LAC - Why did Piedmont Lithium shares soar today? New climate bill boosts optimism

The U.S. House of Representatives passed the sweeping tax and climate bill on Friday, and President Biden said he will sign the bill into law next week.

The so-called Inflation Reduction Act includes $369B in spending on climate and energy policies projected to reduce U.S. carbon emissions by 40% by 2030.

Piedmont Lithium ( NASDAQ: PLL ) closed +19% in Friday's trading to cap a red-hot week in which its stock soared 41%, sparked by optimism tied to the legislation.

Piedmont's ( PLL ) operations are located in the U.S., owning a 100% interest in the Carolina Lithium Project located west of Charlotte, and another North Carolina property in Kings Mountain - a primary reason why shares have skyrocketed.

The legislation stipulates that makers of electric vehicles must assemble their vehicles in North America and source most of their battery components and materials - including lithium - from countries with trade-friendly agreements in place with the U.S., in effect removing China's significant lithium supply from the equation.

The supply-and-demand dynamics could keep lithium prices elevated, while Piedmont ( PLL ) and other U.S.-based lithium providers such as Livent ( NYSE: LTHM ), Albemarle ( ALB ) and Lithium Americas ( LAC ) benefit.

ETF: ( NYSEARCA: LIT )

Livent ( LTHM ) "is a pure-play lithium stock... investing in growth initiatives that aim to more than triple its production capacity by 2030," Fade The Market writes in a bullish analysis newly published on Seeking Alpha .

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