PLS Group Shares Surge 6.5% as Lithium Stocks Rally, Lifting Australia's Biggest Independent Producer Off Lows

SYDNEY — Shares of PLS Group Ltd. rose more than 6% on Wednesday as lithium stocks rallied, lifting Australia's largest independent lithium producer further off its lows for the year.

PLS shares gained 19 Australian cents, or 6.53%, to A$3.10 after trading between A$2.815 and A$3.14. Volume was heavy, with more than 32 million shares traded, and the company was valued at about A$10 billion.

Despite the gain, the stock is down about 10% over the past year.

PLS did not release any market-sensitive news on Wednesday. The rise came as lithium stocks, consumer staples and industrials attracted buyers on the Australian market, which recovered from an early sell-off driven by U.S. inflation data. Mining stocks overall lagged after gold and copper prices fell overnight.

A volatile year

PLS, formerly Pilbara Minerals, is often seen as the most volatile major lithium stock on the ASX. As the biggest pure-play producer of spodumene, a lithium-bearing mineral, its earnings move closely with spot prices.

The shares fell about 32% in a month earlier this autumn as global lithium prices weakened, before rebounding in late October.

"In lithium, price is the best guide to the fundamentals," Market Index analyst Carl Capolingua wrote last month.

The weakness in the share price contrasts with a strong operating year. For fiscal 2026, PLS reported net profit after tax of A$526 million, compared with a loss of A$196 million a year earlier. Unit operating costs fell 9% to A$569 a ton, and the company reinstated its dividend with a fully franked final payout of 5 cents a share.

The company had about A$2.29 billion in cash at the end of the fiscal year, including proceeds from its first US$600 million bond.

Expansion plans

In October, PLS approved a final investment decision on its P2000 expansion at the Pilgangoora operation in Western Australia's Pilbara region. The project includes a new processing plant and aims to lift production capacity to about 2 million metric tons a year, with first production targeted for the September quarter of 2029.

PLS estimated the project's capital cost at about A$1.9 billion, excluding up to A$650 million in separately approved infrastructure spending. The shares rose 3% when the decision was announced. The company said it would fund the expansion from cash and operating cash flow and may consider debt.

PLS has also signed a 20-year power purchase agreement with Fortescue to supply electricity to Pilgangoora.

Outlook depends on prices

Analysts say the outlook for PLS depends largely on spodumene prices and demand for electric vehicle and grid-storage batteries, especially in China. Prices recovered strongly earlier this year after Zimbabwe banned raw lithium exports, but have since been volatile as new supply came online.

Investors will watch Chinese lithium prices, PLS's next quarterly production report and progress on the P2000 expansion.