Having rocketed to all-time highs in mid-2023, 2024 went decidedly the other way for Liontown Resources Ltd (ASX: LTR) shares.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed out 2023 already in a downtrend, trading for $1.65. By the time the smoke cleared on 31 December 2024, shares were changing hands for 53 cents apiece, down a painful 67.9%.
For some context, the ASX 200 gained 7.5% over the year.
Here's what put the ASX 200 lithium stock under heavy selling pressure in the year just past.
Image source: Getty Images
Why did Liontown shares crumble in 2024?
Like most every ASX lithium producer, Liontown shares were unable to overcome the intense headwinds from the ongoing global lithium oversupply.
While demand for the battery-critical metal continued to grow in 2024, the pace of that growth slowed more than many analysts had previously expected, impacted in part by lower electric vehicle (EV) sales growth. Coupled with increased supply from the miners, the lithium price continued to slide over the year to end 2024, down more than 75% from its November 2022 highs.
But if you have another look at the price chart above, you'll notice that while buy-and-hold investors will have watched their Liontown stock holdings sink, traders managing to time some of the major price swings may have done quite well.
From 25 January to 17 May, for example, Liontown shares soared by 67%. And if you'd bought shares on 6 September and then onsold them on 28 October, you could have pocketed a gain of 53%.
What happened with the lithium miner over the year?
Among the positive highlights in 2024, the miner achieved first spodumene concentrate production from its flagship Kathleen Valley lithium project in July, marking the official transition from developer to producer.
"Two and a half years ago, we set ourselves the ambitious goal of achieving first production by mid-2024. Today, we have achieved it," Liontown CEO Tony Ottaviano said at the time. "This is a monumental moment for Liontown and marks our transition from a construction project to a producer of high-quality lithium concentrate."
Still, in its full-year results, announced on 30 September, Liontown shares didn't shoot the lights out after the company reported a net loss after tax of $64.9 million. At the end of the financial year, the miner held cash and equivalents of $122.9 million.
On the same day, the company reported it had shipped its first spodumene concentrate and commenced spot sales for spodumene concentrate from Kathleen Valley, which could help support the stock longer term.
Shorter term, Liontown shares fell sharply from mid-November through to the end of 2024.
On 11 November the company reported it was changing up its lithium production plans amid the ongoing weakness in prices. Liontown said it was shifting focus to prioritise higher margin ore at its mines to help reduce operating costs.
"When market conditions change, companies need to quickly adapt to meet the market," Ottaviano said.
As for the nascent new year of 2025, Liontown shares are up by around 3% since the closing bell on 31 December.
