Piedmont Lithium (NASDAQ:PLL) has investors’ attention on Thursday morning after the miner boosted its lithium resources by 40%. The shares of PLL stock look set to regain this week’s losses, popping more than 4.5% in pre-market trading.
An announcement from management updated the company’s global mineral resource estimate to 39.2 metric tonnes of lithium at an average grade of 1.09%.
“Increasing the scale of our North Carolina mineral resource to 39.2 Mt at 1.09% Li2O establishes our asset as one of the largest spodumene resources in North America — and the only one in the United States,” said Keith Phillips, Piedmont’s president and CEO.
The resource ideally positions Piedmont in the burgeoning clean energy economy and a U.S.-based EV supply chain, Phillips noted. In September, Piedmont announced it had inked a deal to supply Tesla (NASDAQ:TSLA) with lithium from the North Carolina operation.
The timing couldn’t be better after lithium stocks got a boost last week from President Joe Biden’s plans to upgrade the U.S.’s infrastructure. With the White House pushing down on the pedal to accelerate the EV market in the U.S., it’s no surprise that lithium stocks are on the move.
PLL Stock Gets Charge From Growing EV Demand
Lithium batteries are used to power EVs instead of traditional fuels, such as gas or diesel. Lithium is much lighter than the lead and nickel-based batteries used in the past. Rechargeable Li-ion batteries enabled the mobile communications we take for granted today, and they are powering the electric car revolution.
PLL stock investors have recognized that it’s hard to look past the sheer demand for the material. The global energy storage market is projected to be worth $546 billion by 2035. That is a lot of lithium-ion batteries, noted InvestorPlace analyst . He sees PLL well-positioned for long-term growth. in October
InvestorPlace analyst Eric Fry is even more adamant, writing late last month that “battery technology is the factor that will enable automakers to either profit from the EV boom … or not.”
Fry noted that as the EV and energy storage markets continue to ramp higher, demand for battery metals will also ramp even higher. Now with more of the resource, Piedmont Lithium is looking even better to investors.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.