The Australian lithium producer is preparing to expand its Pilgangoora operation as it anticipates stronger demand and tighter global supply in the years ahead.
Australia-based lithium producer PLS Group has pointed to stronger long-term demand for lithium while continuing preparations for a major expansion of its Pilgangoora operation in Western Australia.
The company made the comments as it released its full-year results for the financial year ended June 30, 2026. PLS reported a significant improvement in its financial performance, supported by higher lithium prices, increased production and stronger sales.
Stronger Production and Financial Performance
PLS produced 879.5 thousand tonnes of spodumene concentrate during FY2026, an increase of 17% from the previous year. Sales also increased 17% to 891.6 thousand tonnes.
The improvement in production and pricing helped the company generate revenue of A$1.93 billion, while underlying EBITDA reached A$1.14 billion. PLS also ended the financial year with approximately A$2.29 billion in cash.
The stronger results reflect the recovery in lithium market conditions during the year. The company's realised lithium price rose substantially compared with the previous financial year, helping improve profitability.
Expansion Could Increase Pilgangoora Capacity
Alongside its financial results, PLS is continuing work on its P2000 expansion project at Pilgangoora.
The proposed project has the potential to increase production capacity at the Western Australian operation to around 2 million tonnes per year. PLS has already approved approximately A$175 million in pre-final-investment-decision spending to advance early work and reduce the time required to develop the project if it receives final approval.
However, the company has made clear that the spending does not mean the final investment decision has already been made. The P2000 project remains dependent on the results of its feasibility study, market conditions and approval by the company's board.
The feasibility study is expected to be completed in the December quarter of 2026.
Lithium Supply Outlook
PLS's expansion plans come as the company expects lithium demand to remain important over the longer term, particularly because of the growing use of lithium in electric vehicles, batteries and energy-storage systems.
A stronger demand environment could put pressure on future supply if new production does not come online quickly enough. This is one reason PLS is preparing additional capacity while maintaining a cautious approach to major capital commitments.
The company has also continued work on other growth opportunities, including its Colina lithium project in Brazil and downstream processing initiatives.
Company Remains Cautious on Final Investment
Despite improving lithium prices and strong financial results, PLS is not committing to the full P2000 expansion yet.
The company's current approach is to complete the necessary studies and early work before making the final decision. This allows PLS to prepare the project while retaining flexibility over how much capital it commits.
If approved, the expansion would give the company significantly greater production capacity at Pilgangoora and could strengthen its position in the global lithium supply chain.
For now, PLS enters the new financial year with stronger finances, higher production and a major expansion project moving closer to a potential investment decision.
Source note: This article is independently written and does not reproduce wording from other news reports. The factual information is based primarily on PLS Group's official FY2026 results and company disclosures.