Why is this ASX lithium stock rocketing 32% today?

Investors are cheering on a big announcement.

| More on:
A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy

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

Piedmont Lithium Inc (ASX: PLL) shares are catching the eye on Monday with a very strong gain.

In morning trade, the ASX lithium stock is up 32% to 27 cents.

Why is this ASX lithium stock rocketing?

Investors have been buying Piedmont Lithium shares this morning in response to a major announcement relating to its Carolina Lithium project in the United States.

According to the release, the North Carolina Department of Environmental Quality's (NCDEQ) Division of Energy, Mineral, and Land Resources (DEMLR) has issued an approval of its mining permit for the construction, operation, and reclamation of the proposed lithium project.

The release notes that DEMLR provided the permit approval following a thorough review of the application submitted by Piedmont Lithium all the way back in August 2021.

This news will no doubt be a very big relief for shareholders. That's because there has previously been speculation that it wouldn't be approved after locals fought hard against it.

'An exciting day'

The ASX lithium stock's president and CEO, Keith Phillips, appeared to be delighted with the news. He said:

This is an exciting day for all of us at Piedmont Lithium. I would like to thank the leadership and staff at NCDEQ and DEMLR for their diligence in the process, as well as the members of our team who worked rigorously for more than two and a half years to ensure that every aspect of the Project met the state's high standards for approval.

Phillips also highlights that the project is well-positioned in the current environment thanks to its low costs. He also believes the project is highly strategic. The CEO adds:

We plan to develop Carolina Lithium as one of the lowest cost, most sustainable lithium hydroxide operations in the world, and as a critical part of the American electric vehicle supply chain. The Project is expected to contribute billions of dollars of economic output and several hundred jobs to Gaston County and North Carolina's growing electrification economy.

Carolina Lithium is a highly strategic project. Located within both the renowned Carolina Tin-Spodumene Belt and the U.S. Battery Belt, the Project is being designed as a fully integrated mining, spodumene concentrate, and lithium hydroxide manufacturing operation. There are currently no such integrated sites operating anywhere in the world, and the economic and environmental advantages of this strategy are compelling.

Despite today's strong gain, this ASX lithium stock remains down by two-thirds over the last 12 months.

Motley Fool contributor James Mickleboro 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 Materials Shares

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Share Fallers

Why did the Core Lithium share price just crash 6%?

Investors are bidding down the Core Lithium share price today.

Read more »

Man with rocket wings which have flames coming out of them.
Materials Shares

Bell Potter says this speculative ASX stock could rise 200%+

This stock could more than triple in value according to the broker. But it is only suitable for high risk…

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Share Gainers

Guess which ASX lithium share just leapt 13% on major financing news!

Investors are bidding up the ASX lithium share on the back of major financing news.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Materials Shares

'Tip of the iceberg': Why this ASX lithium stock has exploded 200% in a week

What is getting investors excited this week? Let's find out.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Market News

Patriot Battery Metals share price rockets 11% on new lithium drilling results

The ASX lithium stock has more than recovered its share price losses from yesterday.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

How much passive income would I make from 300 BHP shares?

Is this mining giant a good source of income? Let's see what analysts are predicting.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Could Liontown shares roar 30%+ higher?

Is this beaten-down lithium developer about to roar higher? Let's see what Bell Potter is saying.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Guess which ASX lithium stock dived 9% after parting ways with Albemarle

A promising agreement has been terminated but management remains confident.

Read more »