The Lake Resources N.L. (ASX: LKE) share price is up and away on Tuesday despite no announcements from the company.
At market open, the clean lithium developer's shares were swapping hands for $1.125 apiece.
However, investors have been bidding up the company's shares as confidence grows in the market.
During early afternoon trade, Lake Resources shares are fetching $1.26 apiece – up 17.21%.
Let's take a look at what's been driving the excitement around this company.
What's driving the Lake Resources share price higher?
The Lake Resources share price is on the move following upbeat sentiment among the S&P/ASX 300 Metals and Mining (ASX: XMM) sector.
As such, the benchmark index, representing a number of companies that produce gold, steel, and/or precious metals, is up 0.9%.
For context, shares in peers Sayona Mining Ltd (ASX: SYA) and Core Lithium Ltd (ASX: CXO) are up 10.2% and 7.72%, respectively.
While Lake Resources' last announcement was its quarterly report, its shares are continuing to strongly rebound. This comes after being sold off during June and July on the back of a short-seller attack.
Nonetheless, it seems that investors are closing their positions after the company was one of the most heavily shorted stocks.
Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow and then sell the shares, and buy them back at a lower price for a profit.
Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.
As such, Lake Resources had 10.41% of its shares being shorted by investors, an improvement of 0.39% over the week.
Lake Resources share price recap
Despite its extreme volatility of late, the Lake Resources share price has zipped 97% higher in the past 12 months.
Renewed investor sentiment within the battery industry has helped support the share price.
Based on today's price, Lake Resources presides a market capitalisation of roughly $1.29 billion.
