PLS Powering the Global Lithium Revolution

About PLS Group Limited

PLS Group Limited (ASX: PLS) is a leading global producer of lithium materials, owning 100% of the world’s largest independent hard-rock lithium operation — the Pilgangoora Operation in Western Australia — and the Colina Lithium Project in Brazil. The company is also integrated into the downstream lithium value chain through its joint venture with POSCO in South Korea, which manufactures battery-grade lithium hydroxide. PLS has established enduring partnerships with leading international companies including POSCO and Ganfeng, and is headquartered in West Perth, Western Australia.

A multi-decade market opportunity underpinned by structural demand growth

The global transition toward electric vehicles, battery energy storage and decarbonisation of heavy industry is set to provide PLS with sustainable earnings growth over the next two decades and beyond.

Lithium demand is forecast to grow at a compound annual growth rate of well above 20% through the 2030s, driven by the accelerating global rollout of EVs, battery energy storage systems and the electrification of industrial processes. Governments across the United States, Europe, China, Japan and South Korea have all legislated or targeted dramatic reductions in internal combustion engine vehicle sales over the coming decade — creating a structural and non-cyclical floor under lithium demand that is without historical precedent. PLS managed the lithium downcycle with discipline and strategic focus, preserving operational capability and balance sheet strength. As market fundamentals have improved, that same disciplined framework now positions the company to capitalise on its competitive strengths and progress its upstream growth portfolio selectively.

This structural shift is an irreversible step-change in global energy and transport systems. PLS’s positioning as the owner and operator of the world’s largest independent hard-rock lithium operation — with a multi-decade resource base, a proven processing platform, and a clear pathway to doubling production capacity — places it at the very centre of this transition.

A proven operational platform delivering record results

PLS delivered an outstanding operational result in FY26, achieving record annual production and sales, exceeding the top end of production guidance and generating exceptional cash margins in an improving pricing environment.

Full year FY26 production reached 879.5kt of spodumene concentrate, exceeding the top end of guidance of 820–870kt by approximately 10kt and representing 17% growth on the prior year. FY26 sales of 891.6kt were also up 17% year-on-year, with the June Quarter delivering record quarterly sales of 249.9kt — a 28% increase on the prior quarter. Revenue for FY26 reached A$1,934 million, up 152% on FY25, with the average realised price for the full year reaching US$1,488 per tonne, equivalent to US$1,708 per tonne on an SC6 basis.

The cash margin from operations for FY26 was A$1,356 million, up a remarkable 607% on FY25, reflecting the combination of higher volumes and a materially improved pricing environment. PLS closed the June Quarter with cash of A$2,290 million, up 57% during the quarter, including proceeds from the inaugural US$600 million Senior Notes offering. Net cash was A$1,344 million at 30 June 2026, providing the company with a formidable balance sheet from which to fund the next phase of growth.

The Ngungaju restart and P2000 Project — near-term catalysts for transformational production growth

Beyond the strong core operating platform, PLS has two significant near-term growth catalysts that are expected to materially increase production and cash flow generation over the coming years.

The restart of the Ngungaju plant commenced on 1 July 2026 and is progressing on schedule, with the plant expected to reach target production capacity within the first four months of FY27. Once fully operational, the combined Pilgangoora Operation will produce at a materially higher run rate, with FY27 production guidance of 1,030kt to 1,100kt representing approximately 20% growth at the midpoint on FY26. This is a transformational step up in the company’s production profile that will drive significant operating leverage and margin expansion in the current pricing environment.

The P2000 Feasibility Study — representing a potential expansion of Pilgangoora’s concentrate production capacity to approximately 2.0 million tonnes per annum — continues to progress, with outcomes expected in the December Quarter 2026. During the June Quarter, PLS approved approximately A$175 million of pre-FID capital expenditure to provide the company with optionality to expedite first ore from the P2000 Project. This investment spans processing plant procurement and engineering, on-site early works, and road infrastructure — positioning PLS to move quickly should the Feasibility Study deliver a positive outcome and the board approve a final investment decision.

The Colina Project, downstream integration and balance sheet strength create decade-long value

A further and often underappreciated component of PLS’s investment case is the scale of its growth optionality beyond the Pilgangoora Operation, and the strategic value of its integrated position across the global lithium supply chain.

The Colina Lithium Project in Brazil represents a genuinely world-class development asset, with the Feasibility Study on schedule for completion in the December Quarter 2027. Colina provides PLS with geographic diversification and exposure to a second major lithium district, with the potential to supply Western battery supply chains directly and benefit from the growing policy imperative across the US, Europe and Japan to source critical minerals from trusted jurisdictions. PLS is investing A$45–55 million in FY27 on drilling to extend the Colina Mineral Resource, licensing, and study activities.

Through the POSCO joint venture, PLS also has a direct window into the downstream lithium chemicals market, with battery-grade lithium hydroxide being produced and sold to customers across Europe, Korea, Japan and the United States. The development of US Section 45X advanced manufacturing production credit guidance represents a potential medium-term demand catalyst for diversified battery supply chains — and PLS retains flexibility to increase its P-PLS interest to 30% at cost until July 2027. These structural tailwinds — combining record production momentum, a transformational plant restart, a near-term expansion decision, and a A$2.3 billion cash balance — should continue to support PLS’s earnings growth profile in the decade ahead.

Conclusion

PLS occupies a rare and privileged position in the global critical minerals sector — the owner and operator of the world’s largest independent hard-rock lithium operation, with a record-breaking FY26 behind it, a transformational production ramp-up underway, and a multi-billion dollar balance sheet providing the financial firepower to fund the next phase of growth without shareholder dilution. The structural demand drivers for lithium — EV adoption, battery storage, and the global energy transition — are irreversible and accelerating, and PLS is positioned at the very heart of that transition. With Ngungaju now restarting, P2000 advancing toward a final investment decision, and Colina offering a second world-class growth pillar, the long-term earnings growth profile of PLS has rarely looked more compelling.