PLS notches up share price milestone as lithium rebound continues following bullish Ganfeng predictions

Shares in the ASX’s biggest pure play lithium miner have surpassed $4 for the first time in 18 months on the back of bullish predictions out of China.

The Dale Henderson-led PLS added 13¢ on Tuesday to finish trade at $4.09 — a monthly jump of 49 per cent and 85 per cent since the start of this year.

The share price ascent is causing headaches for investors betting on PLS’ demise, with almost 14 per cent of the company’s stock in the hands of short sellers — the third most for any ASX-listed company.

PLS’ latest growth spurt came after the chairman of major lithium supplier Ganfeng predicted demand for the battery commodity would surge 30 to 40 per cent next year.

Sentiment for lithium is rebounding after a slower-than-expected uptake of electrical vehicles combined with booming mine output from Africa, South America and China pulled prices down in 2024 and most of this year.

The benchmark value of the spodumene concentrate all of WA’s lithium miners produce is currently at $US1140 per tonne, having tumbled beneath $US600/t in June.

Rising EV sales in China, mine closures, and growing demand for large-scale battery storage to support data centres are credited as the reasons behind the recent resurgence.

Mineral Resources’ deal earlier this month to sell 30 per cent of its active WA lithium business for $1.2 billion, a figure well above analyst expectations, is widely seen as another positive sign for the industry.

Liontown Resources rose 2 per cent on Tuesday to $1.49, having gained 161 per cent so far this year. IGO bucked the trend to finish 1.6 per cent lower — it has only added 37.5 per cent to its value in 2025.

The broader share market had a rough Tuesday. The S&P/ASX 200 index finished down 1.9 per cent to 8469.10.