Pilbara Minerals (PLS) has announced it is evaluating the potential restart of its large Ngungaju processing plant at the Pilgangoora operation in Western Australia's Pilbara region. This move comes as the company declares the end of a challenging period for the lithium sector, often referred to as the 'lithium winter'.
Restart Evaluation Underway
The Dale Henderson-led miner confirmed on Friday that it is assessing a revival of the 200,000 tonne-per-annum Ngungaju facility, which is one of two processing plants at its flagship Pilgangoora site. Subject to the outcomes of this evaluation, the board expects to consider whether to proceed with a restart decision during the March quarter of 2026.
If approved, the Ngungaju plant is anticipated to be capable of resuming production within approximately four months of a restart decision. This development marks a significant shift for the operation, which was placed into care and maintenance in December 2024, resulting in the loss of 50 jobs at that time.
Market Resurgence Drives Revival
The consideration to restart Ngungaju aligns with a broader resurgence in the lithium market, prompting several Western Australian miners to bring curtailed spodumene concentrate production back online. PLS has joined this race, with its evaluation following similar announcements from key rivals in the state.
Just a day prior, three other WA lithium producers revealed plans to increase production. Mineral Resources flagged a restart at Bald Hill, Liontown Resources dusted off major expansion plans at its flagship Kathleen Valley operation, and IGO signalled more growth at WA's largest lithium mine, Greenbushes.
Financial Recovery and Price Surge
This revival comes as WA's lithium mines, excluding Greenbushes, have swung from loss-making to highly profitable during the final quarter of 2025. PLS achieved an average realised spodumene concentrate price of $US1,161 per tonne in the December quarter, representing a substantial 57 per cent increase compared to the previous three months.
The company added $102 million in cash, bringing its total cash holdings to $952 million by December 31, 2025. In his opening address on a call with analysts on Friday morning, CEO Dale Henderson officially declared the 'lithium winter' over, signalling renewed optimism for the sector's prospects.
Industry-Wide Momentum
The collective moves by PLS and its competitors highlight a turning point for the Australian lithium industry, which faced significant headwinds in recent years. The Pilbara region, rich in lithium resources, is once again becoming a focal point for investment and production as global demand for battery materials strengthens.
This evaluation represents not only a potential operational restart but also a strategic response to improving market conditions, positioning PLS to capitalise on the recovering lithium prices and increased demand for spodumene concentrate.
