PLS Group (ASX:PLS) Surges to 52-Week High After 167% Lithium Rally: Buy or Wait?

PLS Group Soars as Lithium Recovery Gains Momentum

PLS Group (ASX: PLS), formerly known as Pilbara Minerals, hit a fresh 52-week high of A$4.94 this week as lithium prices surged to their best levels since late 2023. The rally started after China said it would remove tax rebates for battery exports. Since mid-2025, lithium prices have jumped 167% from their lows. For investors who watched PLS climb from just A$1.07 a few months ago, the big question now is whether there’s still upside or if it’s time to take profits.

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China’s Tax Change Is a Big Deal for Lithium

On January 9, China announced it will phase out export tax rebates for batteries. The rebate drops from 9% to 6% in April, then disappears completely by January 2027. This matters because these rebates helped Chinese battery makers sell cheaply overseas for years.

The market reacted fast. Lithium carbonate futures jumped 9% in one day to hit 156,060 yuan per tonne (about US$21,650). That’s the highest price since November 2023. Without the rebate, Chinese export costs go up by 6-9%. This levels the playing field for producers outside China, including Australian miners like PLS Group.

At the same time, China is cracking down on the brutal price wars that crushed lithium profits in 2023 and 2024. CATL, the world’s biggest battery maker, has also paused production at its high-cost Jianxiawo mine. Less supply plus growing demand from EVs and battery storage means prices could stay higher for longer. We believe the days of super-cheap lithium are likely behind us.

Why PLS Group Is Well Placed to Benefit

PLS Group stands out as one of the strongest players in this recovery. The company sits on around A$850 million in cash with total available funds of A$1.5 billion. This gives management plenty of room to invest in growth or ride out any bumps ahead.

On the operations side, PLS is targeting production of 820,000-870,000 tonnes in FY26 at costs of just A$560-600 per tonne. These are among the lowest costs in the industry. The company’s Pilgangoora mine in Western Australia is one of the world’s largest hard-rock lithium deposits, with a 32-year mine life. In simple terms, PLS can produce lithium profitably even if prices pull back from current highs.

The Investor’s Takeaway

The bull case for PLS Group is clear: low costs, a strong balance sheet, and improving lithium prices. However, the stock has already rallied about 350% from its 52-week low. At A$4.86, much of the good news appears priced in.

Our view: Long-term investors can still hold PLS as a quality lithium play. But after such a big run, new buyers might want to wait for a dip to the A$4.00-A$4.20 range for a better entry point. For those sitting on big gains, trimming some shares to lock in profits is a sensible move. The lithium recovery looks real, but patience could pay off for those looking to add.