S&P/ASX 200 Index (ASX: XJO) lithium shares faced some stiff headwinds in November amid speculations of a near-term oversupply of the battery critical metal in China.
The month just past saw a strong performance from the ASX 200. The benchmark index gained 6.1% from the closing bell on 31 October through to yesterday's close.
But it was a harder slog for lithium stocks.
Of the five ASX 200 lithium shares, only two posted gains. And only one of those smashed the benchmark returns.
So, without further ado…
The two runners up
The third best performing ASX 200 lithium share in November was Core Lithium Ltd (ASX: CXO).
Core Lithium shares finished October trading for $1.39 and closed out November worth $1.36, down 2.2%.
The first half of the month was dramatically different from the latter half, with Core Lithium galloping higher over the first weeks to hit new-all time highs on 14 November.
That was right about when lithium prices were also at record highs and right when China looked to be ready to ease its economy hampering COVID zero policies.
Then a surge in new COVID cases and unprecedented protests against the rolling lockdowns in the world's most populous nation hit investor sentiment and sent lithium prices lower.
ASX lithium stocks more broadly were also hit with news that Chinese battery manufacturers have overproduced in 2022, exceeding EV manufacturers' near-term demand.
And Core Lithium was hit with some sell recommendations towards the end of November, including from Jarden Securities.
Which brings us to our second best performing ASX 200 lithium share, IGO Ltd (ASX: IGO).
IGO shares ended October trading for $15.29 and finished November at $15.40, up 0.7%.
IGO also charged higher over the first weeks of the month before being hit by many of the same headwinds impacting all the ASX 200 lithium shares.
Early in November, IGO shares got a big lift after the company reported $1.8 billion in sales revenue from its lithium business for the three months ending 30 September. That was more than double the prior quarter's sales revenue and led to a 136% increase in after tax profits.
The top-performing ASX 200 lithium share in November
Only one ASX 200 lithium share ended the month posting hefty gains.
Namely, Mineral Resources Limited (ASX: MIN).
Mineral Resources closed out October trading for $73.13 per share and finished off November trading for $87.42 per share, up 19.5%.
The miner hit a series of new all-time highs over the month and showed remarkable resilience to the headwinds dragging its competitors lower.
On 18 November, the miner dispelled rumours that it was looking to spin off its lithium segment. The company has four business segments — iron ore, energy (gas), lithium, and mining services.
"I've got no plans right now to go out there and to peel off any of those four business units," Mineral Resources managing director Chris Ellison said. "Right now we have got all the cash that we need to develop Ashburton and to develop the lithium business out."
The ASX 200 lithium share gained 5% over the next four trading days.
