Why did the Sayona Mining share price have a tough run today?

We take a look at why Sayona shares finished the day in the red.

Mining worker making frame with his hands and peering through it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Sayona Mining shares were among ASX lithium shares to struggle today 
  • The lithium company's share price was down 4.76% at the close 
  • Lithium shares fell amid concerns about lessening demand from China. US lithium shares also struggled on Friday 

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.

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.

Should you invest $1,000 in Data#3 Limited right now?

Before you buy Data#3 Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Data#3 Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Monica O'Shea 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.

More on Resources Shares

Miner looking at a tablet.
Resources Shares

Mineral Resources share price slides despite significant reserves growth

An 89% resources upgrade hasn’t boosted Mineral Resources shares today.

Read more »

Copal miner standing in front of coal.
Resources Shares

How much upside does Macquarie tip for New Hope shares?

A softer-than-expected quarter has impacted the broker's view.

Read more »

2 people at mining site, bhp share price, mining shares
Resources Shares

Rio Tinto share price pushes higher on $1.4 billion lithium agreement

Rio Tinto shares are gaining major lithium exposure.

Read more »

Miner looking at a tablet.
Resources Shares

Up 73% since April, why Mineral Resources shares could keep charging higher

A leading expert says that Mineral Resources shares remain ‘heavily undervalued’. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

Miner looking at a tablet.
Resources Shares

What's the latest broker ratings on BHP shares?

There's an air of caution floating about BHP shares even with bullish ratings.

Read more »

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Resources Shares

BHP shares last traded at $50 in 2023. When will they get back there?

Let’s dig into the potential for BHP shares to rise.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 21% on 'exceptional' results

Investors are sending the ASX All Ords stock flying higher on Wednesday. But why?

Read more »