Risk management solutions for EV metals and battery materials
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 and lead are already well established on the LME. We've introduced new futures contracts to provide further hedging and trading opportunities for battery materials. Our cash-settled LME Cobalt (Fastmarkets MB) contract launched in 2019, and we are working in partnership with Fastmarkets MB to develop a transparent and robust pricing solution for lithium which will launch on 19 July 2021.
Of course, battery materials are just one part of the EV revolution and 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.
You can explore the LME's offering for these innovative and fast-growing industries below.
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Our lithium initiative
We are working closely with lithium market participants from across the value chain, from producers through to end users and beyond, to develop effective lithium pricing and price-risk management tools. Unprecedented lithium price volatility, driven particularly by EV battery demand, has significantly increased market need for effective pricing and price risk-management tools.
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 the new contract here.
In advance of the contract launch, we’re publishing the midpoint spot price for lithium hydroxide every Friday on our lithium pages.