The Sayona Mining Ltd (ASX: SYA) share price is having a strong session.
In morning trade, the lithium miner's shares are up 11% to 6.1 cents.
Why is the Sayona Mining share price jumping?
Investors have been buying Sayona Mining and other ASX lithium shares today amid optimism that interest rate cuts are on the horizon in the United States.
This follows the US Federal Reserve's latest meeting which saw the central bank hold firm with rates this month and indicate that three cuts could be on the cards next year.
While this has given the whole market a lift, the beaten-down lithium industry is faring better than most. For example, here's the state of play at the time of writing:
- Allkem Ltd (ASX: AKE) shares are up 10% to $10.04
- Core Lithium Ltd (ASX: CXO) shares are up 14% to 28 cents
- Liontown Resources Ltd (ASX: LTR) shares are up 10% to $1.40
- Pilbara Minerals Ltd (ASX: PLS) shares are up 11% to $3.88.
As well as being a positive for share market valuations, investors may believe that lower interest rates could boost electric vehicle sales. This would be good news for lithium demand and could bring an end to freefalling battery material prices.
