Here’s why the Sayona (ASX:SYA) share price is surging 34% on Monday

The Sayona Mining Ltd (ASX: SYA) share price is rocketing higher on more positive spodumene testing results.

Lithium hydroxide made from the company’s Authier spodumene product has been found to be of the same quality as commercial battery-grade material.

At the time of writing, the Sayona share price is 33.5 cents, 34% higher than its previous close.

However, that’s fallen from its intraday – and new 52-week — high of 34 cents. That represented a 36% increase.

Let’s take a closer look at today’s news from the emerging lithium producer.

Positive test results send Sayona shares soaring 34%

The Sayona share price is launching upwards after testing conducted by lithium-ion battery technology giant Novonix Ltd (ASX: NVX) confirmed the quality of the company’s spodumene product.

Scientists at Novonix have found the discharge capacity of cathode cells made using lithium hydroxide from Sayona’s spodumene concentrates was the same as benchmark cathode cells.

The spodumene concentrate was produced at the company’s Authier Lithium Project – located in Québec, Canada.

The company states the results show its Authier product performs as well as commercially available battery-grade lithium hydroxide.

Additionally, when combined with Québec’s hydroelectric power, the company’s product comes with environmental competitive advantages.

The positive results from Novonix’s testing follow analysis completed at CSIRO’s Mineral Resources Laboratories in Perth.

There, Authier spodumene was found to be able to be processed into high purity, 99.99% lithium hydroxide.

Sayona managing director Brett Lynch said the results further verify that Authier spodumene is suitable to be converted into highly demanded lithium hydroxide.

“Sayona has committed to downstream processing in Québec, including lithium carbonate or hydroxide,” Lynch continued.

“These results by an industry-leading battery tester have further increased confidence in our strategy.”

Also potentially boosting the Sayona share price today, the company has updated the market on its recent activities.

Drilling at its Moblan Lithium Project is ongoing and expected to finish in the middle of this month. The results are predicted to expand Sayona’s lithium resource base.

Additionally, Sayona was recently added to the S&P/ASX 300 Index (ASX: XKO). The company said its inclusion followed significant growth in its market value, which is expected to increase institutional investments in Sayona.

“Sayona has made an extremely bright start to 2022, despite significant geopolitical and market instability, amid a continued focus on the electrification of transport to curb emissions,” said Lynch. 

Sayona share price snapshot

Today’s gains have boosted the Sayona share price even higher into the ASX green.

Right now, the company’s stock is trading for 157% more than it was at the start of 2022. It has also gained 807% over the last 12 months.

The post Here’s why the Sayona (ASX:SYA) share price is surging 34% on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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