PLS Group Ltd. has reached a positive final investment decision (FID) for the P2000 project at its Pilgangoora Operation in Western Australia, committing approximately AU$1.9 billion to expand spodumene concentrate production to around two million tonnes per annum (Mtpa).
Anchored by the construction of the new Jimmagunya processing plant, first production is targeted for the September quarter of calendar year 2029. The project is projected to deliver an incremental post-tax net present value of AU$2.7 billion and an internal rate of return of 29.5 per cent.
In conjunction with the FID, PLS announced a 23 per cent increase in its Pilgangoora Ore Reserve tonnes, representing a 31 per cent boost in contained lithium, alongside a maiden underground ore reserve of 46.5 million tonnes at 1.50 per cent lithium oxide.
Improved metallurgical understanding allows approximately 67 million tonnes of previously classified waste material to be economically recovered as ore, lowering the life-of-mine strip ratio and reducing unit operating costs.
To support the expanded footprint, PLS will invest between AU$600 million and AU$650 million in enhancing site infrastructure. This includes upgrading and sealing Wodgina Road East to enable ultra-quad haulage, establishing a new 1,200-bed permanent accommodation village, and building a dedicated mine services facility.
The developments are expected to create more than 1,000 construction jobs and around 500 ongoing operational roles.
PLS CEO Dale Henderson said the initiative establishes a resilient business model capable of navigating market cycles.
“P2000 will transform the scale and competitive position of PLS. It provides a pathway to approximately two million tonnes per annum of production, further extending PLS’ position as one of the world’s major lithium producers,” Henderson said.
“In a cyclical market, scale matters, but cost position matters more. P2000 delivers both, with materially greater production at lower long-term unit costs, strengthening Pilgangoora’s position on the global cost curve and creating a more resilient business through lithium market cycles.”
Project funding will be underpinned by the company’s existing cash balance and robust operational cashflows.
The Western Australian government hailed PLS’s decision to expand the Pilgangoora lithium operations, with Premier Roger Cook saying it will support more jobs in the state.
“This is exactly the kind of investment that keeps Western Australians in work today and creates the jobs of tomorrow,” Cook said.
“Every new mine, every expansion, and every tonne of lithium processed in WA means more jobs for Western Australians.”
The state government is supporting the expansion by investing AU$11 million to upgrade Wodgina Access Road, an important freight route connecting Pilgangoora with Great Northern Highway and Port Hedland.
The expansion comes as the state’s lithium industry recorded sales of almost four million tonnes of spodumene concentrate in 2025, the highest volume on record.
“As demand for battery minerals grows, projects like P2000 will ensure WA remains well placed to supply global markets,” said Mines, Petroleum and Exploration Minister Daniel Pastorelli.
