PLS advances mid-stream push, posts record production
PLS Group (ASX: PLS) has commenced commissioning of its mid-stream demonstration plant at the Pilgangoora operation in WA. Commissioning follows completion of an ownership restructure that gives PLS full ownership and operational control of the plant, alongside up to $38.1m in ARENA grant funding and a lithium phosphate offtake agreement with Ningbo Ronbay New Energy Technology. First product is expected in Q3 CY26. Designed to process about 27,000t of spodumene concentrate annually into about 3000t of lithium phosphate, the demonstration plant is intended to test lower-emissions processing technology and assess future commercial pathways beyond just spodumene concentrate production. PLS managing director and chief executive Dale Henderson says global battery supply chains are still taking shape in this high-growth market, and over time the most competitive and technologically viable pathways will determine where long-term value is captured. “The mid-stream demonstration plant is a deliberate step by PLS to test whether more value can be captured at the resource by moving further along the lithium value chain,” he said. “We acknowledge the Government’s continued support through ARENA grant funding, which reflects the potential of this project to deliver lower-emissions processing and increased onshore value-add in critical minerals. Together with our offtake relationship with leading LFP cathode producer Ronbay, this provides a strong foundation as we move into commissioning. “This is a disciplined validation and optimisation phase. If the technology performs and the product is accepted by the market, it creates a meaningful strategic option for PLS. If it does not, we will have tested it in a controlled and capital-efficient way.” The milestone builds on a strong March quarter for PLS, with the company reporting record spodumene production of 232,400t, up 12% on the previous quarter. Revenue increased 52% to $567m, while unit operating costs fell 11% to $520/t. Operating cash margin rose to $461m and PLS finished the quarter with cash reserves of $1.46b. PLS reaffirmed FY26 guidance and said the quarter reflected improved plant reliability and continued momentum across the Pilgangoora operation. Alongside commissioning, the company continued advancing broader growth initiatives, including preparing for the restart of operations at its Ngungaju plant, the P2000 expansion feasibility study and downstream development through its POSCO joint venture.
