Highlights

• PLS approved an approximately AUD 1.9 billion expansion aimed at lifting annual spodumene concentrate production capacity.

• The planned Jimmagunya processing plant targets nearly two million tonnes of annual output from 2029 onwards.

• Technological changes added previously excluded material to the mine plan and increased the reported ore reserve.

• The company also outlined AUD 600 million to AUD 650 million for supporting infrastructure and related works.

A major processing expansion is set to transform production capacity at PLS Group Limited (ASX:PLS). The lithium producer has approved the P2000 project to scale its Western Australian Pilgangoora operation.

Pilgangoora Expansion

On 16 October 2026, PLS had approved an AUD 1.9 billion expansion of its Pilgangoora mine in Western Australia, known as the P2000 project. The plan involves building a new processing plant, called Jimmagunya, which is intended to lift spodumene concentrate output to nearly 2 million tonnes a year from 2029. That, it said, lifted Pilgangoora’s ore reserve by 23% and contained lithium by 31%. PLS expects average production of about 1.97 million tonnes a year of spodumene concentrate over the first ten years of steady-state operation, with average unit operating costs of around AUD 620 a tonne. Tantalum, a critical mineral used in electronics and defence, is expected to be produced as a by-product. Chief executive Dale Henderson was quoted as saying the project would strengthen Pilgangoora’s position on the global lithium cost curve and increase exposure to any recovery in lithium prices.

Funding and spending

PLS said it would also spend a further AUD 600 million to AUD 650 million on supporting infrastructure, including a new accommodation village, road upgrades and maintenance facilities. It plans to fund the work from a cash balance of AUD 2.3 billion and operating cash flow, . The company revised its FY27 Capital Expenditure forecast to between AUD 1.11 billion and AUD 1.18 billion to reflect the expansion. PLS shares rose more than 6% in early trading on the day of the announcement.

What the company does and how it has performed

PLS describes itself as a lithium and tantalum producer and explorer, and Pilgangoora is its flagship asset. ASX company data show PLS reported Revenue of about AUD 1.93 billion and Net Income of about AUD 526 million for the 2026 financial year, compared with revenue of about AUD 769 million and a net loss of about AUD 196 million a year earlier. The company paid a fully Franked Dividend of 5 cents per share, with an ex-dividend date of 2 September 2026. ASX data show a 52-week range of AUD 2.50 to AUD 6.81, so the current price sits well below the high of the past year.

Operating Considerations

A project of this size carries construction, cost and timing risk, and its returns depend on lithium prices when the new plant comes online. The company has said the expansion is intended to lower unit costs, but those figures are company estimates. The next confirmed milestone in the material reviewed is the 2029 production target for the P2000 expansion. Investors and analysts will also be watching the company’s regular quarterly reports for updates on production, costs and spending.