One of the biggest movers on the market today was the Pilbara Minerals Ltd (ASX: PLS) share price.
The lithium miner's shares finished the day 11.5% higher at 48.5 cents.
Why did its shares rocket higher?
As well as receiving a boost from news that China plans to ban the production and sale of internal combustion engine vehicles in the not too distant future, Pilbara released a positive announcement related to its Pilgangoora Lithium-Tantalum Project in Western Australia.
According to the release, the miner is in line with its expedited construction schedule and continues to target the commencement of shipments of spodumene concentrate in the second quarter of 2018.
The final piece of the puzzle was the awarding of its final contract to Australian-owned Contract Power Group for the site power station construction and ongoing operations.
This means that Australia could have another low-cost lithium producer generating revenue within the next six months.
Which certainly is great timing. Management believes that demand in lithium market is not only robust, but also strengthening.
Should you invest?
While my first preference continues to be Galaxy Resources Limited (ASX: GXY), I do believe that Pilbara will be in a great position to profit when shipments commence.
Especially considering demand for lithium is expected to grow substantially over the next decade as electric vehicle and renewable energy adoption intensifies.
In light of this, I would class Pilbara as a high risk buy.
