The Pilbara Minerals Ltd (ASX: PLS) share price is enjoying a welcome lift today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $2.20. In late morning trade on Wednesday, shares are changing hands for $2.30 apiece, up 4.5%.
For some context, the ASX 200 is up 0.35% at this same time.
This outperformance of the Pilbara Minerals share price comes on the heels of a major funding announcement on Tuesday from the Western Australian government.
Here's what happening.
Pilbara Minerals share price leaps amid new government funding
The Pilbara Minerals share price looks to be catching some extra tailwinds after the Cook Labor government announced it will tip in $34 million via its Investment Attraction Fund to three clean energy projects to help drive new job opportunities across the state.
Among the recipients, the government allocated Pilbara Minerals $15 million for its mid-stream demonstration plant at the miner's Pilgangoora lithium operation. The plant incorporates an industrial-scale electric spodumene calciner, which converts critical mineral concentrates into high-value battery precursors.
The demonstration plant project is a joint venture between Pilbara Minerals and Calix Limited.
"WA is on track to become a global clean energy powerhouse, to keep our economy for the long term and create the jobs of the future in our state," Western Australia Premier Roger Cook said.
"These projects are at the cutting edge of the global energy transition, whether it's reducing emissions from steel or producing the batteries the world needs for a clean energy future."
The Pilbara Minerals share price took a tumble in October, with shares under additional pressure after the miner and Calix announced that construction works at the demonstration plan would be paused until lithium market conditions were more supportive "or further government support for project continuation could be secured".
What did management say?
Commenting on the $15 million in government funding now secured, Pilbara Minerals CEO Dale Henderson said:
This is a great demonstration of the WA government's commitment to supporting downstream onshore processing and innovation through supporting two Australian companies in a project which could meaningfully reduce carbon emissions of the global lithium industry.
As for the future of the project, Henderson noted, "This funding boost goes a long way to supporting the delivery of the mid-stream demonstration plant project and will enable the JV to consider recommencement of the project."
Henderson concluded:
We remain fully supportive of the mid-stream strategy and our joint venture, recognising the project's potential to transform the lithium supply chain through lower emissions and value-adding processing.
The Pilbara Minerals share price is down 36% over 12 months, with shares up 4.5% so far in 2025.
