The Pilbara Minerals share price has surged 15% in 2 weeks. What’s happening?

It’s been a good fortnight for the ASX lithium miner…

| More on:
a man sits on his sofa loong at his phone and raises a fist to the air in happy celebration.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Pilbara Minerals shares are charging 15% higher on the back of a couple of positive company announcements in recent weeks
  • Investors have taken advantage of the recent share price weakness after Pilbara Minerals received a $20 million grant
  • The hype surrounding the lithium revolution is also likely having an impact on the company's shares

The Pilbara Minerals Ltd (ASX: PLS) share price has been on the move in the last two weeks, helped by the company’s latest announcements.

Since the closing bell on May 10, the lithium miner’s shares are up 15% on the back of renewed investor optimism.

At the time of writing, Pilbara Minerals shares are powering ahead today by 3.91% to $2.92.

Why are Pilbara Minerals shares on the rise?

As the largest ASX-listed lithium player, investors have been taking advantage of the recent Pilbara Minerals share price weakness.

Last week, the company, along with its partner Calix Ltd (ASX: CXL), was awarded a $20 million grant from the Australian Government under the Modern Manufacturing Initiative (MMI).

The funds are set to be used to support the further development and demonstration of the proposed mid-stream project.

Pilbara Minerals and Calix are aiming to execute a formal joint venture agreement by early Q3 2022.

Furthermore, a final investment decision on the project is to be decided by late 2022 to early 2023.

This led to Pilbara shares rising 5% on the day of the release, and 2.56% the day after.

In addition, the company released a corporate presentation highlighting the lithium boom along with its strategy to expand production capacity.

This is namely for its Pilgangoora Operation in which management hopes to achieve 560,000 to 580,000 tonnes per annum of spodumene concentrate from the upcoming September quarter.

A lot of attention has been on the incredible rise in the spot price for lithium. Over the past year alone, lithium carbonate has rocketed almost 400% in value.

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

About the Pilbara Minerals share price

Over the past 12 months, the Pilbara Minerals share price has accelerated by 170%. However, year to date it is down 9%.

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 $8.36 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 Scott Phillips.

More on Share Gainers

A boy leaps and flaps his arms as he tries to fly with some birds on the shoreline of the beach.
Share Gainers

5 best ASX All Ordinaries shares in June

Why did these ASX shares fly while the All Ords dropped?

Read more »

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Share Gainers

Why Austal, Mesoblast, Regis Resources, and Zip shares are charging higher

These ASX shares are ending the week strongly...

Read more »

Three rockets heading to space
Share Gainers

These 3 ASX All Ords shares are delivering double-digit gains on Friday

These stocks have each surged more than 20% today.

Read more »

a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.

Why is the Northern Star share price more green than gold on Friday?

It's proving a good day so far for the gold miner, despite the price of the yellow metal falling.

Read more »

Rising arrow on a blue graph symbolising a rising share price.
Share Gainers

Why is the Mesoblast share price leaping 19% today?

Mesoblast reverses course today – for now, anyway.

Read more »

a group of young people dance together with their hands in the air, moving to music.
Share Gainers

What’s propelling the MoneyMe share price 28% higher today?

Investors have rewarded the company handsomely today.

Read more »

a man and a woman sitting in a technology related work environment high five each other while the man wears headphones around his heck and the woman sits in front of a laptop.
Share Gainers

Domestic bliss: Praemium share price surges 18% after international business split

The tech company will now focus on the domestic market.

Read more »

Young woman in yellow striped top with laptop raises arm in victory
Share Gainers

These were the best performing ASX 200 shares in June

These ASX 200 shares defied the market selloff and stormed higher...

Read more »