Despite surging more than 360% in just 12 months, PLS Group Ltd (ASX: PLS) shares are in the red on Friday.
At the time of writing, the PLS share price is down 4.21% to $5.91. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.80% lower at 8,838 points.
The latest fall follows a new update on one of the lithium miner's key growth projects.
Today's move comes after such a huge run, with the stock still up around 40% since the start of 2026.
So, what has investors buying again today?
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PLS backs next Pilgangoora expansion
According to the release, PLS has approved early spending on its P2000 Project at Pilgangoora, which it describes as the world's largest independent hard-rock lithium operation.
The project is looking at a possible expansion of Pilgangoora's concentrate production capacity to around 2 million tonnes a year.
But, this isn't the full green light just yet.
The feasibility study is still being worked through, with the results expected in the December quarter of 2026.
PLS also hasn't made a final investment decision (FID) at this stage, with that call still depending on the study, funding capacity, and market conditions.
Nevertheless, the company is still moving early on some parts of the project so it can keep things progressing.
What is the money being spent on?
PLS has approved up to around $175 million of pre-FID spending.
A large chunk will be used for processing plant procurement and engineering. This includes early work on things such as crushing, ore sorting, magnetic separation, flotation, and filtering equipment.
While these aren't small items, PLS said they are the main schedule risk for first ore.
The company will also spend money on early site works and operational preparation, including clearing part of the proposed operating area and setting up key facilities.
In addition, there's money going towards Wodgina Road East infrastructure and seasonal road works.
PLS said bringing these jobs forward will allow it to use the dry season and reduce access risks before making the FID.
Why is PLS doing this now?
The early spending is designed to protect the project schedule and keep PLS' options open.
Managing director and CEO Dale Henderson said P2000 could become the next major growth phase at Pilgangoora and further strengthen the company's position among the world's leading lithium producers.
He also noted that the spending gives PLS more flexibility and allows it to respond to future demand while keeping control over any FID.
