The PLS Group Ltd (ASX: PLS) share price is in focus after the company announced plans to lift Pilgangoora production to around 2 million tonnes per year.
PLS Group is one of the largest lithium miners globally, with its Australian Pilgangoora operations being its most important project.
P2000 expansion plan approved
The ASX lithium share said it has taken a positive final investment decision (FID) decision for the P2000 project at Pilgangoora in Western Australia.
It will lift the Pilgangoora spodumene concentrate (lithium) production to around 2 million tonnes (mt) per year through construction of the new Jimmagunya processing plant, while improving the long-term unit cost position. First production is expected in the September 2029 quarter – roughly three years away.
The company said that the P2000 feasibility study supports investment of approximately A$1.9 billion, delivering an additional post-tax net present value (NPV) of $2.7 billion and an internal rate of return (IRR) of 29.5%.
PLS Group suggested the average unit operating costs (on a free on board (FOB) basis) will be approximately A$620 per tonne (‘real’) over the first 10 years.
The ASX lithium share also said that it will unlock greater value from the orebody, with approximately 67mt of mineralised contact material previously classified as waste now economically recoverable as ore and included in the updated ore reserve.
PLS Group said the P2000 project capital spending amounts to approximately A$1.9 billion, including previously approved pre-final investment decision expenditure, but excluding separately approved infrastructure spending.
The company noted that there’s a further long-term growth opportunity beyond P2000, with a separate underground pre-feasibility study and maiden underground ore reserve.
Infrastructure spending
In a separate ASX announcement, the ASX lithium share said it intended to spend around A$600 million to A$650 million on enhancing infrastructure at Pilgangoora.
This investment will be phased over three financial years to FY29, with the majority of the expenditure expected in FY28.
The investments are expected to reduce operating costs and improve productivity in the existing operations, while providing additional infrastructure capacity for the planned P200 expansion.
It highlighted three main elements.
Firstly, with the Wodgina road east, it will upgrade and seal around 24km of main access road to enable higher-capacity RAV10 ultra-quad haulage, reducing daily concentrate haulage movements by around 35% and lowering transport and road maintenance costs. This includes a co-funding model with the Western Australian government for the public section of the road.
Next, a permanent village with 1,200 beds to improve accommodation quality, supporting workforce wellbeing, attraction and retention. It will progressively relocate and decommission existing accommodation, enabling more efficient waste placement and haulage, improving mine sequencing and operational flexibility.
Third, it will invest in a new mine services facility that will support the transition to larger ultra-class haulage equipment, improving equipment availability and maintenance productivity while reducing maintenance costs.
Final thoughts on the PLS Group share price
Clearly, the company wants to capitalise on the growing demand for lithium batteries, with electric vehicles being a key driver of that growth.
Considering the PLS Group share price has dropped by more than half since June 2026, this could be an opportunistic time to invest. It depends on what happens with the lithium price – if lithium is the responsible commodity for all future battery demand, then it has a great future, though other types of battery could challenge lithium in the future.
For now, there are other ASX growth shares I’d rather focus on.
