The Sayona Mining Ltd (ASX: SYA) share price is having a very strong day.
In morning trade, the lithium developer's shares are up 13% to 25.5 cents.
Why is the Sayona Mining share price storming higher?
There have been a couple of catalysts for the strong gain by the Sayona Mining share price on Tuesday.
The first is the market rebounding today following an exceptionally strong night of trade on Wall Street.
Higher risk options, such as lithium shares, are performing particularly positively. This has seen the likes of Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) push notably higher today.
What else?
Also giving the Sayona Mining share price a boost today is the release of an announcement.
According to the release, a pre‐feasibility study (PFS) has been launched to look at the potential production of lithium carbonate at the North American Lithium (NAL) operation.
The PFS will examine the option of producing lithium carbonate from spodumene produced at NAL, where production of spodumene concentrate is scheduled to commence from the first quarter of 2023.
Management notes that the proposed move downstream is a significant potential value‐adding boost in enhancing the long‐term value and profitability of the NAL operation.
'A significant increase in profitability'
Sayona Mining's managing director, Brett Lynch, commented:
Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in profitability, whether through lithium carbonate or hydroxide production.
We look forward to examining the results of the PFS, as we work towards becoming a leading integrated producer and the largest in North America, amid accelerating demand from the battery and electric vehicle sector.
The NAL project is co-owned with fellow lithium developer Piedmont Lithium Inc (ASX: PLL).
