Brazil beats WA as PLS boss warns mining crowd Australia risks losing its lithium edge despite record output and global expansion

When PLS chief executive Dale Henderson told the WA Mining Club’s November luncheon that it’s “easier to get things done in Brazil than in Western Australia,” the room went quiet for a moment.

It was a blunt statement from the head of one of WA’s great mining success stories — a company born from a handful of geologists in the Pilbara that has become one of the world’s largest independent lithium producers. But Henderson’s message was clear: Australia’s competitiveness is at risk if project approvals, energy costs, and infrastructure bottlenecks aren’t addressed.

Record Production, Sharper Margins

Henderson’s remarks came as PLS released its September 2025 Quarterly Activities Report, showing a company operating from a position of strength despite market volatility.

The Pilgangoora Operation delivered 224,800 tonnes of spodumene concentrate, a two percent increase from the June quarter, while sales reached 214,000 tonnes at an average realised price of US$742 per tonne (CIF China) — up 20 percent on a comparable SC6.0 basis.

Revenue rose 30 percent to A$251 million, underpinned by a 9 percent lift in lithium recoveries to 78.2 percent and a 13 percent reduction in unit operating costs to A$540 per tonne (FOB).

“The P1000 expansion has delivered exactly what it promised — stable output, improved efficiency, and stronger recoveries,” Henderson said. “It’s a testament to the capability of WA’s mining sector, but also a reminder of how vital it is to remain globally competitive.”

Brazil: A Faster Path to Progress

Henderson’s reference to Brazil wasn’t a throwaway line. PLS’s A$560 million acquisition of the Colina Project in Minas Gerais — a move that some considered counter-cyclical — is proving to be one of the company’s most strategic plays yet.

The Colina exploration program is progressing on schedule, with infill drilling and expansion work aimed at upgrading the resource and testing new targets. Results are expected by mid-2026.

“The name of the state literally means ‘General Mining,’” Henderson said. “They’ve got world-class service providers, hydro power at four to five cents per kilowatt hour, and a real hunger to get things done.”

PLS is also discovering the social dividend of its Brazilian expansion. “Salinas is a very poor town,” he said. “This mine means the world to them. Seeing that up close is powerful.”

Policy Friction at Home

Back home, Henderson joined a growing chorus of industry leaders concerned about Australia’s rising regulatory burden and energy costs.

“WA has led the world in resources, but we can lose that mantle if we don’t keep improving,” he warned. “We’ve got to be globally competitive — and that means lowering our cost base and cutting friction.”

Hydropower in Brazil costs a fraction of WA’s rates, where miners can pay 10 to 20 cents per kilowatt hour depending on source. Henderson urged governments to focus investment on shared infrastructure — ports and power — rather than subsidies or stockpiles.

“Lowering costs helps everyone,” he said. “Price supports risk backing the wrong projects.”

Integrated Growth Across the Value Chain

PLS’s quarterly report outlines a company balancing upstream discipline with downstream growth. Its Mid-Stream Demonstration Plant in WA remains on track for completion by December 2025, while the POSCO Pilbara Lithium Solution (P-PLS) joint venture in South Korea continues to produce battery-grade lithium hydroxide under moderated conditions amid global volatility.

P-PLS produced 4,813 tonnes of lithium hydroxide and sold 4,838 tonnes during the quarter. Although U.S. policy shifts under the Inflation Reduction Act have affected short-term demand, PLS has reduced its 2026 spodumene offtake allocation to ~150,000 tonnes, with flexibility to increase as markets stabilise.

The company’s joint feasibility study with Ganfeng Lithium has shortlisted several potential downstream processing sites, with final site selection now extended to 2027 to match market conditions.

Energy Storage: The ‘Awakening Giant’

While media headlines speculate about softening electric vehicle demand, Henderson said the data tells a different story.

“There’s no slowdown,” he said. “EV sales are still growing at 20 percent year-on-year — and what’s really exciting is the rise of energy storage systems.”

Battery packs for solar farms and data centres — known as ESS — are growing at 40 to 50 percent annually, now accounting for 17 percent of total lithium demand, up from just 3 percent five years ago.

“ESS could eclipse EV demand in time,” Henderson said. “We’re only at the beginning of that growth curve.”

Cash, Confidence, and Control

PLS ended the September quarter with A$852 million in cash and an undrawn A$625 million credit facility, even after spending A$78 million on capital projects. Operational cash flow totalled A$8 million, though Henderson noted that delayed receipts meant adjusted operational cash flow would have been closer to A$58 million.

“We’re in a strong position,” he said. “We’ve stayed disciplined, invested through the downturn, and we’re ready for the next cycle.”

A Warning and a Challenge

For all its growth, PLS’s story is also a cautionary one.

From surfboard sheds in Fremantle to lithium plants in Korea and exploration rigs in Brazil, the company has shown what WA miners can achieve on the world stage.

But Henderson’s message to the WA Mining Club was unambiguous: Australia’s edge is not guaranteed.

“We’ve got world-class assets and world-class people,” he said. “But competitiveness is earned, not inherited. If we want to lead in lithium for the next decade, we have to get faster, smarter, and more efficient — because the rest of the world already is.”