The Pilbara Minerals (ASX:PLS) share price has leapt 12% in 4 days. What's happening?

The company's shares have been on a hot streak lately.

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Key points
  • Pilbara Minerals shares are up again today, trading 2.86% higher at $2.88 apiece
  • The price of lithium carbonate has surged in the past year, up 600%
  • Pilbara Minerals reported a significant increase in shipments of spodumene concentrate in its interim results

The Pilbara Minerals Ltd (ASX: PLS) share price has been accelerating despite the company keeping quiet this month.

In fact, in the last 4 days, the ASX-listed lithium player shares have powered ahead by 12%.

At the time of writing, Pilbara Minerals shares are up 2.86% to $2.88.

Woman jumping for joy at great news with wide open country around her.

Image source: Getty Images

Why is Pilbara Minerals heavily being traded?

As the largest ASX-listed lithium player, it appears investors have been taking advantage of the hype surrounding the lithium revolution.

On most days, the company's shares are swapping hands anywhere between 20 million and 35 million shares. However, on 18 March, Pilbara Minerals saw more than 58.4 million shares being exchanged.

With no company announcements, a lot of attention has turned to the incredible rise in the spot price for lithium. Over the past year alone, lithium carbonate has rocketed almost 600% in value.

The battery-making ingredient is expected to be adopted across a number of industries, notably the global transition to electric vehicles.

Furthermore, Pilbara Minerals released its half-year results on 23 February, highlighting a significant increase in shipments of spodumene concentrate. This was underpinned by improved market conditions and robust operational performance at its Pilgangoora Lithium-Tantalum Operations.

A couple of brokers weighed in on the company's share price following its interim financial scorecard.

Analysts at Macquarie slashed its 12-month price target by 5% to $3.50 for Pilbara Minerals shares. 

Citi also reduced its rating by 5.4% to $3.50.

Based on the current share price, this implies an upside of around 22% for investors.

About the Pilbara Minerals share price

Pilbara Minerals shares have raced 170% higher since this time last year.

The company's share price reached an all-time high of $3.89 in mid-January before treading lower.

Pilbara Minerals presides a market capitalisation of roughly $8.56 billion and has approximately 2.98 billion shares on its books.

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 Bruce Jackson.

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