Why is the Piedmont Lithium share price rocketing 15% on Monday?

What's going on with Piedmont shares today?

Key points
  • Piedmont shares leap 15.44% to 91.2 cents despite no company announcements 
  • News surrounding the US government signing a US$430 million (A$604 million) bill promoting EV adoption is driving lithium shares higher today 
  • Piedmont is a leading diversified developer of lithium resources critical to the US electric vehicle supply chain 

The Piedmont Lithium Inc (ASX: PLL) share price is powering ahead during late morning trade.

This comes despite the company not making any price-sensitive announcements on the ASX since its North American Lithium project update.

At the time of writing, the Australian lithium miner's shares are fetching for 91.2 cents apiece, up 15.44%.

Rocket powering up and symbolising a rising share price.

Image source: Getty Images

What's driving Piedmont shares higher today?

Investors are buying up the Piedmont share price following positive news surrounding the company.

According to ABC News, the US House of Representatives has approved a US$430 million (A$604 million) bill tackling climate change.

The package is aimed at providing long-term federal subsidies for investors seeking to transition into renewable energy products. This includes receiving tax credits for wind and solar and new credits for energy storage, biogas and hydrogen.

In particular, US consumers who buy an electric vehicle built in North America will be eligible for a $7,500 tax credit.

US President Joe Biden is expected to sign the bill into law sometime next week.

US House of Representatives speaker Nancy Pelosi illustrates the legislation as a "robust cost-cutting package that meets the moment, ensuring that our families thrive and that our planet survives."

The historic win has put a number of lithium producers who are based in North America into the spotlight.

As such, shares in Sayona Mining Ltd (ASX: SYA) and Anson Resources Ltd (ASX: ASN) are up 5.46% and 3.33%, respectively.

About the Piedmont share price

After hitting a 52-week low of 48.5 cents on 15 July, the Piedmont share price has surged by 88%.

When looking at year to date, the company's shares are up 24% for the period.

Based on valuation grounds, Piedmont commands a market capitalisation of approximately $416.78 million.

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.

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