Perth, Australia, April 25, 2026, 06:02 (AWST)
PLS Group Limited has started commissioning a lithium processing demonstration plant at its Pilgangoora operation in Western Australia after securing up to A$38.1 million in government funding and an offtake agreement, or future supply deal, with China’s Ningbo Ronbay New Energy Technology. Managing Director and CEO Dale Henderson said the project would test whether PLS can “capture more value” by moving further along the lithium chain. PLS
The timing matters. Australia supplies more than half the world’s spodumene, a hard-rock lithium mineral, but refines only a small portion at home, the Australian Renewable Energy Agency said. ARENA CEO Darren Miller called the project an “important step” in building local low-emissions battery material capability. Australian Renewable Energy Agency
The plant will use electric flash calcination, a high-heat processing step, to make a lithium-enriched intermediate product. Once fully running, it is designed to process about 27,000 tonnes of spodumene concentrate a year into about 3,000 tonnes of lithium phosphate, a material used in lithium-ion batteries for electric vehicles and energy storage.
The trial comes with stronger numbers from PLS’ core mine. The company reported record March-quarter production of 232.4 thousand tonnes, a 61% rise in realised spodumene pricing to US$1,867 a tonne, revenue of A$567 million and a cash balance of A$1.455 billion; it also reaffirmed FY26 guidance.
PLS shares last traded at A$5.77 at 16:40 on April 24, up 1.58% on the day, with a market value shown at about A$18.6 billion. The price data were marked as delayed and indicative.
RBC Capital Markets analyst Kaan Peker called the quarterly result a “clear beat,” Stockhead reported. The sector context was uneven: PLS’ update contrasted with pressure on IGO after a Greenbushes guidance downgrade, with Peker calling that cut a “meaningful downgrade” to volume and margin. Stockhead
PLS also moved on funding. A day earlier it closed a US$600 million issue of 6.875% senior unsecured notes due 2031, bond debt not backed by specific collateral. Part of the proceeds was used to repay A$375 million drawn on its revolving credit facility, which was cut to A$500 million from A$1 billion.
But the new plant is still a validation project, not proof of a full commercial business. Calix, which remains the technology partner after PLS took full ownership, said PLS will carry operating losses during commissioning and operations; the wider case depends on plant data, product acceptance and lithium market conditions.
