It's been a rough year for the S&P/ASX 200 Index (ASX: XJO). It's tumbled 6% since early 2022. Fortunately, however, some sectors have managed to dodge the carnage – take lithium shares for instance.
Most ASX 200 lithium shares have blown the market's performance out of the water this year. Meanwhile, more and more investors traded in companies involved with the battery-making material.
In fact, two of the market's biggest lithium stocks – Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) – were found to be the most popular shares among ASX investors, according to data from trading and superannuation platform Superhero.
So, why have investors doubled down on lithium shares despite the market's suffering this year? Let's take a look.
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Why did investors flock to ASX 200 lithium shares in 2022?
Lithium has been all the rage on the ASX 200 this year. Indeed, the number of lithium stocks finding themselves at home on the index has jumped monumentally in 2022.
Core Lithium was among those added to the ASX 200, taking its spot in June alongside Lake Resources N.L. (ASX: LKE). Fellow lithium hopeful Sayona Mining Ltd (ASX: SYA) was added in September.
And, for the most part, they've outperformed. Shares in Core Lithium have posted the biggest gain, jumping 71% year to date.
Those of Pilbara Minerals and Sayona have lifted 14% and 50% respectively year to date, while shares in Allkem Ltd (ASX: AKE) and Mineral Resources Ltd (ASX: MIN) have also posted notable gains, rising 10% and 39%.
Such performance could arguably have been a self-fulfilling prophesy – as more ASX investors aimed to get in on the gains they might have driven lithium shares' popularity, and prices, higher.
Though, it wasn't all green for ASX lithium shares. Stock in Lake Resources and Liontown Resources Ltd (ASX: LTR) fell 22% and 14% over the period.
What else might have driven the market to double down on lithium this year despite the ASX 200's suffering? The trend emerged in late 2021 and has been consistent through 2022, Superhero co-founder and CEO John Winters said, continuing:
With Australia one of the world's biggest lithium producers as well as an increased focus on renewable energy and electric vehicles, it's no surprise that [many of the] most traded Australian companies on Superhero this year [are involved with] lithium.
Speaking of electric vehicles, Tesla Inc (NASDAQ: TSLA) remained the platform's most traded US share in 2022 despite the stock having fallen 63% so far this year.
