PLS Group re-ramping lithium plans to meet ‘significant demand’ as revival builds

PLS Group (ASX:PLS) plans to lift production capacity and accelerate expansion on the back of sustained improvement in lithium fundamentals, progressing a range of WA operations to meet “significant demand” from customers.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

Heading the ramp-up of production is PLS Group (formerly Pilbara Minerals) board approval for the restart of the 200,000 tonnes per annum Ngungaju plant. Production is to resume in July CY26, the producer said today.

Elsewhere, the WA company is on target to release a Pilgangoora expansion feasibility study in the December Quarter, CY26. A similar timeline has been set for the Colina project feasibility study outcomes. That study has been extended to incorporate additional drilling and optimisation work.

“The restart of the Ngungaju plant demonstrates the disciplined through-the-cycle strategy we have executed – preserving operational capability and balance sheet strength during the downturn so we could respond decisively as conditions improved,” PLS managing director and CEO Dale Henderson said.

“Supported by contracting and strengthening fundamentals, restart capital remains within our FY26 guidance, enabling us to bring 200ktpa of additional production capacity back online with limited execution risk and enhanced volume leverage.”

Earlier this month, PLS Group executed a multi- year offtake agreement with Canmax Technologies for the supply of spodumene concentrate. That two-year binding offtake agreement is for the supply of 150K tonnes per annum of spodumene concentrate (with an option for PLS to supply more volumes).

“Beyond Ngungaju, our growth options are sequenced and returns-driven. P2000 represents a material brownfield expansion opportunity progressing through feasibility, while at Colina, we are investing in resource growth and expanding the feasibility study to optimise long-term scale and economics,” Mr Henderson said.

“Both projects remain 100% owned and controlled by PLS, with volumes currently unallocated, providing strategic flexibility as we progress toward investment decisions.”

Mr Henderson today concluded: “PLS Group enters this phase from a position of strength, and our capital allocation framework remains unchanged – any growth will be advanced selectively, preserving financial flexibility and ensuring a clear pathway to attractive long-term returns for shareholders.”

PLS heads into Thursday trade selling at $4.43/sh.

Join the discussion: See what HotCopper users are saying about PLS Group Ltd and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.