The Pilgangoora Mid-Stream Demonstration Plant project is the world’s first industrial-scale electric spodumene calciner, sited at Pilbara Minerals’ lithium operation in Western Australia’s Pilbara region. Construction entered an active phase in mid-2024 but was suspended in October 2024 at 60 percent completion, as joint venture partners Pilbara Minerals and Calix Limited cited difficult lithium market conditions for the temporary halt.

Grants, a New Owner and an Official Opening Signal the Turnaround

Construction resumed in February 2025 after a A$15 million Western Australian Government grant unlocked the path forward, with works completed in late 2025. PLS Group took full ownership of the facility in early 2026 and secured up to A$38.1 million from the Australian Renewable Energy Agency for operational validation costs, while also executing an offtake agreement with Ningbo Ronbay New Energy Technology for the plant’s lithium phosphate output. The facility was officially opened by Western Australian Premier Roger Cook in June 2026, with first production targeted for the September quarter of 2026. This appetite for on-site processing investment is a pattern shaping Western Australia’s resources sector more broadly, as illustrated by the Davyhurst Gold Project expansion near Kalgoorlie, where Ora Banda Mining recently awarded a A$233 million EPC contract to advance its own processing ambitions.

Project Overview

• Project Name: Pilgangoora Mid-Stream Demonstration Plant
• Location: Pilgangoora lithium operation, Pilbara region, Western Australia (approximately 120 km south of Port Hedland)
• Developer/Owner: PLS Group (formerly Pilbara Minerals); previously a joint venture with Calix Limited, with PLS acquiring full ownership in February 2026
• Total Cost/Value: A$104.9 million estimated construction cost, co-funded by A$20 million Australian Government grant and A$15 million Western Australian Government grant; up to A$38.1 million ARENA grant secured for operational validation
• Scale/Capacity: Designed to process approximately 27,000 tonnes of spodumene concentrate per annum and produce approximately 3,000 tonnes of lithium phosphate annually
• Construction Start: June quarter 2024; paused October 2024 at 60 percent completion; resumed February 2025
• Expected Completion: Construction completed late 2025; commissioning commenced June 2026
• Funding/Financing: A$20 million Australian Government Modern Manufacturing Initiative grant; A$15 million WA Government Investment Attraction Fund grant; up to A$38.1 million ARENA Advancing Renewables program grant
• Current Status: Commissioning and operational validation underway as of June 2026; first lithium phosphate production targeted for September quarter 2026
• Key Milestone: Official opening by Western Australian Premier Roger Cook in June 2026, marking the completion of Australia’s first mine-site lithium mid-stream processing facility and the world’s first industrial-scale electric spodumene calciner

Project Team

• PLS Group (formerly Pilbara Minerals, ASX: PLS) — Owner/Developer and Project Operator
• Calix Limited (ASX: CXL) — Technology Partner; original joint venture co-developer; supplier of the patented electric flash calcination technology; continues to provide technical services
• Lycopodium — Detailed Design Engineer (process, mechanical, structural, electrical and instrumentation engineering)
• Australian Government — Grant Funder via the Modern Manufacturing Initiative (A$20 million)
• Western Australian Government — Grant Funder via the Investment Attraction Fund (A$15 million)
• Australian Renewable Energy Agency (ARENA) — Grant Funder for operational validation phase (up to A$38.1 million under the Advancing Renewables program)
• Ningbo Ronbay New Energy Technology Co. Ltd — Offtake Partner for lithium phosphate produced at the demonstration plant

Reported 4th August 2023: The board of Pilbara Minerals has received Board Approval  for the establishment of a Pilgangoora project in WA, to produce lithium. Pilgangoora project is a joint venture between Pilbara Minerals and Calix Limited, which seeks to showcase the advantages of utilizing electric kiln technology to produce mid-stream lithium. By adopting this approach, it is projected that carbon emissions could be reduced by approximately 80 percent

Pilbara Minerals’ managing director and CEO, Dale Henderson, expressed his excitement as the company embarks on the next phase of their mid-stream strategy by constructing and operating a mid-stream demonstration plant in collaboration with their JV partner, Calix.

This milestone follows extensive studies and pilot test work, aiming to revolutionize the battery materials supply chain for lithium. The strategy is expected to bring substantial improvements by reducing carbon energy intensity, minimizing transport volumes, and generating added value at the mine site. Henderson believes that this approach could be a game-changer when compared to the traditional spodumene to chemicals processing route.

Construction cost for the Pilgangoora project.

The project’s estimated construction cost stands at $104.9 million, with a significant portion to be funded by a $20 million Federal Government grant. Calix’s CEO and managing director, Phil Hodgson, expressed his delight at the project’s progress. Both Pilbara Minerals and Calix are eager to demonstrate the potential of their electric calcination technology, which aims to substantially decrease the carbon footprint of Australian lithium production.

This joint venture’s success will highlight the possibility of leveraging Australia’s mineral and renewable energy resources along with innovative technology to ensure a dependable and sustainable supply of value-added critical minerals to the global market.

Pilbara Minerals benefits from having two processing facilities as it allows them to quickly respond to the growing demand in the lithium market by ramping up production. Additionally, this setup grants them the flexibility to customize their products according to customer requirements.

Their long-term strategy focuses on expanding and diversifying, aiming to maximize the value of the Pilgangoora Project and achieve full integration in the lithium raw materials and chemicals value chain

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