Growing concerns about energy security are fueling increased demand for lithium, according to the chief executive of Australia’s leading independent lithium mining company, PLS.
CEO Dale Henderson announced Friday that his company achieved remarkable success in the third quarter, nearly doubling lithium production while surpassing analyst projections. The mining operation reported an impressive 86% jump in spodumene concentrate production.
“In aggregate, what we’re seeing in the sector is deepening and broadening demand and strong tailwinds for lithium operators,” Henderson told Reuters.
The executive’s optimistic outlook stems from recent discussions with customers and industry leaders during a trip to China, which confirmed data indicating a rebound in electric vehicle sales.
Henderson highlighted robust interest from the stationary battery market and emerging electric mobility sectors, including electric trucks, as additional drivers of demand growth.
Investors responded positively to the news, with PLS shares climbing as much as 6.2% to A$6.030 before settling at A$5.890 as of 0225 GMT.
The company achieved record-breaking results in the quarter ending March 31, producing 232,436 dry metric tons of spodumene concentrate. This figure significantly exceeded the Visible Alpha consensus forecast of 215,000 dmt and nearly doubled the previous year’s output of 124,978 dmt.
The exceptional performance was largely attributed to strong recovery operations at the Pilgangoora facility in Western Australia, where lithium recovery rates averaged approximately 75%.
Spodumene shipments also showed substantial growth, reaching 195,691 dmt during the quarter compared to 125,468 dmt in the same period last year.
Looking ahead, PLS announced intentions to increase production at its Ngungaju plant in Western Australia to steady-state levels during the September quarter, while planning major maintenance work for the current quarter.
Henderson revealed that the company is engaged in discussions with major chemical manufacturers regarding supply contracts and is working to secure additional offtake agreements similar to its benchmark deal with China’s Canmax announced in February.
Operating costs showed improvement, declining 11% sequentially to A$520 per metric ton, though the company expects costs to rise in the current quarter due to restart expenses at the Ngungaju facility.
RBC Capital analyst Kaan Peker praised the results in a research note, calling it “a clear beat, driven by stronger-than-expected production and a meaningful cost outperformance.”
The Perth-based mining company maintained its 2026 production target of 820,000 to 870,000 tonnes.
In additional news, PLS secured a funding grant worth up to A$38.1 million ($27.17 million) from the Australian Renewable Energy Agency (ARENA), which will help offset operating expenses during the validation phase of its Mid-Stream Demonstration Plant.
