Sydney, Jan 14, 2026, 17:20 AEDT — Market closed
- PLS Group finished 0.2% higher, having hit A$4.94, close to its 52-week peak
- Lithium prices in China surged following announcements to phase out battery export tax rebates
- Investors are turning their attention to PLS’s December-quarter update, scheduled for Jan. 30
PLS Group Limited shares edged up on Wednesday, staying close to a 52-week peak amid a surge in lithium prices in China. The stock finished 0.2% higher at A$4.87, after hitting an intraday high of A$4.94, though volume lagged its recent average, data indicated. (Investing)
The timing is crucial. Lithium has driven major shifts in Australian producers, and the recent China-led rally has drawn investors back in after a lengthy period when prices posed the main risk.
With the ASX closed, attention now shifts to whether that bid holds once volumes pick up and futures markets settle. Traders will also turn their focus beyond the immediate price spike, zeroing in on what PLS reveals about output, costs, and sales in its upcoming update.
Lithium prices in China surged this week following Beijing’s announcement to begin phasing out value-added tax export rebates—tax refunds that lower exporters’ costs—for battery products. The most-active lithium carbonate futures contract on the Guangzhou Futures Exchange hit its daily limit, closing 9% higher at 156,060 yuan per metric ton, Reuters reported.
For miners such as PLS, the connection is indirect yet tangible. An uptick in battery exports can boost short-term demand for lithium chemicals, which usually pushes up prices for spodumene concentrate — the lithium-rich mineral shipped from many Australian mines for processing.
PLS calls itself the owner of the largest independent hard-rock lithium operation, the Pilgangoora project in Western Australia. The company supplies lithium materials for the battery supply chain.
Analysts are increasingly seeing demand for lithium stretch beyond just electric vehicles. “Energy storage is likely to become a game changer for lithium,” Jinyi Su, an analyst at consultancy Fubao, told Reuters earlier this month. Still, Su cautioned that prices rising too much could undermine the economics of storage projects. (Reuters)
But the setup works both ways. Lithium prices have a history of sharp reversals, and policy moves in China can boost demand one quarter only to create a shortfall the next. If battery makers ease off production or supply ramps up sooner than forecast, prices—and high-beta miners—could take a swift hit.
Investors will be closely watching if the recent spike in Chinese lithium futures sticks, and if that momentum spills over into physical prices and contract negotiations. The Australian dollar’s moves will also play a key role in shaping local producers’ realized margins.
PLS’s next major event is the December 2025 quarterly activities report, set for Friday, Jan. 30. The company announced an investor webcast and call will follow at 10:00 a.m. AEDT, according to its ASX release.
