The explosive lithium trend tempered in 2022 following an incredible year for ASX lithium shares in 2021.
Even some of the most profitable companies in the industry rounded out the year with relatively mediocre returns compared to the year prior. For example, Pilbara Minerals Ltd (ASX: PLS) posted a reasonable 17% gain last year. However, this pales in comparison to the remarkable 133% climb in 2021.
Meanwhile, many lithium players still in the pre-production stages were dealt hammering blows to their share prices. Investors decisively turned away from money-hungry investments throughout the year as capital became more expensive due to rising rates.
Here are the ASX lithium shares that were hit the hardest during a challenging year.
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Harrowing hardship for these ASX lithium shares
Galan Lithium Ltd (ASX: GLN)
The Argentina and Australia lithium project developer had a busy year drilling and testing across its sites during 2022. Most notably, Galan Lithium finished the year by acquiring the remaining 20% of the Greenbushes South Lithium Project in December to give it full ownership of the development.
However, the capital-intensive process of exploration while pre-revenue meant Galan widened its losses. In FY22, the company reached $5.08 million in net losses, deepening from $0.9 million.
It appears investors were less enthused about holding out for the possibility of future revenue amid the economic backdrop. In turn, this ASX lithium share suffered a substantial 45% fall in its share price in 2022. At present, Galan Lithium is fetching $1.04 per share with a market capitalisation of $320 million.
Ioneer Ltd (ASX: INR)
The second worst-performing ASX lithium share might be surprising given its achievements last year. Ioneer made major strides toward shoring up customers for its future anticipated lithium supply with offtake agreements with EcoPro Group, Ford, and Prime Planet Energy & Solutions Inc.
Although, with production not yet underway, Ioneer likewise dialled up the losses. At the end of FY22, the bottom line had blown out to $12.6 million in the red — worsening from the $10.3 million worth of bleeding in the prior fiscal year.
As such, the market responded with a 52.5% slashing of the Ioneer share price in 2022. Today, this ASX lithium share goes for 40 cents apiece, giving it a market cap of $808 million.
Lepidico Ltd (ASX: LPD)
Turning to the ASX lithium company that fared the worst in 2022. Lepidico was unable to catch a break last year as the small-cap persevered with exploration in Namibia and the United Arab Emirates.
Positively, Lepidico made headway on phase 1 of its projects, receiving cost estimates for further development. The company estimated the costs of an integrated mine, concentrator, and chemical plant to be US$266 million. Though, Lepidico still lacks revenue and only held $8 million in cash at the end of June 2022.
Over the course of 2022, this ASX lithium share tumbled 58%. At the time of writing, Lepidico shares are swapping hands at 1.5 cents each with a market cap of around $107 million.
