Lithium exporter PLS says bad and unintended consequences could result from a government plan to set minimum price floors for the battery mineral, and taxpayer funds may be better spent on shared infrastructure that lowers production costs across the sector.

A taxpayer-backed “price floor” for critical minerals has been touted by federal Resources Minister Madeleine King as part of work to develop a $1.2 billion “strategic reserve” of the metals needed for defence and decarbonisation applications.