Lithium’s fundamentals are starting to shine: PLS
Dale Henderson, the head of Australia's largest lithium producer, says massive data centre investment will drive unprecedented demand for the battery metal.
Economy
How would you rate the momentum of the Australian economy as we head into 2026? Momentum across the Australian economy remains mixed, but for PLS the macro fundamentals continue to point in the right direction. Are cost pressures in your business: increasing/stable/easing? Are you likely to increase, hold steady, or trim your investment spend or employment over the next 12 months?
Global electrification and storage build-out are reshaping the demand for lithium. The long-term fundamentals are strengthening, not weakening.
Domestically, rising energy costs, the pace of government infrastructure investment and ongoing environmental policy reform remain areas that could influence economic momentum.
Labour and energy costs remain the most persistent areas of inflation for our business, although pressures are moderating compared with the past three to five years.
With the major expansion of our Pilgangoora Operation completed in 2025, our capital intensity naturally reduces in 2026 as we consolidate the benefits of increased capacity and improved unit costs and prepare for our next growth phase.
Technology
Which best describes your organisation’s AI adoption? (Exploring/Piloting/Implementing selectively/Scaled across business). Ifimplementing or scaled, are the productivity benefits starting to come through or do you expect more time for the full impact. Has the use of AI started to influence employment decisions across your organisation?
AI is advancing at a pace that makes it clear the technology will be integral to how modern businesses operate. PLS is in the early stages of adoption, we see opportunity to apply AI across our operations to generate faster analytics and optimise mining, processing and logistics.
These improvements will directly support cost competitiveness, operational resilience and safety. Importantly, AI is also a major demand driver for lithium through the energy infrastructure needed to support data related services. This deepens our confidence in long-term market fundamentals.
People
Has your organisation evolved its approach to flexible working during the past year? Does your organisation have a policy around officeattendance. What feedback, if any, do you have for governments considering prescribing working from home for a set amount of days per week.
For the minerals processing sector, remote working isn’t feasible for most roles. We provide flexibility where appropriate for office-based teams, but strongly believe governments should not legislate prescribed work-from-home quotas. Businesses working with their employees are best placed to determine where these arrangements can work best.
Geopolitics
How significantly are global trade tensions/tariffs impacting your business? Is Australia getting the balance in managing its big economic and political relationships with major trading partners?
Trade tensions and the accelerating race to build new critical minerals supply chains had a meaningful impact on our sector in 2025.
A high volume of government policy changes, particularly new incentives and increasing protectionist measures, reflected an elevated the focus on how and where major economies source critical minerals and highlighted their strategic importance.
Major Western countries now recognise that substantial new investment is required to build supply-chain independence and mitigate supply chain concentration risks. This will take time and sustained long-term commitment, so critical minerals sourcing is expected to remain a strategic priority for the foreseeable future, which should continue to be supportive for PLS.
Energy
Do you have any concerns about Australia’s pathway to renewables? Should there be more flexibility in settings leading to 2035? Are energy costs becoming an increasing factor around your longer-term planning?
There’s broad consensus that the energy transition is essential, and renewable energy presents a compelling long-term economic and environmental case for Australia. Businesses need clarity and practical implementation pathways.
In the Pilbara, industry has been moving ahead on decarbonisation, and we are keen to see government play a stronger coordinating role to accelerate shared infrastructure and low-cost renewable power. What matters most now is collaborating to deliver systems that are reliable, affordable and scalable, rather than continuing the debate. With clear policy signals and coordinated investment, Australia can manage this transition with confidence.
Reform
What would nominate as your top policy priority that can be used to lift Australia’s competitiveness or productivity? Should The Albanese government be pushing for even bolder policies around reform?
The recent amendments to the environment laws are a step in the right direction. For Australia to remain competitive and attract long-term investment in critical minerals and other major industries, we need reforms that deliver both better environmental outcomes and streamlined assessment and approvals processes for industry.
Streamlined approvals have been clearly identified as key to improved productivity and will be critical in enabling the government’s economic agenda. With the framework now established by the EPBC Act amendments, priority should go to finalising bilateral accreditation between the WA and Federal governments so that we can reduce duplication, and ensure clear, predictable and transparent timelines for project assessment. We should aim for policy that balances environmental responsibility with investment certainty – because long-term private investment, sustainable jobs and globally competitive supply chains depend on it.
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