stop falling and PLS manages its costs, this selloff could just be a reset after a strong run. But if CATL pushes tons back onto the market and other players bring capacity back online, PLS’s exposure to lithium prices could start to hurt instead.
The next update from the company is the June-quarter activities report, due out July 30. Management will hold an investor call at 9:00 a.m. AEST that day. Investors are waiting for details on shipment volumes, unit costs and any shift in commentary around supply, demand or growth capex.
