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Why is the Sayona Mining share price in the doldrums this week?

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The Sayona Mining Ltd (ASX: SYA) share price is down 15.5% since last Friday’s close amid a weakening in the materials sector.

Shares in the lithium producer currently trade for 24.5 cents each.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 2.2% over this period.

Meanwhile, other ASX lithium shares have gained since the close of last Friday.

Pilbara Minerals Ltd (ASX: PLS) is up 8.28% and Allkem Ltd (ASX: AKE) is up 1.96%.

The Sayona Mining share price has been performing poorly over the past week. That’s despite mostly positive developments for the lithium industry at large.

Due to significant volatility, its share price has been riding wild up-and-down whipsaws over the past week.

Let’s cover the company’s highlights.

What’s going on with the Sayona Mining share price?

Sayona Mining joined the S&P/ASX 200 Index (ASX: XJO) on Monday due to changes in the company’s market capitalisation.

Yesterday my Fool colleague Bronwyn included the company in a roundup post of other lithium shares. She noted that Sayona Mining had delivered the second-highest returns year to date out of the top five ASX lithium shares by market cap.

The company’s shares are currently up 86.5% over this period.

And then last Friday, Sayona Mining announced it would restart lithium spodumene production at its North American Lithium site in Canada.

Operations at the site are due to go live in Q1 2023.

Sayona Mining managing director Brett Lynch made the following comments regarding the restart:

We are delighted to see the continued progress towards the recommencement of lithium (spodumene) production at NAL in Q1 2023. Our project team has overcome potential challenges due to proactive forward planning and the early ordering of critical long‐lead equipment items, while the near completion of permitting and procurement puts us in an excellent position.

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