As set out in the LME Strategic Pathway in September 2017 we are in the process of delivering new risk-management tools for electric vehicle (EV) battery materials markets.
We are working with global market participants along the value chain to identify and serve the industry’s evolving risk management requirements. Some key battery metals such as nickel, copper, cobalt and aluminium are already well established on the LME. Our aim is to launch new futures contracts covering one, some or all of these EV materials: lithium, cobalt, nickel sulphate, graphite and manganese.
With over 140 years at the heart of global metals markets, the LME is uniquely placed to provide effective risk-management solutions for the whole EV value chain, from miners through to the end users. As an independent infrastructure provider servicing the global industry the LME is able to help identify, shape and consolidate the divergent and often competing views of the EV market.
We have also assembled an official EV Metals Advisory Group with key industry participants to help shape the future of the market, and we invite interested parties to get in touch.
Over the past 18 months the London Metal Exchange (LME) has been working closely with the global lithium industry to discuss their needs for transparent and robust pricing solutions. Unprecedented lithium price volatility, driven particularly by EV battery demand, has significantly increased market need for effective pricing and price risk-management tools.
We have been approached by market participants from across the value chain from producers through to end users to develop effective lithium price-risk management tools.
As always, the LME is working closely with industry to design effective products which best meet market requirements. In 2018 we tendered a request for proposal with leading price reporting agencies (PRAs) with the objective of selecting the lithium market’s preferred price assessment provider.
The PRAs presented to our EV Working Group in October 2018, and after thorough and extensive consultation with the market, we have selected Fastmarkets as our lithium pricing partner.
Fastmarkets has a substantial pricing presence in the EV space, with prices which are already used in physical lithium supply deals. They have extensive experience in developing globally-accepted and IOSCO-compliant reference prices and indices.
Over the coming months the LME and Fastmarkets will continue to work together on a joint market engagement programme to reinforce use of Fastmarkets’ prices, and when the market is ready, to launch LME lithium futures contracts to help the lithium community manage price risk.
Please visit our lithium prices page.
We will update this page regularly with further details of our events and education programme, so please check back for more information.
You can find out more about our lithium plans from these upcoming events and webinars:
LME Metals Seminar 2019
The metals seminar will include a panel discussion on 'The EV revolution: what is the reality for metals markets?'
Monday 28 October 2019
LME Focus Day 2019 - Battery Materials Session
Will Adams of Fastmarkets will give the analyst's view of the market outlook for battery materials, followed by a panel featuring industry experts discussing the evolution of the lithium market
Thursday 31 October 2019