Sydney, Feb 10, 2026, 16:45 (AEDT) — Market is done for the day
- PLS shares climbed, buoyed by news of a fresh Canmax supply agreement that includes both a price floor and a prepayment commitment from the lithium producer.
- The deal secures 150,000 tonnes of spodumene concentrate per year, plus options to bump up both term and tonnage.
- Next up for traders: they’re watching for that US$100 million prepayment and the interim results update slated for Feb 19.
PLS Group Limited ended Tuesday up 1.7% at A$4.24, following news of a new spodumene supply agreement with China’s Canmax Technologies that features a price floor and a US$100 million upfront payment. Earlier in the session, shares jumped as much as 5.3%, moving between A$4.19 and A$4.39. 1
The setup is drawing eyes as lithium prices keep swinging, with producers hustling to shore up cash flow after a steep drop tied to oversupply. Battery storage demand offered some support this year, yet volatility hasn’t let up. PLS, for its part, has mentioned it might bring its Ngungaju operation in Western Australia back online. Canmax, meanwhile, has been busy securing more supply, including an agreement with Liontown late last year. 2
Here’s the thing about a floor price: it’s there to keep realised prices from slipping under a set threshold, no matter what spot markets do. The prepayment works differently—straight cash in advance, which can take some of the edge off when margins start to shrink.
PLS has locked in a binding deal to supply 150,000 tonnes per year of spodumene concentrate over two years starting in calendar 2026, keeping open the door for extra tonnages and a possible 12-month extension. The agreed floor price lands at US$1,000 per tonne on an SC6 basis—roughly 6% lithium content. No price ceiling if the market runs higher, the company noted. “The agreement strengthens our near-term liquidity,” said Managing Director and CEO Dale Henderson. 3
Momentum faded near the close, though investors read the deal as a sign PLS remains able to land sizable contracts that help limit risk on the downside. Still, whether the contract leads to real changes—particularly in how idle capacity is managed—remains to be seen.
There are a few snags. The agreement hinges on securing the US$100 million unsecured, interest-free prepayment. Contract protections won’t stop lithium prices from outpacing them if costs swing higher. And while there’s a floor price, it won’t shield margins if the market stays soft for longer than anticipated.
Next session, traders will be looking for any word on prepayment, along with any sign that management might tie this contract to a more definite position on Ngungaju. Beyond the company, lithium prices and battery supply chain demand signals are still the wild cards.
PLS is set to report interim results on Feb. 19. Investors have their eyes on sales numbers, the latest cost figures, and whether management will outline a timeline for any changes to production. 4
