Why is the Piedmont Lithium share price popping 6% on Thursday?

Is this helping to boost this ASX lithium stock today?

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Key points
  • The Piedmont Lithium share price is surging around 6% to trade at 91.5 cents today
  • There's been no news from the company to explain its gains. Though, its joined in the green by many of its ASX lithium peers.
  • Additionally, the company's CEO recently warned that a shortage of lithium could see demand for electric vehicles unable to be filled

The Piedmont Lithium Inc (ASX: PLL) share price is rocketing higher on Thursday despite the company's silence.

Though, it's been a big week for ASX lithium shares, perhaps partly due to comments made by the company's boss.

The Piedmont Lithium share price is 91.5 cents right now. That marks a 5.78% gain on Thursday.

For context, the All Ordinaries Index (ASX: XAO) is up 1.61% right now.

So, what might be boosting the US-focused lithium developer's stock? Let's take a look.

A woman smiles as she powers up her electric car using a fast charger.

Image source: Getty Images

What's driving the Piedmont Lithium share price today?

ASX lithium share Piedmont Lithium is joining many of its peers in the green on Thursday.

Indeed, the S&P/ASX 200 Materials Index (ASX: XMJ) is one of the S&P/ASX 200 Index (ASX: XJO)'s best-performing sectors today. It's gaining 2.4% at the time of writing compared to the index's 1.6% gain. And lithium shares are leading its gains for no obvious reason. Though, there's been plenty to drive sentiment for the sector this week.

Firstly, experts, including Piedmont Lithium CEO Keith Phillips, have voiced concerns supply shortages of the material could continue for years.

Speaking to Yahoo Finance earlier this week, Phillips said the world might not to able to produce enough lithium to sate some aspirational electric vehicle take-up targets. He continued:

There's going to be a real crunch to get the material. We don't have enough in the world to turn that much [lithium] production [to meet some 2035 targets].

The world has changed… We're now in an era where everyone's going to want an electric car. The car companies can't make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.

On that note, Australians have been snapping up electric vehicles at record rates.

According to data from the Federal Chamber of Automotive Industries, released on Monday, a record 4.4% of all cars sold in Australia in August were electric. Tesla Inc (NASDAQ: TSLA)'s Model 3 was Australia's fourth best-selling car last month.

Looking further back, 2% of cars sold in the country so far this year are battery powered.

Such happenings may have driven sentiment for ASX lithium shares this week and, in turn, could be boosting the Piedmont Lithium share price today.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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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