PLS – formerly known as Pilbara Minerals – will spend A$250 million – A$280 million on mine development projects in the 2026-27 financial year, up from A$146 million in 2025-26, largely because of increased mine waste removal.
The company will spend an additional A$175 million on pre-final investment decision work on its P2000 expansion project, it told investors on 24 August. The project could increase PLS’ lithium concentrate production capacity from one million tonnes per year to two million tonnes per year.
But PLS’ final investment decision on its P2000 expansion is subject to feasibility study outcomes, lithium prices, and funding constraints, the company said.
PLS’ investments come on the back of recent lithium price hikes. The company sold lithium concentrate for an average price of $1,708/tonne (A$2,385/tonne) – on a 6% Li2O basis – in 2025-26, up 122% on the year. And prices could grow over coming decades because of lithium supply gaps.
Demand for lithium carbonate could exceed supply by 1.6 million tonnes per year by 2040, according to estimates from Benchmark Mineral Intelligence (BMI). But lithium miners only produced 1.6 million tonnes of carbonate in 2025, BMI data show.
PLS’ board approved the restart of its Ngungaju lithium processing plant in February 2026 because of increased consumer demand and lithium prices. It expects to produce 200,000 tonnes of lithium concentrate at the plant each year from October 2026.
But PLS is not the only company looking at restarting dormant lithium projects. Mineral Resources approved the restart of its Bald Hill lithium mine in May 2026 because of lithium price increases. The company expects to produce 165,000 tonnes of lithium concentrate at the mine each year from October-December 2026.
Western Australia’s (WA) state government has taken steps to support lithium producers in recent months. In April, it offered two downstream lithium hydroxide refiners – Tianqi Lithium Energy Australia and Covalent Lithium – up to A$30 million worth of fee waivers to help address lithium price challenges.
“It is crucial to support these two strategically important businesses while they battle with volatile commodity prices amid a period of rising costs,” WA Mines and Petroleum Minister David Michael said.
“[The fee waiver] provides support ahead of the introduction of the Commonwealth’s Critical Minerals Production Tax Incentive, which provides a 10 per cent rebate on processing costs and comes into effect on 1 July 2027,” Michael added.
By Avinash Govind