Why is the Piedmont Lithium share price having such a stellar run on Tuesday?

The Piedmont Lithium Inc (ASX: PLL) share price is charging higher on Tuesday.

In afternoon trade, the lithium developer’s shares are up 4% to 87 cents.

This compares favourably to the ASX 200 index, which is trading flat at the time of writing.

Why is the Piedmont Lithium share price charging higher?

Investor have been buying Piedmont Lithium’s shares despite there being no news out of the company.

However, it is worth noting that it isn’t the only lithium share rising today. A good number are outperforming the market today thanks to a strong showing in the battery materials sector.

This has seen the likes of Allkem Ltd (ASX: AKE) and Core Lithium Ltd (ASX: CXO) record gains of over 3% this afternoon.

What else?

It is also worth pointing out that Piedmont Lithium shares are now listed on the NASDAQ index as well as the Australian share market.

In fact, you could argue that the former is now the more important listing, with its Australian shares having a tendency to follow their lead.

So, with the Piedmont Lithium share price lifting 4% on the NASDAQ overnight, they have followed suit on the local market today.

Investors were buying its US shares on Monday night after lithium shares such as Albemarle, Livent and SQM rose on Wall Street. This was despite the rest of the market taking a bit of a tumble.

Investors appear to believe that supply constraints and strong demand for lithium will keep prices elevated for longer, putting these companies in a position to profit greatly over the coming years.

The post Why is the Piedmont Lithium share price having such a stellar run on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem shares. 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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