Derivatives marketplace CME Group announced Monday that it will expand its battery metals suite and introduce a Spodumene CIF China (Fastmarkets) Futures contract on October 28, 2024.
CME Group to Launch Spodumene Futures Contract
This expansion of its battery metals suite aims to provide the market with enhanced hedging capabilities and better price risk management tools.
“The spodumene futures contract launch with the CME Group marks a significant step forward for the lithium market,” commented Raju Daswani, Chief Executive Officer at Fastmarkets. “With this contract, the industry gains a tool to manage price risk associated with the spodumene price, conversion margins, as well as take a view on the lithium conversion spread itself.”
Jin Hennig, Global Head of Metals at CME Group, said the company’s suite of cobalt and lithium products serves an important role in the rapidly evolving battery metals space, with industry adoption accelerating.
“With this launch of Spodumene futures, we will expand hedging capabilities, making it easier for the market to manage the price differences across products in the lithium value chain,” stated Hennig.
Spodumene is a key mineral used in the production of lithium-ion batteries, which are essential for electric vehicles and renewable energy storage.
The new futures contract will be financially settled and listed on COMEX, with Fastmarkets providing the underlying price assessment.
CME Group noted that open interest in Lithium Hydroxide futures surpassed 30,000 contracts for the first time this year and now extends through 2026. Meanwhile, open interest in Cobalt Metal futures is also said to remain robust and extend through 2028.
