A new trial in Western Australia will test whether electric kiln technology can significantly reduce emissions from lithium processing, as Australia looks to capture more value from the growing electric vehicle battery market.
The project, backed by up to $38.1 million from the Australian Renewable Energy Agency, will see PLS Limited build and operate a demonstration plant at its Pilgangoora site in the Pilbara.
Lower-emissions processing in focus
The facility will trial electric kiln technology developed by Calix Limited, which targets calcination, one of the most energy-intensive stages of lithium refining. When powered by renewable energy, the process has the potential to cut emissions by more than 80 per cent.
Once operational, the plant is expected to produce around 3,000 tonnes of lithium phosphate per year, a key material used in lithium-ion batteries for electric vehicles and energy storage systems.
ARENA chief executive Darren Miller said the investment supports efforts to build local refining capability.
“Australia supplies more than half of the world’s spodumene but refines only a small portion at home. 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.”
Building local value in a global market
Despite being the world’s largest producer of spodumene, Australia exports most of its raw material for processing overseas. The trial aims to demonstrate a cleaner, domestic alternative that could strengthen the country’s position in the global battery supply chain.
PLS Managing Director and CEO Dale Henderson said the project represents a shift towards higher-value processing.
“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.”
“This funding highlights the Australian Government’s commitment to backing local innovation with the potential to significantly reduce emissions across the global lithium supply chain.”
“We’re proud to be progressing this technology at Pilgangoora with support from the Australian Government, demonstrating how Australia can play a leading role in the sustainable processing of critical energy minerals.”
Demand rising as EV market grows
The trial comes as global demand for lithium-ion batteries continues to increase, driven by the rapid uptake of electric vehicles and energy storage systems. The International Energy Agency estimates the battery market grew by 20 per cent in 2025 alone.
With fuel supply uncertainty and rising energy costs accelerating the shift to electrification, projects like this are expected to play a key role in reducing emissions across the battery supply chain while supporting Australia’s ambitions to expand its role beyond raw material exports.
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