Australia's Lithium Comeback Boosted by Pilgangoora Expansion

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

PLS Group Limited has announced plans to spend AUD$1.3 billion (US$914 million) to expand its Pilgangoora lithium mine in Western Australia.

Recovery Underway

Australia's recovery in lithium mining has been boosted by news that PLS Group Limited aims to double production of spodumene concentrate at the Pilgangoora lithium mine in Western Australia. 

The company has confirmed that it will spend AUD$1.3 billion (US$914 million) to expand mining operations at its Pilgangoora lithium mine, creating 1,500 jobs in the process. It will aim to increase spodumene concentrate production to roughly 2 million tonnes per annum, up from 1 million tonnes today. The expansion, which will be complete in 2029, would allow it to overtake Talison's Greenbushes mine, also in Western Australia, which is the world's largest hard-rock lithium mine. According to Industrial Info Resources data, there are six Pilgangoora lithium projects worth more than US$914 million in investment. 

Company Take

Dale Henderson, PLS managing director and chief executive officer, said: "Pilgangoora has grown significantly over the past decade and, as we look ahead, we are continuing to invest in the infrastructure needed to support the long-term potential of this world-class asset. The investments are expected to reduce operating costs, improve productivity and strengthen the existing operation, while also providing the infrastructure capacity required to support the increased scale of P2000. We welcome the Western Australian government's initial funding commitment towards the Wodgina Road upgrades."

Government Reaction

"I welcome PLS's decision to expand Pilgangoora operation, which will support about 1,000 construction jobs, create 500 ongoing roles, and deliver new opportunities for local contractors and businesses across the Pilbara," said Western Australia's Premier Roger Cook. ""Every new mine, every expansion, and every tonne of lithium processed in WA means more jobs for Western Australians."

Australia's Boom & Bust Lithium Cycle

Western Australia's lithium industry recorded sales of almost 4 million tonnes of spodumene concentrate in 2025, the highest volume on record. That figure represents a comeback for lithium mining in Australia, which has suffered in recent years and seen a number of mines shuttered. The sector has experienced a full boom-bust-recovery cycle over the past three years, thanks to wildly fluctuating prices for spodumene concentrate globally. Australia is the largest lithium mining nation and according to the U.S. Geological Survey, the country mined about 92,000 tonnes of lithium in 2025, roughly 32% of a world total of about 290,000 tonnes. The next-largest producers were China, at about 62,000 tonnes, and Chile, at 56,000 tonnes. The country is less successful on the lithium-processing front. 

Lithium Comeback

In the past year, a number of idled mines have been brought back into production, thanks to improving prices. In May,  Mineral Resources (MinRes) announced the restart of operations at its 100%-owned Bald Hill lithium mine in Western Australia. Located 50 kilometers (km) south-east of Kambalda in the Goldfields region, Bald Hill has a production capacity of approximately 165,000 dry metric tonnes (dmt) per annum of 5.1% spodumene concentrate, equivalent to 140,000dmt of spodumene concentrate 6% (SC6), a high purity lithium ore. The mine was placed on care and maintenance in November 2024 due to low lithium prices. In June, Industrial Info Resources reported that two major lithium mining projects in Western Australia, Mount Holland and Mount Marion, were cleared to begin. For additional information, see June 5, 2026, article - Two Major Lithium Mining Projects Green Lit in Australia. 

According to Industrial Info Resources data, there are more than 60 active lithium mining-related projects in Australia with a combined investment value of almost US$6.3 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports.  

Key Takeaways

• PLS Group Limited is spending AUD$1.3 billion (US$914 million) to expand its Pilgangoora lithium mine.
• Industrial Info Resources is tracking 6 Pilgangoora lithium projects worth more than US$914 million in investment. 
• Western Australia recorded sales of almost 4 million tonnes of spodumene concentrate in 2025, the highest volume on record.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).