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 battery materials and electric vehicle (EV) industries to identify and serve their evolving risk management requirements.
As set out in our LME Sustainability discussion paper we are working to expand on our existing contract offering. Our LME Sustainabilty: Electric Vehicles factsheet summarises our offering for this sector.
Some key battery metals such as nickel, lead, copper, cobalt and aluminium are already well established on the LME. We plan to launch new futures contracts to provide further hedging and trading opportunities for battery materials. Our cash-settled LME Cobalt (Fastmarkets MB) contract was launched in 2019, and we are working in partnership with Fastmarkets MB to develop a transparent and robust pricing solution for lithium.
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.
The London Metal Exchange (LME) is 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.
We’re working with Fastmarkets to deliver pricing solutions for the lithium community. Our new battery-grade lithium contract is designed to offer a risk-management tool which will serve the hedging and trading needs of this fast-paced, rapidly evolving sector. You can find out more about our new contract, launching in H1 2021, here.
In advance of the contract launch, we’re publishing the midpoint spot price for lithium hydroxide every Friday on our lithium pages.