The Sayona Mining Ltd (ASX: SYA) share price is down 6% today to 24 cents on news that lithium prices have fallen to their lowest level in more than a year.

The Australian Financial Review (AFR) reports the lithium carbonate equivalent price has fallen to US$49,757 per tonne, according to Shanghai Metals Market data.

The last time lithium traded at these levels was January 2022, according to Trading Economics.

Lithium is an essential ingredient in the batteries that power electric vehicles (EVs).

Analysts say this latest price slide is due to China ending EV subsidies this year.

The trouble with commodity stocks

Investors with money in commodity-related stocks know that when commodity prices move, so do share prices. So, it’s unsurprising to see plenty of other ASX lithium shares trading lower today.

• The Allkem Ltd (ASX: AKE) share price is down 7.2% to $11.56
• The Pilbara Minerals Ltd (ASX: PLS) share price is down 6.1% to $4.02
• The Liontown Resources Ltd (ASX: LTR) share price is down 6.2% to $1.59
• The IGO Ltd (ASX: IGO) share price is down 6% to $12.98
• The Lake Resources N.L. (ASX: LKE) share price is down 5.5% to 60 cents
• The Mineral Resources Ltd (ASX: MIN) share price is down 5.3% to $84.30
• The Core Lithium Ltd (ASX: CXO) share price is down 4.5% to 96 cents

But longer term, the future of EVs is rosy. According to a report published by Bloomberg, global spending on passenger EVs leapt 53% year over year to US$388 billion in 2022.

According to Bloomberg’s analysis, passenger EV sales will likely go beyond US$500 billion in 2023, up another 29% year-over-year.

That’s kinda significant for ASX lithium shares when you consider approximately 75% of the world’s consumption of lithium is in rechargeable batteries!

Other issues may be weighing on the Sayona Mining share price

Potentially also dragging on the Sayona Mining share price today are allegations made by a short-attacker against Sayona’s joint venture (JV) partner, Piedmont Lithium Inc (ASX: PLL).

Sayona and Piedmont are working on projects in Quebec through their JV, Sayona Quebec.

The trouble with Piedmont today relates to a short report from Blue Orca Research alleging Piedmont’s agreement to secure lithium spodumene supply in Ghana may be in jeopardy.

In terms of the Quebec JV, Sayona Mining gave some positive news to the ASX on Wednesday.

It announced that the JV’s flagship project, the North American Lithium Project, has produced initial spodumene concentrate.

Sayona Mining and Piedmont are currently working on restarting the project. They hope to be selling lithium product from the project in Q3 2023.

The post Sayona Mining share price dumps 6% amid lithium lows appeared first on The Motley Fool Australia.

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More reading

• Macquarie tips 3 ASX lithium shares to outperform, one with 150% upside
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Sayona Mining share price dips despite first lithium production
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why InvoCare, Pentanet, Sayona Mining, and Weebit Nano shares are storming higher

Motley Fool contributor Bronwyn Allen has positions in Allkem and Core Lithium. 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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