The Sayona Mining Ltd (ASX: SYA) share price had a rough day today, finishing nearly 5% in the red.
Sayona Mining shares dropped 4.76% to close at 20 cents. For comparison, the S&P/ASX 200 Resources Index (ASX: XJR) descended 1.14% today.
Let's take a look at what may have weighed on the Sayona Mining share price today.
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The big picture
Sayona shares fell today, but they were not alone among ASX lithium shares. For example, the Liontown Resources Ltd (ASX: LTR) share price plummeted 7.5% today, while Core Lithium Ltd (ASX: CXO) shares fell 3.37%. Piedmont Lithium Inc (ASX: PLL) shares lost 4.14% today.
ASX lithium shares followed in the footsteps of their US counterparts on Friday. Shares in lithium giant Albemarle Corporation (NYSE: ALB) dropped 3.91%, while Livent Corp (NYSE: LTHM) shares sank 8.81% on the New York Stock Exchange.
Lithium shares may be struggling amid concern that demand for the battery-making material in China could fall, potentially impacting the global lithium price. Protests over COVID-19 lockdowns broke out in that country on the weekend.
The electric vehicle (EV) battery industry in China may have an oversupply of EV batteries by 2025, according to a report in the South China Post on Sunday. The article stated EV battery makers in mainland China were forecast to exceed electric car maker demand in China threefold in 2025.
The lithium carbonate price in China dropped 0.53% to 562,500 yuan on Friday. This followed a 1.74% drop in the lithium carbonate price last Thursday.
What's happened with Sayona Mining recently?
Meanwhile, Sayona recently highlighted that its North American Lithium (NAL) operation restart was gaining momentum. Procurement is 98% complete, and construction is ramping up. Sayona advised the operation was on track to produce lithium by the first quarter of 2023.
Commenting on the news, Sayona managing director Brett Lynch said:
NAL is progressing rapidly towards next year's restart, and our recent move to expand NAL's potential resource and mine production capacity will only further enhance its long‐term productivity.
Sayona share price snapshot
The Sayona Mining share price has soared 42.8% in the past 12 months and 53.8% year to date.
For perspective, the Resources Index has jumped nearly 20% in the past year.
Sayona has a market capitalisation of $1.7 billion based on the current share price.
