CHICAGO, April 8, 2021 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced that it will launch Lithium Hydroxide CIF CJK
(Fastmarkets) futures on May 3,
pending all relevant regulatory reviews. Lithium futures are
designed to help market participants manage their battery metals
risk, and they represent the latest tool the exchange has launched
to help establish a forward curve for a key material in the green
economy, joining the recent launch of CME Group's Cobalt Metal
(Fastmarkets) futures.
"Demand for key battery metals like Lithium and Cobalt continues
to accelerate as economies invest in lower carbon alternatives for
the transportation sector," said Young-Jin
Chang, Managing Director and Global Head of Metals at CME
Group. "CME Group is the destination for managing global metals
risk, and the new Lithium futures will provide our customers with
another tool for managing the price risks associated with the
manufacturing of electric vehicles."
"We are pleased that CME Group plans to expand their battery
metals product offerings with the introduction of Lithium futures,"
said Kevin Smith, Managing Director
of Energy Metals at Traxys. "Demand for Lithium continues to grow
alongside the increase in adoption of electric vehicles and we look
forward to the enhanced price discovery and risk management
capabilities this new contract will bring to the marketplace."
The International Energy Agency (IEA) estimated that in 2020,
global sales of electric vehicles grew 40% from the 2.1 million
cars sold in 2019. Overall demand for electric vehicles is expected
to continue to grow, with many car manufacturing companies pledging
to introduce new electric vehicle models over the next decade to
help meet carbon-neutral targets.
Lithium futures will be financially-settled based on the Lithium
Hydroxide assessment published by Fastmarkets, which reflects the
cost, insurance and freight (CIF) spot price in China, Japan
and South Korea, where the
majority of battery manufacturing capacity is concentrated
today.
"The battery raw materials metals market is rapidly evolving as
electric vehicle demand continues to grow, creating new hedging
needs for market participants," said Fastmarkets CEO Raju Daswani. "Fastmarkets has a 100-year track
record in commodity data and information services and a strong
reputation for creating transparent and compliant pricing
mechanisms across these markets. We are excited to work with CME
Group to build upon the successful launch of Cobalt futures and
help create comprehensive risk management solutions that support
the entire battery metals supply chain."
Lithium futures will be listed by and subject to the rules of
COMEX. For contracts specifications, or for more information on CME
Group's battery metals products, please visit:
www.cmegroup.com/lithium.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's leading
central counterparty clearing providers, CME Clearing. With a range
of pre- and post-trade products and services underpinning the
entire lifecycle of a trade, CME Group also offers optimization and
reconciliation services through TriOptima, and trade processing
services through Traiana.
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Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board
of Trade of the City of Chicago,
Inc. NYMEX, New York Mercantile Exchange and ClearPort are
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trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima,
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CME-G
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SOURCE CME Group