Why did ASX 200 lithium stocks like PLS, Liontown and Mineral Resources shares get smashed in June?

After a record-breaking year, S&P/ASX 200 Index (ASX: XJO) lithium stocks had a month to forget in June.

From market close on 29 May through to the closing bell on 30 June, the ASX 200 gained 0.5%.

Here’s how these ASX 200 lithium stocks performed over the month just past:

• Mineral Resources Ltd (ASX: MIN) shares tumbled 15.5% to close June at $62.07 apiece
• Liontown Resources Ltd (ASX: LTR) shares fell 30.2% to close June at $1.69 apiece
• PLS Group Ltd (ASX: PLS) – formerly Pilbara Minerals – shares dropped 22.3% to close June at $5.02 each
• IGO Ltd (ASX: IGO) shares tumbled 23.1% to close June at $7.37 apiece

What sent ASX 200 lithium stocks crashing lower?

The common headwind pressuring all the big Aussie lithium producers was a sharp pullback in spodumene (a lithium-bearing ore) prices. Spodumene prices fell around 12% in June, according to data from Trading Economics.

Though it’s important to note that the spodumene price remains up around 160% over past 12 months, which also still sees the ASX 200 lithium stocks racing ahead of the 1.5% one-year gains posted by the benchmark index.

Here’s what I mean (price data below through to 2 July):

• Mineral Resources shares are up 183.9% in 12 months
• Liontown shares are up 143.9% in 12 months
• PLS shares are up 273.0% in 12 months
• IGO shares are up 80.4% in 12 months

Which helps put the June retrace into some perspective!

What else moved the Aussie miners in June?

PLS shares closed down 4.7% on 19 June after the ASX 200 lithium stock reported that it had approved up to $175 million of spending ahead of the final investment decision (FID) at its P2000 Project, within its Pilgangoora hard-rock lithium operation.

The miner is studying the potential to increase Pilgangoora’s concentrate production capacity to around 2 million tonnes a year.

PLS CEO Dale Henders noted:

P2000 has the potential to represent the next major phase of growth at Pilgangoora and further strengthen PLS’ position as one of the world’s leading lithium producers. This pre-FID capital expenditure preserves optionality and maintains momentum along the critical path.

By progressing long-lead procurement, engineering and early works now, we are positioning PLS to respond to future lithium demand while retaining optionality for the timing of any final investment decision.

Mineral Resources was the only other ASX 200 lithium stock to release major news in June.

Mineral Resources shares closed down 2.5% on 25 June after the diversified miner announced that its Western Australia-based Lucky Bay Garnet Project would enter care and maintenance commencing on 1 July.

The company said it expects to book a non-cash impairment on the written down value of Lucky Bay of around $40 million for FY 2026.

The post Why did ASX 200 lithium stocks like PLS, Liontown and Mineral Resources shares get smashed in June? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.