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