The Australian Renewable Energy Agency (ARENA) is providing up to $38.1 million to PLS Group Limited (PLS) to support an innovative, lower-emission lithium processing demonstration plant in Western Australia.
The project will trial Calix Limited's innovative, electric-kiln technology, which has the potential to cut emissions from calcination, one of the most energy intensive steps in lithium processing, by more than 80% when powered by renewable energy. The demonstration plant is 100% owned and operated by PLS and will be located at its Pilgangoora Operation in the Pilbara.
ARENA CEO Darren Miller said the project supports ARENA's priority to accelerate low emissions processing technologies in the critical energy minerals sector.
"Australia supplies more than half of the world's spodumene but refines only a small portion at home. This project is an important step in building Australia's capability to produce low emissions battery materials onshore and to capture more value from the global transition to clean energy."
Once fully operational, the plant is designed to produce approximately 3,000 tonnes of lithium phosphate per year, a key material used in the manufacture of lithium-ion batteries, particularly for electric vehicles and energy storage applications.
Australia is the world's largest producer of spodumene, a mineral used to make lithium chemicals such as lithium phosphate. However, most spodumene is currently processed overseas. By demonstrating a cleaner, more efficient refining process here in Australia, the project aims to build local capability and create new economic opportunities.
PLS Managing Director and CEO Dale Henderson said Australia had a major opportunity to build greater value through local processing.
"The Mid-Stream Demonstration Plant is an important step toward capturing more processing value onshore while demonstrating lower-carbon methods for producing the lithium battery materials the world needs."
"This funding highlights the Australian Government's commitment to backing local innovation with the potential to significantly reduce emissions across the global lithium supply chain."
"We're proud to be progressing this technology at Pilgangoora with support from the Australian Government, demonstrating how Australia can play a leading role in the sustainable processing of critical energy minerals."
As a key driver of early-stage capability building in the critical energy minerals sector, ARENA is supporting Australian companies to develop local expertise, build low emissions processing capacity, and lay the foundations for a more resilient and competitive industry.
The Advancing Renewables Program (ARP) is ARENA's flagship, always-open funding initiative supporting a broad spectrum of renewable energy projects from early-stage research and development through to demonstration and pre-commercial deployment. This program is continuously open for applications that align with ARENA's strategic priorities as set out in the Investment Plan.
This project is ARENA's second investment in critical energy minerals, which was added to the Investment Plan in 2025 as a focus area within the low emissions metals strategic priority.
For more information about the Advancing Renewables Program visit the ARENA funding page.
