Guess which sector August's top performing ASX shares all came from

Lithium and battery stocks continue to deliver market leading returns in August.

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ASX shares in the lithium and battery sector have once again topped the leaderboards last month.

This is despite a sharp 10-20% drawdown across most ASX lithium shares during mid-August as lofty valuations and broader market volatility witnessed sellers take control.

The lithium sector continues to benefit from higher spot prices and the hype around increased electric vehicle adoption. This has helped many prospective explorers and emerging players surge in valuation in a short period of time.

Top performing ASX shares in August

Charger Metals NL (ASX: CHR)

The Charger Metals share price has topped the list as one of the best performing ASX shares in August. Shares in the diversified explorer surged 173% in August from 23 cents to 63 cents.

The company successfully listed on the ASX on 9 July, raising $6 million at an issue price of just 20 cents.

Charger Metals is in its early days, with an interest in the following projects:

  • A 70% interest in the Coates nickel-copper-cobalt project
  • An 85% interest in Coates North Project
  • A 70% interest in the Bynoe lithium and gold project
  • A 70% interest in the Lake Johnston lithium and gold project

The capital raised from the initial public offering will be used to fund the company's exploration activities to determine whether or not these projects can be monetised in the future.

Recent announcements from Charger Metals include the commencement of exploration activities at Bynoe and an aerial electromagnetic survey at Coates.

Novonix Ltd (ASX: NVX)

The Novonix share price rallied 75% in August from $2.58 to $4.52.

The company is an emerging battery player, focused on the development of technologies that support longer life batteries, higher efficiency, reduced material usage and reduced waste.

Novonix reported its FY21 results on 26 August, with revenues increasing 22.9% to $5.2 million and a loss before tax of $18 million.

A near-term focus for the company is to produce its own synthetic graphite used in lithium-ion batteries. The company is targeting a capacity of 10,000 tonnes per annum in early 2023 before ramping up production to 40,000 tonnes by 2025 and 150,000 tonnes by 2030.

Jindalee Resources Ltd (ASX: JRL)

Jindalee is another top-performing ASX share in the exploration space. The company owns two prospective US-based lithium projects.

The Jindalee share price added 55% in August to $3.79.

The McDermitt project is Jindalee's flagship project and what the company calls "the largest lithium deposit in the USA".

The company has a busy schedule ahead with plans to continue mining studies and an initial scoping study, obtain a permit for additional drilling and engage with US investors for additional funding.

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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