PLS signs 20-year power supply deal with Fortescue's FMG Clean Energy
Australia's PLS Group agreed a 20-year power deal with FMG Clean Energy for its Pilgangoora lithium mine, expecting lower unit operating costs.
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what happened
Australia's PLS Group, the country's largest independent lithium producer, has signed a 20-year power-purchase deal with FMG Clean Energy, a unit of iron ore miner Fortescue, Reuters reported.
The agreement will meet rising power needs at Pilgangoora under the P2000 expansion. From 2029, FMG is to supply at least 325 gigawatt-hours of electricity a year, subject to regulatory approvals and the building of required infrastructure. PLS plans to spend about A$150 million between 2027 and 2029 on grid connections and power upgrades.
The company expects unit operating costs to fall by A$15 to A$20 per tonne, and power-related emissions intensity to drop by up to 80% from 2023 levels by 2030.
why it matters
For lithium investors, the deal signals lower costs at one of the largest producers. PLS shares rose as much as 8.3% to A$3.12, their highest since October 16, after the announcement. The company also raised its 2027 capex forecast to A$1.13–1.20 billion.
market impact
PLS shares: expected lower costs at Pilgangoora support the stock
- PLS shares pressure up — expected lower operating costs at the mine lifted the stock that day
tags
instruments
sources
- Australia's PLS signs 20-year power pact with Fortescue unit for Pilgangoora mine — Reuters, 28 October 2026 at 00:37 UTC
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