The Australian Renewable Energy Agency (ARENA) is providing up to AU$38.1 million in funding for a groundbreaking low-emissions lithium refining plant in Western Australia.
The grant was awarded to PLS Group Ltd. (PLS) and will support a first-of-its-kind demonstration plant at the Pilgangoora Operation. The project aims to revolutionise how spodumene, the raw mineral used to create lithium, is processed, shifting the energy-heavy industry toward a more sustainable future.
The project will trial Calix Ltd.’s innovative electric-kiln technology.
Calcination, the process of heating minerals to high temperatures, is traditionally one of the most carbon-intensive stages of lithium refining.
By using electric kilns powered by renewable energy, the project has the potential to slash emissions by more than 80 per cent compared to conventional fossil-fuel methods.
ARENA CEO Darren Miller said the project supports the agency’s aim to accelerate low emissions processing technologies.
“Australia supplies more than half of the world’s spodumene but refines only a small portion at home,” Miller said.
“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 slated to produce roughly 3,000 tonnes of lithium phosphate annually. This high-value material is a critical component for lithium-ion batteries used in electric vehicles and large-scale energy storage.
PLS CEO Dale Henderson said the project is about capturing more of the economic pie within Australian borders.
“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,” Henderson said.
The project marks ARENA’s second major investment in critical minerals since the sector was added to its priorities in 2025.
By demonstrating that high-purity lithium can be refined with a significantly lower carbon footprint, the Pilbara facility is expected to set a new global benchmark for the sustainable processing of battery minerals.
