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The Piedmont Lithium (ASX:PLL) share price just rocketed 32% to a record high

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The Piedmont Lithium Ltd (ASX: PLL) share price was on fire again on Wednesday and stormed notably higher.

At one stage, the US-based lithium miner’s shares were up as much as 32% to a new record high of 82 cents.

The Piedmont Lithium share price ultimately closed the day 28% higher at 80 cents. This means its shares are now up 515% from 13 cents a year ago.

Why did the Piedmont Lithium share price rocket higher?

Investors were buying Piedmont Lithium shares despite there being no news out of the company today.

However, a number of lithium miners were on the charge today as investor interest in the sector continues to heat up.

For example, the Vulcan Energy Resources Ltd (ASX: VUL) share price jumped 20% and the Lake Resources N.L. (ASX: LKE) share price stormed 55% higher.

What’s been happening at Piedmont Lithium?

It certainly has been a busy few months for Piedmont Lithium.

The most recent development out of the company came earlier this month when it announced an investment into fellow lithium miner Sayona Mining Ltd (ASX: SYA).

As part of the deal, the two companies have signed a strategic partnership that will accelerate the development of Sayona’s lithium projects in Québec, Canada.

The two companies have also agreed a binding offtake arrangement under which Piedmont Lithium will acquire up to 60,000 tonne per annum of spodumene concentrate or 50% of Sayona Québec’s production, whichever is greater.

That spodumene concentrate could end up being put into the batteries of Tesla vehicles. Late last year it signed a binding sales agreement with Tesla.

The two parties have signed an initial five-year term for the supply of spodumene concentrate (SC6) from Piedmont Lithium’s North Carolina deposit. The deal also includes the option for a further five-year extension by mutual agreement.

What’s next?

The next major milestone to keep your eyes open for is the definitive feasibility study (DFS) at the Piedmont Lithium Project.

This is scheduled to be complete in the middle of the calendar year. The company’s President and CEO, Keith D. Phillips, is optimistic that it is sitting atop an asset that will benefit greatly from the electric vehicle (EV) revolution.

He said: “The Carolina Tin-Spodumene Belt is one of the world’s most prolific lithium belts and we are hopeful that we will ultimately delineate North America’s largest spodumene resource, ideally located in North Carolina to power North America’s clean energy storage and EV revolution.”

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Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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