At the LME, our objective is always to support our physical and financial communities with the products and services needed to manage price risk effectively.
We have been working closely with the electric vehicle (EV) and battery industries to identify and develop risk management solutions that are tailored to their requirements.
Some key battery metals such as:
- nickel
- cobalt
- molybdenum and
- lead
are already well established on the LME. We've introduced futures contracts to provide further hedging and trading opportunities for battery materials. Our cash-settled LME Cobalt (Fastmarkets MB)contract launched in 2019. We also worked in partnership with Fastmarkets MB again to develop a LME Lithium Hydroxide CIF (Fastmarkets MB) contract, which launched in July 2021.
Of course, battery materials are just one part of the EV revolution and the LME is home to many of the metals and materials which underpin it. Almost every industrial metal you can think of is used by the EV industry in some way, from aluminium through to zinc. At the same time, the infrastructure for renewable energy generation and the storage and distribution of that energy will also require significant quantities of metal to support the transition to a more sustainable future.
EV metals
We have worked closely with the EV and battery materials metals markets to create a suite of contracts designed to support your risk management needs.
Powering all our futures
The EV revolution is key to a more sustainable future and we're here to help drive the transition. We have been working closely with the EV and battery industries to identify and develop risk management solutions that are tailored to fit their requirements.
Aluminium: supporting the infrastructure of the energy transition
Aluminium has been a cornerstone of the LME’s offering for over 40 years, with contracts covering primary aluminium, alloys, regional premiums, alumina and used beverage cans – supporting the full value chain in managing price risk. The LME’s primary aluminium contract offers unmatched liquidity and market depth, both in terms of average daily volume and open interest.
Aluminium’s role in the energy transition has been growing exponentially for some time. Electric vehicles (EVs) use 20–30% more aluminium than internal combustion engine (ICE) vehicles due to its lightweight properties, which help extend range and reduce battery costs [1]. For every 100kg of weight saved, EV mileage can increase by around 10%, and battery costs may drop by 20%.
Aluminium is widely used in EV chassis, bodywork, battery housings and structural components. As EV adoption accelerates, global aluminium consumption is projected to rise by up to 35% by 2030, driven primarily by the automotive sector [1].
Beyond vehicles, aluminium is critical to solar panels, wind turbines, and transmission infrastructure – making it one of the most important materials in the energy transition [2]. By 2040, energy transition sectors are expected to account for 37% of total aluminium demand[3].
With a comprehensive suite of contracts, the LME enables stakeholders across the EV and energy value chains to hedge and trade aluminium price risk effectively.
Explore the LME aluminium suite
References[1] Aluminum Prices Elevated By Growing EV Use
[2] Aluminium Demand to Benefit from 'Under-Appreciated' Role in Energy Transition
[3] Aluminium at a Crossroads: Synchronising Supply Growth With Decarbonisation
Cobalt: supporting safer, longer-lasting batteries
The LME offers both physically and cash-settled cobalt contracts, enabling participants across the value chain to hedge price risk. Our physically settled contract launched in 2010, followed by a cash-settled contract in 2019, which references Fastmarkets MB’s cobalt price.
Cobalt is a critical component in several lithium-ion battery chemistries – such as NCM, NCA, and LCO – where it enhances energy density, thermal stability and battery lifespan. These properties are vital for EVs, which now account for 45% of global cobalt demand[1].
Despite the rise of alternative battery chemistries that do not use cobalt, cobalt-containing chemistries still made up 55% of total battery demand in 2023, and demand is forecast to more than double by 2030, driven by EVs and energy storage systems[1]. The International Energy Agency projects cobalt demand will reach 344,000 tonnes by 2030, up from 213,000 tonnes in 2023[2].
The Democratic Republic of Congo is the primary global source of cobalt, producing over 76% of global supply in 2024. Meanwhile, Indonesia is rapidly expanding its production capacity, driven by the phenomenal growth of its nickel industry, and it is expected to account for 16% of global supply by 2030 [1]. Around 90% of cobalt production is a by-product of nickel and copper mining, and new supply is intrinsically linked to developments in the markets for these two minerals.
With growing demand and supply challenges, the LME’s cobalt contracts offer a vital tool for managing price risk in this dynamic market.
Explore cobalt contracts at the LME
References
Copper: wiring the energy transition
Copper was one of the first metals traded on the London Metal Exchange in 1877 and today remains the world’s largest copper futures market by volume and open interest – representing around 65%of global open interest.
Copper’s unmatched conductivity makes it an essential element for EVs, batteries, wiring and expanding digital infrastructure. Copper demand for use in EVs alone is projected to quadruple over the next decade, with EVs requiring three times more copper than internal combustion engine vehicles – up to 80 kg per vehicle[1]. It is also critical for renewable energy systems – for solar panels, wind turbines, smart grids and energy storage.
As the energy transition accelerates, global copper demand is predicted to grow by 75% to 56 million tonnes by 2050[2]. Meeting this demand will require significant investment in mining, recycling and supply chain innovation. Copper scrap is likely to play an increasing role in boosting copper supply,rising from 20% today to nearly 40% of total consumption by 2050[3].With a longstanding and robust copper contract, the LME provides an essential tool for stakeholders managing their copper exposure across the energy and EV value chains, helping to support long-term planning.
As the world moves towards a more sustainable future, these renewable sources of energy will become critical in achieving climate goals – and copper will be key for this transition.
References
[1] BHP Insights: how copper will shape our future
[2] Securing copper supply: no China, no energy transition | Wood Mackenzie
[3] Copper recycling must accelerate to meet green energy demand, IEA says - Fastmarkets
Ferrous: strengthening the future of mobility
The LME offers a suite of cash-settled ferrous contracts designed to help steel producers, processors and consumers manage their price risk across the value chain.
Steel remains a foundational material in the automotive industry and is evolving to meet the demands of this rapidly changing industry. Advanced high-strength steels (AHSS) are now widely used in EV chassis, bodywork and battery enclosures – offering superior strength, crash protection and weight reduction. These modern types of steel are lighter and thinner than traditional grades, helping to offset battery weight and increase vehicle range.
Electrical steel, with its magnetic properties, is another essential element for EV motors and transformers. As EV adoption accelerates, demand for electrical steel is surging, with global supply expected to tighten due to limited production capacity [1].
Steel is also critical beyond vehicle use – it is used in charging infrastructure, energy storage systems and renewable energy installations. Its durability, recyclability and cost-effectiveness make it a key material in the transition to low-emission transport and energy systems.
Despite competition from alternative materials, steel remains one of the most environmentally effective choice across a vehicle’s lifecycle, offering lower embodied emissions and full recyclability [2].
Explore the LME’s ferrous contracts
References
[1] Powering the energy transition: Supply shortage of electrical steel
Lead: reliable power for the transition
The LME has been the global home of lead trading since 1920, offering a trusted platform for managing price risk across the lead value chain.
While lithium-ion batteries dominate the EV market, lead-acid batteries remain essential, especially for powering 12V systems like lighting, climate control and onboard electronics in EVs [1]. Their affordability, reliability and recyclability make them a practical solution for secondary power needs. Lead-acid batteries are the most recycled consumer product globally with recycling rates close to 99% in the US. [2]
Lead is also gaining traction in renewable energy storage, particularly in developing economies where infrastructure compatibility and recycling potential are key advantages. With battery manufacturing expected to account for 86% of US lead demand in 2025 (a figure widely seen as a proxy for global demand), lead-acid technology continues to play a vital role in the energy transition.
The global lead market is forecast to grow from US $29.9 billion in 2025 to US $45.2 billion by 2035, driven by rising investments in EV infrastructure and energy storage [3]. Over 85% of refined lead supply now comes from recycled sources, aligning with sustainability goals and circular economy principles.
With robust contracts and deep market expertise, the LME supports stakeholders navigating the evolving role of lead in clean mobility and energy systems.
References
[1] Lead Batteries Enable an Energy-Efficient, Decarbonised Transport (PDF)
[2] New Study Confirms US’ Most Recycled Consumer Product – Lead Batteries
[3] Lead Market Size & Forecast 2025-2035 – Future Market Insights
Lithium: powering the battery revolution
Lithium is at the heart of the energy transition, with demand surging in recent years due to its vital role in both EVs and energy storage systems. The LME’s cash-settled lithium hydroxide futures contract, launched in 2021, offers stakeholders across the lithium supply chain a route to manage their price risk.
EVs now account for nearly 90% of global lithium demand, up from 64% in 2020[1]. The average EV battery requires significantly more lithium than earlier models, and as battery capacity grows, so does the need for reliable pricing and risk management tools. By 2030, lithium demand is expected to reach 3.7 million tonnes of lithium carbonate equivalent (LCE) – more than double 2025 levels[1].
Lithium hydroxide is especially important for high-performance battery chemistries, while lithium carbonate dominates in lithium-ion phosphate (LFP) batteries, which are gaining ground in China and for energy storage applications[2]. Batteries are projected to account for 94% of total lithium demand by 2030[1].
With supply concentrated in a few regions and market volatility increasing, the LME’s lithium contract offers transparency and flexibility for producers, manufacturers and end users navigating this fast-evolving landscape.
References
Nickel: driving performance in the energy transition
Nickel has been traded on the LME since 1979 and remains the global reference for nickel pricing. This metal’s unique properties – corrosion resistance, high-temperature tolerance and energy density – make it indispensable for stainless steel, and increasingly for battery technologies.
Nickel is a key component in lithium-ion battery chemistries such as NMC (Nickel Manganese Cobalt) and NCA (Nickel Cobalt Aluminium), which are favoured for their high energy density and extended range[1]. These chemistries power the majority of EVs, with nickel-rich batteries accounting for over half of the EV battery market in 2023[2].
Demand for nickel in EV batteries has surged – growing over 200% between 2019 and 2023, and is projected to reach up to 1.09 million tonnes by 2030, depending on battery technology trends[3][2]. Nickel’s role is also expanding in energy storage systems, supporting the broader shift to renewables. With its established nickel contract, the LME provides an essential tool for producers, manufacturers and investors to manage price risk and navigate the evolving battery materials landscape.
References
[1] The role of nickel in EV battery manufacturing
Tin: the hidden enabler of electrification
Traded on the LME since 1877, the LME Tin contract supports producers, manufacturers, and consumers in managing price risk across a rapidly evolving market. Tin is a foundational metal in electronics and a growing force in the energy transition.
Tin’s unique properties – conductivity, ductility and a low melting point – make it irreplaceable in electronics. As miniaturisation and smart technologies advance, tin’s role will only grow.
Tin is essential for soldering electronic components, making it critical to electric vehicles (EVs), renewable energy systems and energy storage infrastructure. As EVs become more advanced, tin is increasingly used in battery management systems, control electronics, and potentially in future battery chemistries such as lithium-ion and zinc-ion[1].
According to the International Tin Association (ITA), global tin demand is projected to grow from 400 kilotonnes in 2025 to over 500 kilotonnes by 2030, driven by electrification and digitalisation[2]. The ITA forecasts a 13,000-tonne supply deficit by 2030 without new mining investment[3], highlighting the urgency of securing sustainable supply chains.
With robust contracts and deep market expertise, the LME empowers stakeholders to navigate tin’s expanding role in clean energy and mobility.
References
[1] Tin technologies: Discover how tin is making the future - International Tin Association
[2] TIN2030 - ITA launches a Vision for Tin - International Tin Association
[3] Tin falls back to earth but supply problems haven't gone away | Reuters
Zinc: A versatile metal for clean energy and storage
Zinc has been traded on the LME for over a century, with our contract offering a trusted reference for price risk management across many industries.
Widely used in galvanising steel, zinc plays a vital role in automotive manufacturing – protecting bodywork, welds and components from corrosion. Around 60% of global zinc consumption is for galvanisation [1].
Zinc is also found in die-cast parts and even tyres, making it a quiet but essential contributor to vehicle and infrastructure durability.
Zinc is not only essential for protecting infrastructure against corrosion - it is gaining traction as a important element in sustainable mobility and energy solutions. For example, . zinc-based batteries are fire-resistant, recyclable and cost-effective – making them ideal for stationary energy storage applications. Demand for zinc in batteries is projected to grow from the 600 tonnes seen in 2020 to over 77,000 tonnes by 2030, driven by the rise of renewables and grid-scale storage [2].
Zinc also supports clean energy infrastructure: a 10MW offshore wind turbine requires 4 tonnes of zinc, while a 100MW solar park uses 240 tonnes [2]. These applications highlight zinc’s growing role in enabling sustainable power generation and distribution, and this metal is poised to remain a key material in both mobility and energy systems.
References