Top ASX stock Pilbara Minerals to benefit from higher spodumene prices
Realised spodumene prices for Pilbara Minerals have improved over recent quarters and as lithium prices continue to rise, expectations of further upside in the upcoming quarters has strengthened investor sentiment.
Pilbara Minerals Limited (ASX: PLS)
is set to benefit more from higher spodumene prices as the lithium market has improved a lot after a prolonged downturn.
PLS shares have seen an impressive rise alongside broader optimism in lithium markets which is driven by stronger lithium carbonate prices in China and improved sentiment across the battery materials sector.
During the September 2025 quarter, the company reported an average realised spodumene price of US$742 per tonne compared to around US$599 per tonne in the June 2025 quarter which represents a clear improvement in such a short span of time.
Quarterly revenue increased by 30% to $251 million supported by higher realised prices and steady sales volumes of 214.0 kt from the Pilgangoora operation.
Operational performance also improved during the quarter as unit operating costs declined by 13% quarter-on-quarter to $540 per tonne which highlights the impact of efficiency initiatives and higher plant recoveries.
Lithium industry sentiment has improved with benchmark lithium prices more than doubling from the lows of the previous bear market which has helped with stronger price realisation for companies such as PLS.
Spodumene spot prices have risen even more after this quarter which reinforces expectations that realised pricing will continue to trend higher into the December 2025 quarter.
PLS ended the September 2025 quarter with $852 million in cash along with an undrawn credit facility of $625 million which provides flexibility to manage the cycle and fund growth opportunities.
A quarterly update is expected later in January 2026 which is likely to include updated realised price data and provide further clarity on how recent market strength is flowing through to earnings.
With the help of improving lithium prices, disciplined cost control and the significant production scale at Pilgangoora, PLS will likely do well in FY26.
(Source: Company Announcements)
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