Why is the Sayona Mining share price surging 8% on Friday?

The Sayona Mining Ltd (ASX: SYA) share price is powering upward today amid further government commentary on the need for an increased uptake of electric vehicles (EVs) in Australia.

At the time of writing, the Sayona share price is 27 cents, up 8%.

What’s been said about electric vehicles today?

Speaking at the National Electric Vehicle Summit in Canberra, Energy and Climate Change Minister Chris Bowen pledged that the government would provide “policy leadership” on EVs.

According to reporting in The Australian, Bowen said:

We believe now is the time to have a sensible discussion about whether fuel efficiency standards could help improve the supply of electric vehicles into our market …

Apart from Russia, Australia is the only OECD country not to have or be in the process of developing fuel efficiency standards.

Other government ministers have also given their support for increasing EV uptake in Australia.

NSW Energy Minister and Treasurer Matt Kean said he was working with political peers on both sides of the aisle “who are continuing to push reform to support the uptake of EVs”, according to The Guardian.

Kean said EVs were “absolutely essential to our emission reduction goals”.

What’s this doing for the Sayona share price?

Well, the discussion at the summit simply provides further momentum for the shift to EVs in Australia. And that’s great news for lithium miners like Sayona, given lithium is a crucial element in the batteries that make EVs run.

Other ASX lithium shares are also trading higher today. Allkem Ltd (ASX: AKE) shares are up 1.32% at the time of writing, and Pilbara Minerals Ltd (ASX: PLS) shares are 0.16% higher. Lake Resources NL (ASX: LKE) shares are up by 1.68%.

Perhaps Sayona is getting a bigger benefit today after some exciting announcements this month.

These include restarting its North American Lithium operation and bolstering its financial base by increasing its at-market subscription agreement (ATM) with existing shareholder Acuity Capital.

What’s next for EVs in Australia?

A draft of Australia’s first National Electric Vehicle Strategy will be released in September.

This was among a range of promises made by the Labor Party during the election campaign to boost EVs in Australia. Another commitment was to introduce an electric car discount.

This would exempt EVs below the luxury car tax threshold ($77,565 in FY21) from import tariffs and fringe benefits taxes.

What’s next for the Sayona share price?

As my Fool colleague Raymond pointed out this week, the Sayona share price has been volatile of late.

But overall, it’s a lush green picture. In the year to date, Sayona shares are up 93%. Over the past month, they have risen more than 80%.

ASX lithium shares received a new tailwind this week when the United States Congress passed a $US430 billion bill “that is seen as the biggest climate package in the country’s history”, as abc.net.au reported.

The post Why is the Sayona Mining share price surging 8% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Sayona Mining share price so volatile?
• Why are ASX lithium shares having such a cracking start to the week?
• Why is the Lake Resources share price up so much more than other ASX lithium shares today?
• Why has the Sayona Mining share price rocketed almost 100% in a month?
• Why is the Sayona Mining share price surging 15% on Monday?

Motley Fool contributor Bronwyn Allen has positions in Allkem Limited. 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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