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.
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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.
