5 June 2026
PLS today opened Australia’s first mine-site lithium mid-stream processing facility at its Pilgangoora Operation in Western Australia, with WA Premier Hon. Roger Cook MLA officially cutting the ribbon.
The Mid-Stream Demonstration Plant Project (Demonstration Plant) represents a significant milestone in PLS’ strategy to move further down the battery materials value chain and capture greater value from its lithium resources by processing more material in Australia, rather than exporting it for further processing.
The Demonstration Plant uses electric calcination in a world-first application for primary lithium processing, converting spodumene concentrate produced at Pilgangoora into lithium phosphate, an intermediate product used in the production of lithium-ion batteries.
The project has now entered commissioning and operational validation, with first product expected in the September Quarter 2026.
Once fully operational, the Demonstration Plant is designed to process approximately 27,000 tonnes of spodumene concentrate from Pilgangoora each year and produce approximately 3,000 tonnes of lithium phosphate.
Producing an intermediate lithium product on site reduces the volume of material shipped overseas for further processing. This supports more jobs, investment and downstream industry development in Western Australia.
Construction supported more than 100 jobs, and the Demonstration Plant is expected to create around 40 ongoing roles, with potential for further employment if the technology is commercialised at a larger scale.
PLS Managing Director and CEO Dale Henderson said the opening marked an important milestone in the Company’s strategy to explore opportunities further along the lithium value chain.
“Today marks the completion of years of development, construction and collaboration, and the beginning of the next phase of the project,” Mr Henderson said.
“Australia is one of the world’s leading producers of hard rock lithium, however most spodumene concentrate is still exported for further processing.
“The Mid-Stream Demonstration Plant has been developed to test whether greater value can be captured at the resource by producing a higher-value lithium product at the mine site.
“Construction is now complete and our focus turns to commissioning, operational performance and commercial validation.
“If the technology performs and the product is embraced by the market, it creates a meaningful strategic option for PLS.
“We thank the Australian Government, ARENA and the Western Australian Government for their continued support. Their financial backing has helped bring the Demonstration Plant to this important milestone and recognises its potential to support lower-emissions processing and increased onshore value capture in Australia’s critical minerals sector.”
Premier Roger Cook congratulated PLS on opening Australia’s first mine-site lithium mid-stream processing in WA.
“My government’s vision is for Western Australia’s economy to remain the strongest in the nation, which means supporting businesses like PLS to diversify the State’s economy.
“This demonstration plant is what my government’s Made in WA plan is all about.
“By supporting job-creating projects that will diversify and decarbonise WA’s economy, my government is supporting our State’s pathway to becoming a renewable energy powerhouse that makes more things here.”
The Demonstration Plant received significant support both the Australian and Western Australian Governments, reflecting its potential contribution to lower-emissions processing and increased onshore value-add in Australia’s critical minerals sector.
This included up to $38.1 million in grant funding from the Australian Renewable Energy Agency (ARENA) under its Advancing Renewables Program to support operating costs during the validation phase. Construction was supported by $20 million from the Australian Government’s Modern Manufacturing Initiative and $15 million from the Western Australian Government’s Investment Attraction Fund.
Lithium phosphate produced during commissioning and ramp-up will be supplied to Ningbo Ronbay New Energy Technology Co. Ltd (Ronbay), a leading global cathode materials producer, under an existing offtake agreement. This provides a direct pathway to evaluate product performance and market acceptance with a leading participant in the battery materials supply chain.
The Demonstration Plant uses electric flash calcination technology developed by Australian technology company Calix Limited, which continues to provide technical support to the project.
When powered by renewable electricity, electric calcination removes fossil fuels from the traditional calcination stage of hard rock lithium processing, helping reduce power-related emissions intensity. Producing a higher-value intermediate product at the mine site also has the potential to reduce transportation and downstream processing emissions across the value chain.
The Demonstration Plant will be powered by Pilgangoora’s integrated on-site energy system, which combines solar generation and battery storage with gas-fired generation, as part of PLS’ broader power strategy.
Commissioning and ramp-up will progress in a staged and controlled manner through FY27. The validation program will assess plant performance, product quality, operating efficiency, emissions reduction potential and market acceptance, informing future commercial pathways for the technology.