The Piedmont Lithium Inc (ASX: PLL) share price has been a strong performer on Monday.
In morning trade, the lithium developer's shares are up 8% to 79.5 cents.
This latest gain means the Piedmont Lithium share price is up 115% in 2021.
Why is the Piedmont Lithium share price charging higher?
Investors have been bidding the Piedmont Lithium share price higher today following the release of a positive announcement.
According to the release, the company's 25%-owned Sayona Quebec business has completed the acquisition of North American Lithium (NAL) for C$196.2 million. This includes a cash consideration of C$94 million.
Sayona Quebec is a joint venture between Piedmont Lithium and Sayona Mining Ltd (ASX: SYA), with the latter owning the remaining 75%.
What is North American Lithium?
North American Lithium is a Canadian industrial minerals mining company located in Abitibi, near Val d'Or, Quebec.
This project is under development with commissioning of an open pit lithium carbonate mine and processing plant nearing completion. Once operational, the mine is expected to produce approximately 23,000 tonnes of battery grade lithium carbonate on an annualised basis.
Its acquisition now paves the way for the creation of Abitibi lithium hub. This will see the integration of Sayona Mining's Authier and Tansim Lithium Projects with NAL to become Quebec's leading lithium producer.
Sayona Mining's Managing Director, Brett Lynch, said: "We are committed to swiftly developing a profitable and sustainable business at NAL, delivering new jobs and investment and maximising the benefits of its existing facilities to make it the centre of our Abitibi lithium hub."
"Demand for lithium to power North America's EV and battery storage revolution continues to accelerate. The timing is perfect and we look forward to realising this opportunity, working closely with our partner, Piedmont and all other key stakeholders including Investissement Québec, as we help drive Québec's clean energy future," he added.
This sentiment was echoed over at Piedmont Lithium. Its President and CEO, Keith D. Phillips, commented: "We are very pleased to have partnered with Sayona in the consolidation of the spodumene resources in the Abitibi region of Quebec, with Sayona Quebec now comprising a large Canadian lithium resource base."
"NAL's concentrate operations are amenable to a relatively rapid restart and we will work with Sayona to develop suitable plans in that regard. We are also evaluating a variety of options for production of lithium hydroxide in Quebec and will update the market further as our plans crystalize. Piedmont intends to become North America's leading lithium hydroxide producer and our Quebec investments are an ideal complement to our flagship Carolina Lithium Project in Gaston County, North Carolina," he added.
