3 ASX 200 lithium stocks that leapt beyond 20% in January

Company news and continuing high lithium prices were behind these share price surges.

Bronwyn Allen

Author bio Bronwyn has 28 years of experience in journalism, copywriting, and media relations. She began her career as a reporter with News Corporation in Sydney in 1997. She later worked for two real estate corporations in communications and PR roles, then started her own freelance copywriting and publicity business. A keen shares investor, Bronwyn joined the Motley Fool Australia team as a copy editor and writer in June 2021. Areas of expertise ASX shares and ETFs News writing Macroeconomic trends Real estate Education Diploma in Journalism, Macleay College Social media LinkedIn Favorite investment quote "Don't look for the needle in the haystack. Just buy the haystack." — John C. Bogle, Vanguard founder and pioneer of index investing for ordinary investors

Published February 3, 2023 7:45 am AEDT

The S&P/ASX 200 Index (ASX: XJO) flew 6.2% higher during January and three ASX 200 lithium stocks were among its best performers.

Let's take a look at why.

Three satisfied miners with their arms crossed looking at the camera proudly. — Image source: Getty Images

Sayona Mining Ltd (ASX: SYA)

Sayona was a stand-out ASX 200 lithium stock in January. Between the close on 30 December and the close on 31 January, the share price rose by 37%. And that meteoric rise has continued, with Sayona Mining shares rising 6.7% yesterday for a collective increase of more than 40% already in 2023.

Continuing high lithium prices and optimism that prices may stay higher for longer boosted Sayona's fortunes. The company also reported progress with the restart of its North American project.

Pilbara Minerals Ltd (ASX: PLS)

This ASX 200 lithium stock charged 27% higher in January. A strong quarterly update gave the stocks a big nudge northwards. Production, sales volumes, and unit costs were all up quarter over quarter (qoq). Plus, the company increased its cash balance by a whopping 62% qoq to $2.226 billion.

That's handy, given Pilbara's plans to pay a maiden dividend in FY23. The company intends to pay 20% to 30% of its free cash flow as dividends. Also in January, Pilbara Minerals announced progress with the expansion of its Pilgangoora Project in Western Australia with the awarding of a construction contract.

Liontown Resources Ltd (ASX: LTR)

Getting an honourable mention here is Liontown, with its shares rising by 19% over January. The ASX lithium company released an update on its Kathleen Valley Lithium Project, revealing good and bad news. The bad: Construction is going to cost more than previous estimates. The good: This is partly due to expanded capacity, which will increase the initial throughput rate by 20% to 3Mtpa.

We also learned that Liontown chair Tim Goyder bought an extra $1.5 million worth of shares on-market during the month. The market wasn't so pleased with the quarterly report on 31 January, with Liontown shares dipping 5.7%. This took the shine off an otherwise strong performance from the ASX 200 lithium stock over the month.

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