The Sayona Mining Ltd (ASX: SYA) share price had a tough run on the market today.
Sayona shares sunk 10.53% to finish the day at 17 cents apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.3% today.
So why did the Sayona Mining share price fall so far today?
What's going on?
Sayona Mining shares descended on Wednesday despite no news from the company. However, Sayona was not the only ASX lithium share to finish the day in the red. Pilbara Minerals (ASX: PLS) shed 3.68% today, while Global Lithium Resources Ltd (ASX: GL1) plunged 8.45%.
A drop in the lithium price could have weighed on lithium shares today. The lithium hydroxide price has fallen 0.24% to US$84,600 on the London Metal Exchange. Meanwhile, China spot lithium carbonate dropped 1% to CNY 492,500
Major lithium shares on the New York Stock Exchange also fell overnight. Albemarle Corporation (NYSE: ALB) shares shed 5.66%, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares descended 5.33% on Wall Street.
Speculation on interest rates could also be weighing on investor sentiment. The RBA lifted the official cash rate by 25 basis points to 3.1% in December. Higher interest rates can increase the cost of financing mining operations.
Sayona Mining is targeting production from its North American lithium operation in the first quarter of 2023.
Sayona Mining share price snapshot
The Sayona Mining share price has soared 36% in the last year. However, Sayona shares have lost 19% in the last month.
For perspective, the ASX 200 has shed 4.5% in the last year.
