The Impact of Lithium Price on Electric Vehicle Supply Chain Based on Multi-factors Fama-French Models
Jinya Gao, Qinjian Jia, Yiwen Yuan
Abstract
Based on the dynamic changes in the price of raw Lithium and the vital application of lithium on an electric vehicle, the impact of lithium price on the stock return of the Electric Vehicle Supply Chain are investigated in this paper. Specifically, the Fama-French five factors model would be used to evaluate the impact of lithium price on stock return of Electric Vehicle Supply Chain, and stock return correlation test is applied to measure the impact of changes in lithium price on the stock return of Electric Vehicle Supply Chain. According to the analysis, the lithium price only has a negative impact on the stock return of upstream industry in the Electric Vehicle Supply Chain. In addition, the changes in lithium price only have a negative effect on the stock return of downstream industry in the Electric Vehicle Supply Chain. These results extend the researches for the lithium price impacts on corresponding industry and provides a different perspective on the study of the Electric Vehicle Supply Chain.