Why Piedmont Lithium, Lithium Americas, and Livent Stocks Exploded Higher Today
Tesla (NASDAQ: TSLA) inked a "five-year fixed-price binding agreement" to buy lithium from Australian miner Piedmont Lithium (NASDAQ: PLL) this morning, igniting a rally in lithium stocks. Piedmont's own shares are up 210% as of 10 a.m. EDT, while rival producers Lithium Americas (NYSE: LAC) and Livent (NYSE: LTHM) are coming along for the ride, up 17% and 8.4%, respectively. According to the terms of the agreement, Piedmont will supply spodumene concentrate (a rock rich in lithium) to Tesla for at least five years, but possibly as long as 10 years, extracting the material from its North Carolina mines.
