Lithium stocks continue to tumble on the back of concerns that a flood of new lithium supply is set to enter the market.

About 75 per cent of the ASX’s 100-or-so lithium stocks have slumped between 2 per cent and 90 per cent in the past six months (see table below). And key lithium stocks have seen further falls this month.

That’s despite a new call for the West Australian government to exploit a “once-in-a-generation” chance to make lithium-ion batteries in WA, reported today in the West Australian newspaper.

“If one more step was taken down the value chain into electro-chemical processing, by 2025 Australia would have a share of a further $297 billion” of the lithium-ion battery market, the Association of Mining and Exploration Companies said in a submission to a parliamentary inquiry.

Meanwhile, ASX-listed lithium stocks continue to suffer.

AVZ Minerals has lost almost a third of its value this month, for example — despite confirming on August 2 it had its foot on the world’s biggest lithium deposit.

Others such as Tawana and Kidman have lost ground over the same period.

“The last month or so has sort of taken a bit of the wind out of the sails with trade war feelings in the market,” Hedley Widdup, a fund manager for investment firm Lion Selection Group, told Stockhead at last week’s Diggers & Dealers Mining Forum in Kalgoorlie.

“It’s affected base metals more than most things, but with the US dollar trading the way it has it has affected gold as well.

“Even the bubble of enthusiasm around things like lithium and cobalt — they’re getting attention but it seems like people are letting off steam more than high-fiving.”

Last week investment bank Macquarie said that the lithium market was “sleepwalking into a tsunami of oversupply”.

>> Scroll down for a table showing the six-month and 12-month share price returns of ASX lithium stocks

“The long-reigning quadropoly that maintained market balance for years have been (and are being) joined by a wave of enthusiastic newcomers, and now instead of controlling supply the original players are announcing expansion projects,” Macquarie’s wealth management division said in a note titled “Lithium: Welcome to Thunderdome” sent to investors.

“It may be that they hope for lithium prices to stay at today’s high levels – or it may be that they see the oversupply coming and intend to be the fittest (i.e. lowest cost) survivors.”

Market forecaster Roskill has backed up that notion, saying that an oversupply could start from as early as next year.

“Electric vehicle sales in China remain strong, albeit some uncertainty caused by changes to incentive policy in mid-2018,” Roskill said.

“As more mineral projects commission in Australia, however, Roskill sees a market already stockpiling spodumene concentrate (before factoring any [direct shipping ore] that increasingly looks stranded) and becoming significantly oversupplied in 2019 under current projections.”

The comments follow the start of production at Pilbara Minerals’ (ASX:PLS) massive Pilgangoora lithium and tantalum project in Western Australia’s Pilbara region.

Here’s a table showing the six-month and 12-month share price returns of ASX stocks with exposure to lithium:

ASX code Company 6-month price change 12-month price change Price Aug 14 (intraday) Market Cap
DMI DEMPSEY MINERALS 1.59090909091 4.7 0.285 27.1M
GWR GWR GROUP 1.35714285714 1.75 0.165 41.7M
AGO ATLAS IRON 0.653846153846 1.26315789474 0.043 404.0M
DEG DE GREY MINING 0.48 3.625 0.185 67.1M
HWK HAWKSTONE MINING 0.458333333333 1.5 0.035 11.0M
TAR TARUGA MINERALS 0.444444444444 1.36363636364 0.13 17.7M
AVL AUSTRALIAN VANAD 0.4 3 0.056 87.2M
ESR ESTRELLA RESOURC 0.3 0.04 0.026 12.3M
BSM BASS METALS 0.285714285714 1.45454545455 0.027 66.4M
ENT ENTERPRISE METAL 0.266666666667 0 0.019 7.3M
ARE ARGONAUT RESOURC 0.190476190476 2.125 0.025 38.9M
WKT WALKABOUT RESOUR 0.185567010309 0.597222222222 0.115 31.2M
ZNC ZENITH MINERALS 0.125 0.875 0.18 38.3M
LI3 LITHIUM CONSOLID 0.12 0.0769230769231 0.14 12.7M
KSN KINGSTON RESOURC 0.0909090909091 0.6 0.024 29.4M
VMC VENUS METALS COR 0.0869565217391 0.136363636364 0.125 10.9M
LCD LATITUDE CONSOLI 0.08 0.928571428571 0.027 7.4M
ZEU ZEUS RESOURCES L 0.0769230769231 0.4 0.014 2.5M
PLS PILBARA MINERALS 0.0359281437126 1.21794871795 0.865 1.5B
PLL PIEDMONT LITHIUM 0 0.752577319588 0.17 95.1M
ADN ANDROMEDA METALS 0 0.75 0.007 7.0M
MLS METALS AUSTRALIA 0 0.666666666667 0.005 11.7M
MZN MARINDI METALS L 0 0.428571428571 0.01 17.8M
IEC INTRA ENERGY COR 0 0.0833333333333 0.013 5.0M
MXR MAXIMUS RESOURCE 0 -0.5 0.001 3.2M
KLH KALIA 0 -0.529411764706 0.008 20.1M
KAI KAIROS MINERALS -0.0277777777778 1.33333333333 0.035 29.3M
MZZ MATADOR MINING -0.0294117647059 0.736842105263 0.33 17.8M
KOR KORAB RESOURCES -0.0357142857143 0.5 0.027 8.2M
AOU AUROCH MINERALS -0.047619047619 -0.333333333333 0.1 9.9M
CAZ CAZALY RESOURCES -0.0512820512821 -0.0263157894737 0.037 8.5M
DGR DGR GLOBAL -0.054347826087 -0.304 0.087 53.3M
RIO RIO TINTO -0.0594498669033 0.169977924945 74.2 117.5B
BAU BAUXITE RESOURCE -0.0655737704918 -0.208333333333 0.057 12.2M
NLI NOVO LITIO -0.0769230769231 0.142857142857 0.048 17.9M
ARM AURORA MINERALS -0.0882352941176 -0.354166666667 0.031 3.6M
POS POSEIDON NICKEL -0.093023255814 0.772727272727 0.039 43.5M
EUR EUROPEAN LITHIUM -0.0952380952381 3.22222222222 0.19 103.7M
EMH EUROPEAN METALS -0.108695652174 -0.4875 0.41 58.0M
TRT TODD RIVER RESOU -0.111111111111 0.0434782608696 0.12 9.2M
AEE AURA ENERGY -0.130434782609 -0.130434782609 0.02 21.4M
VXR VENTUREX RESOURC -0.133333333333 0.857142857143 0.013 46.8M
SI6 SIX SIGMA METALS -0.153846153846 -0.0833333333333 0.011 5.0M
ORN ORION MINERALS L -0.155555555556 0.727272727273 0.038 56.3M
CXO CORE EXPLORATION -0.15625 -0.217391304348 0.054 34.2M
HNR HANNANS -0.181818181818 0.285714285714 0.018 35.6M
TAW TAWANA RESOURCES -0.196035242291 0.644144144144 0.365 211.0M
DTM DART MINING NL -0.2 1 0.008 6.9M
SEI SPECIALITY METAL -0.2 1.5 0.02 11.1M
GXY GALAXY RESOURCES -0.200598802395 0.412698412698 2.67 1.1B
AGY ARGOSY MINERALS -0.202898550725 2.3950617284 0.275 248.0M
SRK STRIKE RESOURCES -0.205882352941 0.255813953488 0.054 7.8M
VMS VENTURE MINERALS -0.212121212121 0.04 0.026 13.5M
BGS BIRIMIAN -0.213483146067 0.458333333333 0.35 84.1M
KTA KRAKATOA RESOURC -0.222222222222 0.0294117647059 0.035 4.1M
PM1 PURE MINERALS -0.222222222222 -0.391304347826 0.014 4.4M
MIN MINERAL RESOURCE -0.225708502024 0.125 15.3 2.9B
NMT NEOMETALS -0.233766233766 0.0172413793103 0.295 160.5M
CMC CHINA MAGNESIUM -0.24 0.117647058824 0.019 6.0M
LTR LIONTOWN RESOURC -0.243243243243 2.11111111111 0.028 30.9M
AJM ALTURA MINING -0.25 0.588235294118 0.27 491.4M
DEV DEVEX RESOURCES -0.25 0.2 0.006 6.6M
PIO PIONEER RESOURCE -0.285714285714 0.176470588235 0.02 29.0M
TKM TREK METALS -0.285714285714 -0.259259259259 0.02 6.2M
CHK COHIBA MINERALS -0.3 -0.363636363636 0.007 3.9M
GSC GLOBAL GEOSCIENC -0.333333333333 0.333333333333 0.26 382.1M
LKE LAKE RESOURCES -0.333333333333 1.25 0.09 28.9M
SUH SOUTHERN HEMISPH -0.340659340659 -0.259259259259 0.06 5.1M
LPI LITHIUM POWER IN -0.345238095238 -0.0833333333333 0.275 71.7M
NVA NOVA MINERALS -0.351351351351 3 0.024 18.4M
MQR MARQUEE RESOURCE -0.3625 0.545454545455 0.255 10.9M
KDR KIDMAN RESOURCES -0.370165745856 0.932203389831 1.14 455.5M
LIT LITHIUM AUSTRALI -0.371428571429 -0.0833333333333 0.11 47.9M
MTC METALSTECH -0.38064516129 -0.36 0.096 11.1M
ORE OROCOBRE -0.381736526946 0.342216444589 4.13 1.1B
PSM PENINSULA MINES -0.384615384615 -0.619047619048 0.008 5.7M
SCI SILVER CITY MINE -0.391304347826 0.166666666667 0.028 6.9M
DHR DARK HORSE RESOU -0.4 2 0.012 23.1M
BMT BERKUT MINERALS -0.405405405405 -0.56862745098 0.11 6.0M
SYA SAYONA MINING -0.40625 1.92307692308 0.038 65.2M
THR THOR MINING-CDI -0.416666666667 1.1875 0.035 22.9M
PSC PROSPECT RESOURC -0.416666666667 -0.0344827586207 0.028 55.5M
ADV ARDIDEN -0.421052631579 -0.388888888889 0.011 18.4M
MCT METALICITY -0.428571428571 -0.473684210526 0.02 11.6M
OAR OAKDALERESOURCES -0.428571428571 -0.6 0.02 1.3M
BOA BOADICEA RESOURC -0.441860465116 -0.04 0.12 6.3M
ASN ANSON RESOURCES -0.447368421053 9.5 0.105 48.7M
INF INFINITY LITHIUM -0.471428571429 -0.564705882353 0.074 14.1M
CFE CAPE LAMBERT RES -0.481481481481 0.272727272727 0.028 28.3M
TKL TRAKA RESOURCES -0.492307692308 0.736842105263 0.033 10.9M
LRS LATIN RESOURCES -0.5 0.5 0.006 16.7M
CUL CULLEN RES -0.5 0 0.001 2.6M
4CE FORCE COMMODITIE -0.5 -0.0952380952381 0.038 16.5M
MOX MONAX MINING -0.5 -0.4 0.003 2.2M
LPD LEPIDICO -0.509433962264 1 0.026 76.1M
AMD ARROW MINERALS L -0.536585365854 -0.269230769231 0.019 5.8M
CGM COUGAR METALS NL -0.555555555556 -0.428571428571 0.004 3.7M
CAS CRUSADER RESOURC -0.59375 -0.773913043478 0.026 13.6M
AVZ AVZ MINERALS -0.62962962963 0.0989010989011 0.1 187.0M
MTH MITHRIL RESOURCE -0.636363636364 -0.542857142857 0.016 3.2M
CAD CAENEUS MINERALS -0.666666666667 -0.666666666667 0.001 12.9M
N27 NORTHERN COBALT (listed 2017) -0.682926829268 -0.35 0.13 6.6M
PNN PEPINNINI LITHIU -0.685714285714 -0.352941176471 0.011 6.4M
RLC REEDY LAGOON -0.707317073171 -0.294117647059 0.012 4.8M
GPP GREENPOWER ENERG -0.733333333333 -0.75 0.004 5.8M
WML WOOMERA MINING L -0.901 -0.901 0.099 11.2M