It's no secret that lithium shares have had a good run over recent years, with many making their way onto the iconic S&P/ASX 200 Index (ASX: XJO).
Many investors who put cash into three lithium favourites many moons ago – and held it there – will likely be thankful they did.
Of course, it's tempting to take profits when things are going well. Those who invested in the Pilbara Minerals Ltd (ASX: PLS) initial public offering (IPO) could have walked away when their investment's value had increased four-fold in 2018.
However, if they held onto their shares, they would have seen the company reach profitability in financial year 2022 and their stock rocket to more than 20 times what they paid.
So without further ado, here are three ASX 200 lithium shares that, together, have turned a $10,000 investment into half a million dollars over their listed life.
3 ASX 200 lithium shares that turned $10,000 into $500,000
If an investor split $10,000 between these three ASX 200 lithium shares at their respective IPOs, investing $3,333 in each, here's how their money would have worked for them.
| ASX 200 lithium company | Year floated | Total return since | Recent value of $3,333 invested |
| Pilbara Minerals Ltd (ASX: PLS) | 2010 | 2,295% | $79,825 |
| Allkem Ltd (ASX: AKE) | 2007 | 5,660% | $191,981 |
| Mineral Resources Limited (ASX: MIN) | 2006 | 7,558% | $255,234 |
The most recently listed lithium winner is Pilbara Minerals.
It offered new shares for 20 cents apiece as part of a prospectus back in 2010. That saw it re-listing under its current name. At its most recent close, Pilbara Minerals shares were trading at $4.79.
Allkem has posted the second-best return of the trio after handing out shares for 25 cents each as part of its IPO.
Of course, the company went by the name of Orocobre back then. It was renamed Allkem in 2021 following its merger with formerly ASX-listed Galaxy Resources.
Allkem shares closed Monday's trade at $14.40.
Finally, the Mineral Resources share price has posted the biggest gain since its listing in 2006. Though, the company hadn't established its lithium leg at that time.
Instead, it listed as a mining services provider, offering its shares for 90 cents apiece under its prospectus. Nowadays, they're swapping hands for a whopping $68.92 at last close.
Does the future still look bright for lithium stocks?
The performance of ASX 200 lithium shares is highly dependent on the materials' value. Fortunately, that's expected to climb in the near future.
The federal government believes financial year 2023 will be a record-breaking year for Australia's lithium exports – driven by record-high lithium prices.
Lithium hydroxide is expected to trade at $51,510 a tonne in 2023. The material's price will likely be driven by demand for electric vehicles.
However, the value of both lithium and Australia's lithium exports are tipped to ease in financial year 2024.
