Sayona (ASX: SYA) in money printing mode amidst rising lithium demand

Key Takeaways:

• Today, Sayona mining shares were up 5.454% at AU$0.290 per share on ASX at 12:39 PM AEST
• The share price of Sayona has gained almost 123% in the last one year, while the stock is up nearly 107.14% year-to-date (YTD)
• Pilbara's investor presentation revealed yesterday that the expected deficit for lithium by 2040 is nearly 1.8 million metric tons.

Lithium stocks have gained widespread attention over the last few months, thanks to the booming electric vehicles (EVs) industry. When it comes to ASX-listed lithium players, how can one forget to mention Sayona Mining Limited (ASX: SYA). By the end of day’s trade on 24 August 2022, Sayona shares were up 5.454% and settled at AU$0.290 per share on ASX. Today's jump in the SYA’s share price was seen despite new announcement on ASX from the company's side. 

At a time when there is greater market volatility, and most sectors are faring poorly, lithium stocks such as Sayona are attracting investors' attention. The share price of Sayona has gained almost 123% in the last one year, while the stock is up nearly 107.14% year-to-date (YTD). The lithium producer's last one-year return is another reason investors are considering adding this stock to their portfolio. 

Why is there a positive movement in lithium sector?

Meanwhile, there are other reasons too, why this stock has outperformed other stocks since the beginning of this week. On Tuesday (23 August), after Pilbara Minerals (ASX: PLS) reported compelling FY22 results indicating increased demand for lithium, there was a positive movement in the lithium sector. Pilbara's investor presentation revealed yesterday that the expected deficit for lithium by 2040 is nearly 1.8 million metric tons.

Do Read our special report on Pilbara stock by clicking here

Lithium stock is gaining traction as the world is increasingly moving towards a sustainable energy future, and there is greater demand for clean energy technologies like electric vehicles. 

Noticeably, Lithium-ion batteries are used in most EVs due to their high energy per unit mass as against other electrical energy storage systems.

How did other Lithium stocks, PLS and ALK, perform today?

Shares of other lithium peers like Pilbara Minerals Ltd (ASX: PLS) were up 5.504% at AU$3.450 at 1:59 PM AEST, while Allkem Ltd (ASX: ALK) shares were seen trading 5.281% higher at AU$13.855 per share on ASX at 1:51 PM AEST. 

Recent update by the company:

On 4 August, the company informed that it further advanced its planned spodumene (lithium) production restart at the North American Lithium (NAL) operation in Québec. As per the company, 30% of plant & equipment upgrades have been completed. The rapid progress at NAL will enable the company towards the rapid resumption of lithium production. Further, SYA’s operations at NAL are powered by hydroelectricity. Thus, making it amongst the world’s most sustainable lithium operations in an industry that aims to support global decarbonisation.

The company is well placed to resume production in Q1 2023, becoming the sole local supplier in North America after committing around $100 million to the restart.

Bottom Line:

By 2030, the global EV market is forecasted to hit 39,208 thousand units. This means that the demand for lithium will grow in the upcoming years, and hence the prospects of lithium companies look brighter. 

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