It says a lot that the five best-performing ASX lithium shares of 2024 include three that fell in price.
Eek.
But as ASX lithium stock investors know, that's the environment in which we find ourselves for now!
It won't be like this forever. Much hinges on commodity prices, and for the time being, they are weak.
This is due to lower demand for electric vehicles (EV) and higher global lithium supply caused by more mines producing the white metal today following the boom in lithium prices in 2021 and 2022.
The lithium carbonate price fell by 22.23% in 2024, according to Trading Economics.
Lithium prices traded between highs of about US$15,960 per tonne in March to lows of about US$9,800 per tonne in September.
The long-term decline in lithium prices has been a painful road for ASX lithium share investors.
The carbonate price has fallen from a record US$78,790 per tonne in December 2022 to US$10,385 per tonne as of 31 December 2024.
Let's see which lithium shares within the S&P/ASX All Ordinaries Index (ASX: XAO) did best in 2024 in terms of share price growth
Top 5 ASX lithium shares of 2024
Vulcan Energy Resources Ltd (ASX: VUL)
Vulcan Resources was the strongest gainer among ASX All Ords lithium shares in 2024.
The Vulcan Resources share price rose by 87.72% to close the year at $5.35.
Vulcan's goal is to deliver Europe's first locally sourced battery-grade lithium hydroxide from raw material to end product. The company achieved this in November when it commenced operations at its lithium hydroxide optimisation plant, called the Vulcan Central Lithium Electrolysis Optimisation Plant (CLEOP).
In recent news, Vulcan conducted an A$184 million capital raise at $5.85 per new share last month to start phase one of the Lionheart Project in Germany's Upper Rhine Valley.
Ioneer Ltd (ASX: INR)
The Ioneer share price rose by 6.67% in 2024 to close the year at 16 cents per share.
In October, the US Bureau of Land Management granted final approval for Ioneer's Rhyolite Ridge Lithium-Boron Project in Nevada.
This made Rhyolite Ridge the first US lithium project approved under the Biden administration. Construction will begin this year.
The mine is expected to produce enough lithium to power 370,000 electric vehicles per year.
Rio Tinto Ltd (ASX: RIO)
Rio Tinto is known as an iron ore giant.
However, given its growing investment in the white metal — best characterised by its announced US$6.7B takeover of Arcadium Lithium PLC (ASX: LTM) last year– it is also fair to define it as an ASX lithium share.
The Rio Tinto share price fell 13.42% in 2024, closing at $117.46 per share on 31 December.
Last year, Rio Tinto focused on expanding its lithium and copper operations.
Last month, Rio announced a US$2.5 billion expansion of its Rincon Lithium Project in Argentina.
The company also announced the signing of a term sheet for the Winu copper-gold project joint venture (JV) in Western Australia with Sumitomo Metal Mining Co Ltd.
Atlantic Lithium Ltd (ASX: A11)
Atlantic Lithium shares dropped 16.25% in 2024 to finish the year at 34 cents per share.
In October, Atlantic Lithium and its JV partner Piedmont Lithium Inc (ASX: PLL) received final regulatory approval for Ghana's first lithium mine, called the Ewoyaa Lithium Project.
In the same month, Atlantic Lithium raised US$6.7 million through an equity placement at 23 cents per share. It will use the funds to finalise the Definitive Feasibility Study and make a Final Investment Decision.
Develop Global Ltd (ASX: DVP)
This ASX All Ords lithium share fell by 17.31% in 2024 to close at $2.34 on 31 December.
In latest news, Develop Global says it is on track to achieve first concentrate production and cash flow at the Woodlawn Copper-Zinc Mine in NSW in the June quarter.
Mining teams began moving to the site last month. The first underground ore production is expected to commence in the March quarter.
