The Sayona Mining Ltd (ASX: SYA) share price is on the move once more, gaining an impressive 7% on Friday.
The Canada and Australia-focused lithium producer has been on a green run lately, having gained 33% so far this week.
At the time of writing, the Sayona Mining share price is trading at 23 cents. That's just slightly off the company's shiny new 52-week high of approximately 24 cents, which it hit in intraday trade yesterday.
For context, the broader market is also in the green today. The All Ordinaries Index (ASX: XJO) is currently up 0.33%, as is the S&P/ASX 200 Index (ASX: XJO).
So, what's boosting the company's stock higher again? Let's take a look.
Why is the Sayona Mining share price surging today?
While there's been no news from Sayona Mining to explain its share price's movements, the company's stock might be reacting to rising lithium prices.
The battery-making material's value has been on many minds lately. Today, Bloomberg is reporting the Chinese price of lithium carbonate has increased 5 times over the past 12 months as demand continues to increase.
While this could be bad news for those looking to buy batteries – the online service states electric vehicle manufacturers could be forced to increase prices by as much as 15% due to the commodity's rising price – it's likely good news for lithium producers.
Of course, when the price of lithium goes up, it generally means producers' profits rise in turn.
Additionally, trading of Sayona Mining's shares has seemingly increased over the last few weeks, potentially helping to drive its stock higher.
That might have something to do with the company's recent inclusion in both the All Ords and the S&P/ASX 300 Index (ASX: XKO).
Of course, its addition to the indexes mean funds tracking them had to buy into the company. Additionally, it's likely allowed fund managers mandated to trade within certain indexes to look into the company's stock.
Today's gains see the Sayona Mining share price 73% higher than it was this time last month. It has also gained 541% since this time last year.
