Sayona shares sail 8% ahead amid government’s call to secure energy supply

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.

The Sayona Mining Ltd (ASX: SYA) share price finished well in the green today.

Sayona shares closed at 14 cents today, a 7.69% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 0.44%.

Let’s take a look at what’s been happening with Sayona shares.

Sayona shares on the rise

Sayona shares soared today but they were not the only ASX lithium shares to jump. Pilbara Minerals Ltd (ASX: PLS) shares leapt 3.81%, the Core Lithium Ltd (ASX: CXO) share price rose 2.86%, and the Allkem Ltd (ASX: AKE) share price climbed 2.7%. Further, the S&P/ASX 200 Materials Index (ASX: XMJ) closed 1.56% higher.

Sayona is a lithium producer exploring projects in Western Australia and Quebec, Canada.

The company has recently revealed plans to restart lithium production at the North American Lithium Operation.

Sayona, along with Piedmont Lithium Inc (ASX: PLL), has agreed to speed up production at the project. The first spodumene concentrate production is earmarked for the first quarter of 2023. The Sayona share price soared on the back of the news late last month,

Meanwhile, the government is calling for more secure clean energy supply chains as the world moves towards net zero, the Australian Financial Review reported. In a speech to a global energy forum in Sydney this week, Prime Minister Anthony Albanese said:

It is essential that the unprecedented levels of investment in clean energy technologies required over the coming decades unlocks more diverse and secure supply chains than we have today.

Greater diversity and security of critical minerals extraction and processing, greater diversity of clean technology manufacturing, and security of clean energy supply are essential for managing supply and strategic risks.

Meanwhile, in quotes cited by the Sydney Morning Herald, US energy secretary Jennifer Granholm raised concerns China is “big-footing” energy supply chains. She said:

From an energy security point of view, it is imperative that nations that share the same values to develop our own supply chains, not just for the climate, which of course is very important, but for our own energy security.

Share price snapshot

Sayona shares have soared 65% over the past 12 months and risen 7.69% year to date.

In the past week, the company’s share price has lost 6.67%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen nearly 10% in the past year.

Sayona has a market capitalisation of about $1.2 billion based on today’s share price.

The post Sayona shares sail 8% ahead amid government’s call to secure energy supply appeared first on The Motley Fool Australia.

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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.

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