Why did the Sayona Mining share price dive 7% on Thursday?

ASX lithium shares were drowning in a sea of red today.

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Key points
  • Sayona Mining shares fell nearly 7% today 
  • Multiple ASX lithium shares including Core Lithium and Pilbara were also in the red
  • Lithium shares in the USA struggled overnight after the Fed Reserve raised interest rates 

The Sayona Mining Ltd (ASX: SYA) share price had a tough run on the market today.

Sayona shares dropped nearly 6.82% to finish the day at 20.5 cents.

Let's take a look at what may have impacted the Sayona Mining share price on Thursday.

An unhappy investor holding his eyes while watching a falling ASX share price on a computer screen.

Image source: Getty Images

What happened to Sayona Mining today?

Sayona Mining was not the only ASX lithium share to tumble today. The Core Lithium Ltd (ASX: CXO) share price descended 9.44%, while Pilbara Minerals Ltd (ASX: PLS) shares fell 11.43%.

The S&P/ASX 200 Materials Index (ASX: XMJ) also finished 1.35% in the red today.

Lithium shares followed in the footsteps of US lithium giants overnight. For example, the Albemarle Corporation (NYSE: ALB) share price descended 5.36%, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares lost 4.15%.

As my Foolish colleague Sebastian reported today, investors in growth stocks appeared to be rattled following comments from the US Federal Reserve meeting. The Fed hiked interest rates by 0.5%.

US Federal Reserve chairman Jerome Powell said:

It is our judgment today that we are not at a sufficiently restrictive policy stance yet. We will stay the course until the job is done.

Possibly also weighing on lithium shares today was news surrounding Pilbara Minerals. The team at Morgans said there is "not enough upside" for the Pilbara Minerals share price. The company placed a hold rating on Pilbara with a $4.70 price target.

Further, the company received a lower price for lithium in its latest battery material exchange (BMX) lithium auction. This lower price may be impacting investor sentiment in ASX lithium shares and, in turn, the Sayona share price.

Sayona has a 75% stake in the North American Lithium project in Quebec, Canada.

Sayona Mining share price summary

Sayona Mining shares have returned 64% in the last year.

Sayona has a market capitalisation of about $1.78 billion based on the current share price.

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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