Here's why the Piedmont Lithium (ASX:PLL) share price is jumping 11% today

The Piedmont Lithium Ltd (ASX:PLL) share price is jumping 11% on Friday. Here's why this lithium miner's shares are on fire today…

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The Piedmont Lithium Ltd (ASX: PLL) share price is on course to end the week with a bang.

In morning trade the lithium-focused mineral exploration company's shares are up 11% to 92.5 cents.

This latest gain means the Piedmont Lithium share price is up approximately 150% since the start of the year.

Why is the Piedmont Lithium share price storming higher?

Investors have been buying Piedmont Lithium shares on Friday after investor risk appetite improved.

According to CNBC, this has been driven by three key market drivers that are pointing to further gains ahead.

UBS Global Wealth's chief investment officer, Mark Haefele, explained: "While we expect conditions to remain volatile, the most recent developments on three of the main market drivers—stimulus, pandemic news, and inflation data— point to further equity upside."

"The stimulus is substantially larger than had been expected earlier in the year. Its provisions are also likely to be highly supportive for consumption and growth. This windfall comes on top of existing signs of pent-up demand from US consumers."

This bullish sentiment ultimately led to the Global X Lithium & Battery Tech ETF rising 6% during overnight trade.

What else is supporting Piedmont Lithium's shares?

In addition to this, rising lithium prices have been giving the Piedmont Lithium share price a lift.

Late last week, for example, China's domestic battery-grade lithium hydroxide price surged to a 19-month high. According to Metal Bulletin, this was driven by tight spot supply and higher offering prices from most producers. Lithium carbonate prices are also rising strongly.

Metal Bulletin notes that these conditions have supported bullish market sentiment across the other global regions.

How are other lithium producer's performing?

It isn't just Piedmont Lithium share price charging higher today. Several other lithium miners are recording strong gains today.

This includes a 5% gain by the Orocobre Limited (ASX: ORE) share price, a 6% rise by the Lake Resources N.L (ASX: LKE) share price, and a 7% jump by the Vulcan Energy Resources Ltd (ASX: VUL) share price.

Should you invest $1,000 in Piedmont Lithium Limited right now?

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Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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