This study examines whether positive and negative shocks in crude oil prices are asymmetrically associated with movements in the stock prices of five major lithium mining corporations. Unlike studies that mainly examine linear co-movement between oil, lithium, and related financial markets, this study focuses on whether upward and downward oil-price movements transmit differently to lithium-oriented equities. Using the asymmetric causality test of Hatemi-J (2012), the results show no evidence that positive oil-price shocks predict positive movements in the stock prices of lithium mining corporations considered here. In contrast, negative oil-price shocks are associated with negative movements in most of these stock prices. The implications are therefore relevant for shareholders, portfolio managers, financial analysts, and corporate managers seeking to understand the exposure of lithium-oriented equities to oil-market downturns.
