Why is the Piedmont Lithium share price popping 6% on Thursday?

Is this helping to boost this ASX lithium stock today?

| More on:

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
  • The Piedmont Lithium share price is surging around 6% to trade at 91.5 cents today
  • There's been no news from the company to explain its gains. Though, its joined in the green by many of its ASX lithium peers.
  • Additionally, the company's CEO recently warned that a shortage of lithium could see demand for electric vehicles unable to be filled

The Piedmont Lithium Inc (ASX: PLL) share price is rocketing higher on Thursday despite the company's silence.

Though, it's been a big week for ASX lithium shares, perhaps partly due to comments made by the company's boss.

The Piedmont Lithium share price is 91.5 cents right now. That marks a 5.78% gain on Thursday.

For context, the All Ordinaries Index (ASX: XAO) is up 1.61% right now.

So, what might be boosting the US-focused lithium developer's stock? Let's take a look.

A woman smiles as she powers up her electric car using a fast charger.

Image source: Getty Images

What's driving the Piedmont Lithium share price today?

ASX lithium share Piedmont Lithium is joining many of its peers in the green on Thursday.

Indeed, the S&P/ASX 200 Materials Index (ASX: XMJ) is one of the S&P/ASX 200 Index (ASX: XJO)'s best-performing sectors today. It's gaining 2.4% at the time of writing compared to the index's 1.6% gain. And lithium shares are leading its gains for no obvious reason. Though, there's been plenty to drive sentiment for the sector this week.

Firstly, experts, including Piedmont Lithium CEO Keith Phillips, have voiced concerns supply shortages of the material could continue for years.

Speaking to Yahoo Finance earlier this week, Phillips said the world might not to able to produce enough lithium to sate some aspirational electric vehicle take-up targets. He continued:

There's going to be a real crunch to get the material. We don't have enough in the world to turn that much [lithium] production [to meet some 2035 targets].

The world has changed… We're now in an era where everyone's going to want an electric car. The car companies can't make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.

On that note, Australians have been snapping up electric vehicles at record rates.

According to data from the Federal Chamber of Automotive Industries, released on Monday, a record 4.4% of all cars sold in Australia in August were electric. Tesla Inc (NASDAQ: TSLA)'s Model 3 was Australia's fourth best-selling car last month.

Looking further back, 2% of cars sold in the country so far this year are battery powered.

Such happenings may have driven sentiment for ASX lithium shares this week and, in turn, could be boosting the Piedmont Lithium share price today.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 Materials Shares

Happy businessman fist pumping while looking at a tablet.
Materials Shares

Why Liontown shares could be dirt cheap

Bell Potter has been running the rule over this lithium miner.

Read more »

Man smiling ahead while working on his MacBook.
Materials Shares

Why PLS shares rocketed 30% in August

This lithium giant delivered an incredible FY 2026 result last month.

Read more »

Army man and woman on digital devices.
Materials Shares

IperionX wins US Army contract to ramp up titanium production

The company has won a second US Army contract, securing fresh funding for industrial-scale titanium production and strengthening its American…

Read more »

happy group of people
Earnings Results

Black Cat Syndicate posts record FY26 earnings and profit turnaround

Black Cat Syndicate reports record FY26 results, including a $374 million revenue surge and $86 million profit turnaround on strong…

Read more »

A man checks his phone next to an electric vehicle charging station with his electric vehicle parked in the charging bay.
Earnings Results

Elevra Lithium posts FY26 profit rebound and funds expansion

Elevra Lithium jumped to a US$44m profit in FY26 as it advanced expansion and merger integration.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Materials Shares

St George Mining announces rare earths processing centre in Brazil

The company has signed a landmark agreement to establish a rare earths processing hub in Brazil.

Read more »

Worried man watching his smartphone.
Earnings Results

29Metals share price drops 7%: Half-year earnings reveal $34.8m loss, revenue up

The copper miner swung to a $34.8 million loss and did not declare a dividend.

Read more »

Two miners at a mine site on their tablets, with mining machinery behind them.
Materials Shares

Develop Global drills deeper at Woodlawn, targeting big mine life growth

The company unveils high-grade copper-zinc and precious metal drilling results at Woodlawn, supporting its target to grow mine life to…

Read more »