Why did the Sayona Mining share price beat the ASX All Ords on Tuesday?

The ASX lithium share didn't enjoy some of the big gains it has experienced recently but still performed better than the market.

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Key points
  • The Sayona Mining share price was up and down today before ending the trading day flat
  • There was no news out of the company to explain its outperformance of the market
  • However, the demand for lithium is likely to be a key driver

The Sayona Mining Ltd (ASX: SYA) share price failed to hit the heights of some of its fellow ASX lithium stocks today, ending the day flat at 27.5 cents.

However, it outperformed the All Ordinaries Index (ASX: XAO), which closed down 1.21%, and the S&P/ASX 300 Index (ASX: XKO), which fell by a similar amount.

Let's find out what happened with the Sayona Mining share price today.

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Image source: Getty Images

What's going on with Sayona Mining?

There's been no news out of Sayona Mining today. In fact, the last price-sensitive announcement by the company came on 4 August.

It stated it had restarted North American Lithium (NAL) production in Quebec, Canada, with the first spodumene concentrate production expected in the first quarter of next year. Sayona shares soared 10% on the back of that news and surged another 17% four days later.

The Sayona Mining share price was enjoying another day in the green earlier today before slipping towards the close, but it remained ahead of the broader market.

It also outperformed ASX lithium peer Lake Resources NL (ASX: LKE), which ended the day 2.89% lower.

However, it proved an even better day for some other ASX lithium stocks. The Pilbara Minerals Ltd (ASX: PLS) share price closed 3.15% higher, while Allkem Ltd (ASX: AKE) shares gained 5.28%.

Global demand for lithium is soaring

These positive moves in the lithium sector came after Pilbara Minerals posted a very compelling earnings card for FY22 today. The company reported $1.2 billion of revenue, $814.5 million of earnings before interest, tax, depreciation, and amortisation (EBITDA), and $561.8 million of net profit after tax (NPAT).

More tellingly, for the rest of the market, Pilbara's investors' presentation contained the insight that a 1.8 million metric ton deficit for lithium is expected to be reached by 2040, with upside potential to spare.

In the markets, there's a saying that "a rising tide lifts all boats," meaning that an improved backdrop for the economy will help all those who contribute to it.

That could be part of the reason why Sayona Mining and some of its fellow ASX lithium stocks have outperformed today.

Sayona Mining share price snapshot

The Sayona Mining share price is up 96% year to date and 111% over the past year. It's also up 45% over the past month.

Sayona Mining has a market capitalisation of $9.44 billion.

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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