Insights

How did ASX lithium shares perform in the FY22 first quarter?

Here’s a recap of how ASX-listed lithium companies performed during the last quarter…
The post How did ASX lithium shares perform in the FY22 first quarter? appeared first on The Motley Fool Australia. –

The price of lithium continued to rage higher during the first quarter of FY22, sending ASX lithium shares skyward. This generally meant if you owned shares in a lithium producer/explorer, you enjoyed a rewarding quarter.

In fact, lithium shares bucked the trend across the broader materials sector in Q1. Looking at the S&P/ASX 200 Materials Index (ASX: XMJ), the sector was pulled down 10.5% over the 3-month duration. This was mostly from heavy losses in iron ore producers including BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO).

To grasp an understanding of which ASX lithium shares delivered the goods we need to take a closer look.

Outsized returns from these ASX lithium shares

While the S&P/ASX 200 Index (ASX: XJO) barely budged in the first quarter (increasing 0.26%), lithium companies went for a run. A large chunk of the euphoria stems from the unrelenting surge in the price of the battery-making chemical element.

According to Trading Economics, the price per tonne of lithium carbonate skyrocketed from approximately 88,800 Chinese yuan to 165,000 yuan during the quarter. This is on top of the strengthening in lithium prices that had been playing out since late 2020.

As a result, investors flocked to Aussie companies set to benefit the most from this continuing trend. In response, the majority of lithium shares on the ASX experienced upwards movement. The company undergoing the strongest share price appreciation during the quarter was AVZ Minerals Ltd (ASX: AVZ). Over the 3-month period, AVZ surged around 110% in value.

Adding to the optimism, in September AVZ announced a transaction implementation agreement with Suzhou CATH Energy Technologies, which would see CATH pay US$240 million in a joint venture to kickstart the Manono Lithium and Tin Project.

Following closely behind, these 5 other ASX lithium shares delivered outsized returns to their shareholders in Q1 FY22:

Ioneer Ltd (ASX: INR) up 90.9%

Liontown Resources Limited (ASX: LTR) up 77.8%

Vulcan Energy Resources Ltd (ASX: VUL) up 66.6%

Pilbara Minerals Ltd (ASX: PLS) up 40.9%

Orocobre Limited (ASX: ORE) up 34.9%

Interestingly, Elon Musk, CEO of Tesla Inc (NASDAQ: TSLA), shared his thoughts on lithium in the company’s annual general meeting this morning.

Musk and his company don’t foresee any lithium supply shortages, stating: “There’s lithium everywhere, so that’s not an issue. Also, lithium is maybe only 1 or 2 per cent of the [battery] cell.”

Lagging the pack

Although the far majority of ASX lithium shares experienced strong price appreciation, there was an exception. Specifically, Piedmont Lithium Inc (ASX: PLL) took a 30.1% tumble during the quarter.

This disappointing move coincided with difficulty winning over residents near its proposed open-pit lithium mine in Gaston Country, North Carolina. During a presentation in July, residents expressed discontent towards the mine proposal set out by Piedmont.

Additionally, the ASX lithium share took another hit following a class-action lawsuit being filed against it. As a result, Piedmont shareholders have missed out on the same gains that other lithium producers enjoyed.

The post How did ASX lithium shares perform in the FY22 first quarter? appeared first on The Motley Fool Australia.

Should you invest $1,000 in AVZ Minerals right now?

Before you consider AVZ Minerals, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AVZ Minerals wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 ASX 200 shares surging this week despite inflation worries

US warns Evergrande crisis could affect ‘entire world’

ASX 200 (ASX:XJO) midday update: EML crashes, mining shares rise

What happened on the US stock market last night?

October is ‘crash’ month: Will history repeat for the ASX 200?

Motley Fool contributor Mitchell Lawler owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!