How ASX 200 lithium stocks like Liontown, Mineral Resources and PLS shares again beat the benchmark in May

S&P/ASX 200 Index (ASX: XJO) lithium stocks broadly enjoyed another month of solid gains in May.

From market close on 30 April through to the closing bell on 29 May, the ASX 200 gained a respectable 0.8%.

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

• Mineral Resources Ltd (ASX: MIN) shares gained 15.3% to close May at $73.47 apiece
• Liontown Resources Ltd (ASX: LTR) shares gained 3.0% to close May at $2.42 apiece
• Pls Group Ltd (ASX: PLS) – formerly Pilbara Minerals – shares gained 7.3% to close May at $6.46 each
• IGO Ltd (ASX: IGO) shares gained 28.9% to close May at $9.58 apiece

The big Aussie lithium producers all caught tailwinds from the ongoing global resurgence in lithium prices.

Spodumene (a lithium bearing ore) prices leapt 13% over the first half of May, before retracing to trade up around 3% for the month at 29 May.

What’s been happening with these ASX 200 lithium stocks longer term?

Spodumene prices have since gained another 2% or so through to today, which sees the lithium price up around 196% since this time last year.

As you’d expect, that’s put a rocket under ASX 200 lithium stocks.

How much of a rocket?

Well, over the past 12 months the ASX 200 has gained 3.2%.

Here are the types of returns investors in the Aussie lithium producers have reaped over this same period:

• IGO shares are up 158.6%
• Mineral Resources shares are up 277.1%
• Liontown shares are up 339.3%
• PLS shares are up 481.6%

Boom!

Why did IGO shares outperform in May?

You may have noticed that the 28.9% IGO share price gain in May significantly outpaced the gains posted by Mineral Resources, PLS or Liontown shares over the month.

With no price sensitive information released by any of the ASX 200 lithium stocks in May, that outperformance looks to have been driven by bargain hunters, after IGO closed out April with a whimper.

Indeed, IGO shares crashed 17.9% on 24 April after the miner downgraded its full year spodumene production guidance for its flagship Greenbushes hard-rock lithium miner, located in Western Australia.

Investors were reaching for their sell buttons when IGO cut FY 2026 production guidance for Greenbushes to 1,375kt to 1,425kt. That was down from prior guidance of 1,500kt to 1,650kt.

Commenting on the downgrade on the day, IGO CEO Ivan Vella said:

Greenbushes production result this quarter is disappointing. Performance has been challenged across a number of metrics including safety, feed grade, recoveries, maintenance execution and plant reliability.

But judging by the big share price rebound in May, ASX investors believe IGO can address these issues moving forward.

The post How ASX 200 lithium stocks like Liontown, Mineral Resources and PLS shares again beat the benchmark in May appeared first on The Motley Fool Australia.

More reading

• Which ASX lithium shares to buy as the market recovers: 2 brokers weigh in
• Buy, hold, sell: 3 very popular ASX mining stocks
• Top 10 ASX shares bought and sold by investors in May
• Buy, hold, sell: BHP, PLS Group, CBA shares
• How much could the PLS Group share price rise in the next year?

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.