Pilbara Minerals (PLS) has pulled the trigger on the restart of its Ngungaju processing plant, moving to capitalise on strengthening lithium market conditions and renewed customer demand.

The company has approved the restart of the 200,000 tonnes per annum Ngungaju plant, with production scheduled to resume in early July 2026 following completion of readiness and evaluation activities, including a crusher upgrade. Restart capital is fully incorporated within its 2025-26 financial year (FY26) guidance.

PLS said it will incur some operating costs in the second half of FY26 to prepare for the restart, with unit operating costs (FOB) expected toward the upper end of the $560 per tonne to $600 per tonne guidance range due to restart preparation activities. Capital expenditure guidance for FY26 remains unchanged.

“The restart of the Ngungaju plant demonstrates the disciplined through-the-cycle strategy we have executed – preserving operational capability and balance sheet strength during the downturn so we could respond decisively as conditions improved,” PLS managing director and chief executive officer Henderson said.

“Supported by customer contracting and strengthening market fundamentals, restart capital remains within our FY26 guidance, enabling us to bring approximately 200ktpa of additional production capacity back online with limited execution risk and enhanced volume leverage.”

Beyond Ngungaju, PLS has reaffirmed its sequenced growth strategy, with feasibility outcomes for the P2000 Pilgangoora expansion targeted for the December quarter of 2026, while the Colina Project feasibility study in Brazil has been extended to the December quarter of 2027 to incorporate additional drilling and optimisation work.

Henderson said PLS would continue to advance growth selectively, ensuring capital discipline and long-term shareholder returns remain the priority.

Read more: PLS powers ahead

Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.