PLS Pays A$11.4M to Acquire Calix Stake, Gains 80% Royalties on Licensing

• PLS acquires Calix’s interest in Mid-Stream Demonstration Plant for A$11.4 million
• PLS assumes full ownership, funding, and operational responsibility
• Calix grants PLS a perpetual royalty-free licence for calciner technology in lithium processing
• Revised royalty split for third-party licensing: 80% PLS, 20% Calix
• Calix to provide paid technical support under a new services agreement

Strategic Shift in Lithium Processing Partnership

PLS Group Limited and Calix Limited have agreed to restructure their Mid-Stream Demonstration Plant Project, a key initiative aimed at advancing lithium processing technology. Under a binding term sheet announced on 19 February 2026, PLS will acquire Calix’s ownership interest in the joint venture for A$11.4 million, effectively consolidating full ownership and operational control of the Demonstration Plant.

This move aligns ownership with capital commitment and operational responsibility, streamlining decision-making and execution. PLS’s acquisition reflects a strategic evolution designed to simplify governance and accelerate commercialisation in the rapidly growing lithium market.

Royalty-Free Licence and Revised Commercial Terms

As part of the agreement, Calix will grant PLS a perpetual royalty-free licence to use its patented calciner technology and associated intellectual property for all primary lithium processing applications at plants owned or co-owned by PLS. This licence secures PLS’s long-term access to potentially critical mid-stream processing technology, supporting disciplined capital allocation and operational flexibility.

For third-party licensing of Calix’s technology in lithium processing, the royalty split has been revised to 80% in favour of PLS and 20% to Calix, reflecting PLS’s assumption of full funding and operational duties. Calix will continue to provide paid technical support under a new services agreement, maintaining a collaborative relationship while shifting to a capital-light model.

Implications for Both Companies

For PLS, this consolidation offers greater operational agility to manage the Demonstration Plant alongside its flagship Pilgangoora Operation and other lithium assets. It also positions PLS to better respond to market conditions and customer needs as it advances the commercialisation of mid-stream lithium processing technology.

Calix benefits by releasing capital previously tied up in the project and aligning the commercialisation of its technology with its broader licensing-focused business model. The restructure enables Calix to accelerate deployment of its calciner technology across multiple industries while continuing to support PLS through technical services.

Looking Ahead

Both companies remain committed to the long-term commercialisation of the technology for global primary lithium processing. PLS plans to update the market on the commissioning progress of the Demonstration Plant in the coming months. The successful demonstration and deployment of this technology could have significant implications for the lithium supply chain, potentially reducing carbon intensity and adding value within Australia’s critical minerals sector.

Completion of the transaction is subject to final documentation by 20 April 2026, with either party able to terminate if agreements are not executed by then. The market will be watching closely as this partnership evolves and the technology moves closer to commercial reality.

Bottom Line?

PLS’s full ownership and royalty-free licence mark a pivotal step in lithium processing innovation, with commercialisation progress set to shape the sector’s future.

Questions in the middle?

• How will PLS’s full control impact the speed and scale of the Demonstration Plant’s commercial rollout?
• What are the potential market opportunities for third-party licensing under the new royalty split?
• Could Calix’s capital-light model accelerate its technology adoption in other mineral processing sectors?