Pilbara lithium miner PLS Group has made the call to revive its mothballed Ngungaju lithium processing plant amid a modest rebound in prices from the depths of the battery metal’s downturn.
Pilbara lithium miner PLS Group has made the call to revive its mothballed Ngungaju lithium processing plant amid a modest rebound in prices from the depths of the battery metal’s downturn.
PLS told the market its board had approved the restart of 200,000 tonnes per annum plant which was placed on care and maintenance in late 2024, with the operation poised to come back online in early July.
Ngungau – the smaller operation compared to the Pilgan plant – was shuttered amid the steep lithium price downturn which at the time saw prices tumble to US$700/t from the highs of US$8,000 in 2022.
PLS fetched US$1,105 for its battery grade product in the first half of the financial year, up 42 per cent from the $US780 it was pocketing this time last year.
The overall price recovery to above US$2,000/t has prompted PLS, and fellow Western Australian lithium miners, to mull restarts and expansions of their idled assets.
But, the price recovery alone was not enough for Albemarle to keep the lights on at its Kemerton lithium refinery, after it moved the downstream processing operation on to care and maintenance.
The US miner cited challenges facing Western lithium operations and the cost gap between operating in Australia and China for the decision, which cost 250 local jobs.
Managing director Dale Henderson said the Ngungaju restart demonstrated the disciplined through-the-cycle strategy to respond decisively as conditions improved.
“Supported by customer contracting and strengthening market fundamentals, restart capital remains within our FY26 guidance, enabling us to bring approximately 200ktpa of additional production capacity back online with limited execution risk and enhanced volume leverage,” he said.
The Pilgangoora miner said it would incur some costs in the second half, with unit operating costs tipped to reach the higher end of the $560/t to $600/t guidance range.
Fellow lithium miner Mineral Resources is similarly considering a restart of its mothballed Bald Hill lithium mine and last told the market it was evaluating options amid prevailing market conditions.
The iron ore and lithium miner is due to the update the market on Friday.
Aside from Albemarle, IGO and Tinaqi Lithium are still grappling with ramping up their plant in Kwinana, while all eyes are on Wesfarmers and SQM's Covalent Lithium as it ramps up its refinery to produce lithium hydroxide.
PLS is still mulling an expansion of its Pilgangoora operation to 2Mtpa through brownfields development, with feasibility study results expected in the December quarter.
The feasibility study outcomes for its Colina project in Brazil – acquired from Latin Resources in late 2024 - is tipped to be released in the December quarter of 2027.
PLS also told the market it had bought out its joint venture partner Calix Limited in the mid-stream demonstration plant project for $11.4 million cash.
The Western Australian miner will take over full ownership, funding and operational responsibility for the plant – located at its Pilbara operation.
The royalties carve up has been revised to PLS with 80 per cent and Calix with 20 per cent, previously 55 per cent and 45 per cent, respectively. Calix will continue to provide, and be paid for, technical support at the plant.
PLS reported half-year profit of $33 million, an improvement from the loss of $69 million in the prior corresponding period, from revenue of $624 million, up from $426 million in FY25.
Production increased by 6 per cent to 432,800t for the six months.
Its cash pile dipped below $1 billion to $954 million.
