PLS shares near all-time high as lithium rebounds. Buy now or wait?

PLS Group Ltd (ASX: PLS) shares continue to attract strong buying interest as momentum builds across the lithium sector.

At the time of writing, the PLS share price is trading 0.51% higher at $4.885. The stock has now climbed almost 20% in the past month and is up more than 120% over the past year.

This move marks a sharp reversal from where things stood mid-last year. On 20 June 2025, PLS shares were changing hands at $1.07. Since then, the stock has surged roughly 350%, highlighting just how quickly sentiment has shifted.

With the share price near previous highs, is the recovery just getting started or already priced in?

Lithium prices have roared back

The biggest driver behind PLS’ rally has been the sharp recovery in lithium prices.

Lithium carbonate prices in China have surged to around CNY 159,500 per tonne. Prices are now more than 100% higher over the past year, according to recent market data. This marks a clear shift from the deep downturn that hit the sector in 2024 and early 2025.

Stronger demand from electric vehicles, grid storage, and battery manufacturing has combined with tighter supply conditions. Several high-cost producers were forced to cut output during the downturn, which has now left the market more sensitive to rising demand.

Strong assets are doing the heavy lifting

PLS operates the Pilgangoora lithium project in Western Australia, one of the largest hard rock lithium operations in the world. The company has also been expanding its downstream exposure and securing long-term partnerships across the battery supply chain.

This scale and strategic positioning mean investors tend to see PLS as one of the strongest ways to gain exposure to a lithium stock on the ASX. In turn, this has helped drive renewed buying interest.

How close is the stock to its peak?

PLS shares are now trading not far below their all-time high of $5.66, which was reached in late 2022 during the previous lithium boom.

On the technical side, the rally has become stretched. Momentum indicators such as the relative strength index (RSI) are pushing toward overbought territory. The share price is also trading well above key moving averages, which often increases the risk of short-term pullbacks.

Support now appears to sit around the $4.40 to $4.50 zone, while resistance remains near the $5.66 peak.

Foolish Takeaway

PLS has delivered an outstanding rebound as lithium prices recovered sharply. The long-term outlook for lithium demand remains attractive, and PLS is well placed within the sector.

However, after a 350% rise in a short period, the stock looks vulnerable to periods of consolidation or pullbacks. Investors should expect volatility from here, even if the broader lithium market conditions remain supportive.

The post PLS shares near all-time high as lithium rebounds. Buy now or wait? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.