The Lake Resources share price plummeted 49% in June. Here’s why

It was a month to forget for the ASX lithium share. Here are the details.

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Key points

  • Last month was a shocker for the Lake Resources share price. It tumbled 49% to close June at 79 cents
  • Though, it wasn't alone in its suffering. ASX lithium shares experienced a major sell-off last month
  • Unfortunately, the company's addition to the ASX 200, the appointment of finance institutions as coordinators for the Kachi Lithium Project, and a pivot towards North American and Asian lithium supply chains wasn't enough to stop its stock from tumbling

The Lake Resources NL (ASX: LKE) share price lost nearly half its value last month. The now-S&P/ASX 200 Index (ASX: XJO) lithium stock suffered alongside most of its peers through a June sell-off event.

At the end of June, the Lake Resources share price was 79 cents, 49% lower than it was at the final close of May. For context, the ASX 200 fell nearly 9% last month.

Let’s take a closer look at what went wrong for the ASX 200 newbie.

What weighed on the Lake Resources share price in June?

The Lake Resources share price suffered through an ultimately disappointing rollercoaster of a month in June. It all started with a major lithium sell-off.

ASX lithium shares tumbled on 1 June amid a bearish note out of Goldman Sachs, an Argentinian export reference price, and reports a major electric vehicle manufacturer was considering producing its own lithium.

Lake Resources’ stock slumped nearly 13% that day. While its worst falls were still to come, there was plenty of good news from Lake Resources over the rest of June.

It was added to the ASX 200 and appointed two leading finance institutions as joint coordinators for its Kachi Lithium Project.

Additionally, the company told the market of its shift towards North American and Asian lithium supply chains.

However, it also announced its North America managing director Steve Promnitz had stepped down, seemingly without cause or notice.

In the aftermath, the company’s chair Stu Crow stepped up to the role of executive chair for six months. Crow will oversee the appointment of a new CEO and board members, and the establishment of US offices.

Despite last month’s struggles, the Lake Resources share price is still trading in the long-term green. It has gained 148% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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.

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