Why is the Sayona Mining share price tumbling 14% on Wednesday?

The Sayona share price is suffering alongside many of its peers on Wednesday.

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Key points

  • The Sayona Mining share price is currently 14% lower than its previous close, trading at 18.75 cents
  • The lithium explorer and developer's stock might be being dragged down by news Argentina has has set a reference price on the material's export
  • Additionally, a top broker tipped the nearing end of the battery commodity boom earlier this week

The Sayona Mining Ltd (ASX: SYA) share price is tanking on Wednesday despite only silence from the company. However, there’s been plenty of news on lithium ­lately.

At the time of writing, the Sayona share price is 18.75 cents, 14.77% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has just tipped into the red, down 0.03%, while the All Ordinaries Index (ASX: XAO) is also down 0.21%.

Let’s look at what might be weighing on the lithium explorer and developer’s shares on Wednesday.

What’s going wrong with the Sayona share price?

The Sayona share price is suffering alongside many of its peers on Wednesday.

The sell-off facing numerous lithium miners might have been spurred by negative sentiment about the value of lithium and a major decision from Argentina.

The South American nation has set a reference price of US$53 per kilogram of lithium, reports The Australian.

The decision reportedly comes after Argentina flagged irregularities in shipments.

Additionally, Goldman Sachs was said to have tipped the end of the battery metals boom earlier this week.

“[W]e see the battery metals bull market as over for now,” Goldman analysts Nicholas Snowdon and Aditi Rai were quoted by Bloomberg as saying.

They reportedly predict the spot price of lithium will fall to slightly higher than US$16,000 per tonne next year.

Though, the analysts were said to believe lithium’s value will take off again in the second half of the decade.

It’s impossible to say whether the happenings are weighing on the Sayona share price today. But at least it’s not alone in the red.

It’s joined by lithium giants Allkem Ltd (ASX: AKE), Core Lithium Ltd (ASX: CXO), Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS).

And despite today’s falls, the Sayona share price is around 48% higher than it was at the start of 2022. It has also gained 348% since this time last year.

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 Goldman Sachs. 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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