TruckElectric
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Overview
The rapid growth of electric vehicles and large-scale battery storage applications for electronic devices is increasing Lithium demand – and price risk. Lithium futures offer price transparency and efficient risk management and will be financially settled each business day of the contract month, based on monthly average of assessments published by Fastmarkets, a leading commodities benchmark data provider.
Explore the product in depth
Review preliminary contract specifications
SOURCE: CME Group
CME Seeks to Tap Electric-Car Demand With Lithium Futures
Contracts tied to the battery metal could make pricing more transparent
Commodities exchange operator CME Group Inc. plans to launch a futures contract for lithium, seeking to capitalize on growing demand for a metal that helps to power electric vehicles.
The contract will be for lithium hydroxide delivered to China, South Korea and Japan, where most batteries globally are produced, CME said Thursday. If the futures contract is approved by regulators, it will begin trading on May 3.
Allowing lithium to trade freely on an exchange could help shed more light on historically opaque prices for the metal, a key ingredient in rechargeable batteries for smartphones, laptops and electric vehicles. Market participants currently rely on assessments from commodities-data trackers such as Benchmark Mineral Intelligence, S&P Global Platts and Fastmarkets.
Lithium’s role in powering rechargeable batteries has made it a strategically important commodity as governments seek to limit carbon emissions. The U.S. is racing to catch up with China in mining and refining the metal to support its auto industry and tackle climate change.
SOURCE: WSJ
The rapid growth of electric vehicles and large-scale battery storage applications for electronic devices is increasing Lithium demand – and price risk. Lithium futures offer price transparency and efficient risk management and will be financially settled each business day of the contract month, based on monthly average of assessments published by Fastmarkets, a leading commodities benchmark data provider.
Explore the product in depth
Review preliminary contract specifications
CONTRACT TITLE | Lithium Hydroxide CIF CJK (Fastmarkets) Futures |
CME GLOBEX/CME CLEARPORT CODE | LTH |
RULEBOOK CHAPTER | 646 |
SETTLEMENT TYPE | Financial |
CONTRACT SIZE | 1,000 kg (kilograms) |
LISTING SCHEDULE | Monthly contracts listed for twelve (12) consecutive months. Add a new contract month after the nearby expiry. |
PRICING QUOTATION | U.S. dollars and cents per kilogram |
FIRST LISTED MONTH | May 2021 |
MINIMUM PRICE FLUCTUATION | $0.01 per kg |
VALUE PER TICK | $10.00 |
BLOCK TRADE MINIMUM THRESHOLD | 2 contracts – subject to a minimum 15-minute reporting window |
TERMINATION OF TRADING | Trading terminates on the last Thursday of the contract month. If this is not a U.S. business day, trading terminates on the prior U.S. business day. |
CME GLOBEX MATCHING ALGORITHM | First in First Out (FIFO) |
TRADING AND CLEARING HOURS | CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time/ET (5:00 p.m. - 4:00 p.m. Central Time/CT) with a 60-minute break each day beginning at 5:00 p.m. ET (4:00 p.m. CT) CME Globex: PreOpen: Sunday 5:00 p.m. – 6:00 p.m. ET (4:00 p.m. – 5:00 p.m. CT). Monday – Friday 5:45 p.m. – 6:00 p.m. ET (4:45 p.m. – 5:00 p.m. CT) CME ClearPort: Sunday – Friday 6:00 p.m. – 5:00 p.m. ET (5:00 p.m. – 4:00 p.m. CT) with a 60-minute break each day beginning at 5:00 p.m. ET (4:00 p.m. CT) |
SOURCE: CME Group
CME Seeks to Tap Electric-Car Demand With Lithium Futures
Contracts tied to the battery metal could make pricing more transparent
Commodities exchange operator CME Group Inc. plans to launch a futures contract for lithium, seeking to capitalize on growing demand for a metal that helps to power electric vehicles.
The contract will be for lithium hydroxide delivered to China, South Korea and Japan, where most batteries globally are produced, CME said Thursday. If the futures contract is approved by regulators, it will begin trading on May 3.
Allowing lithium to trade freely on an exchange could help shed more light on historically opaque prices for the metal, a key ingredient in rechargeable batteries for smartphones, laptops and electric vehicles. Market participants currently rely on assessments from commodities-data trackers such as Benchmark Mineral Intelligence, S&P Global Platts and Fastmarkets.
Lithium’s role in powering rechargeable batteries has made it a strategically important commodity as governments seek to limit carbon emissions. The U.S. is racing to catch up with China in mining and refining the metal to support its auto industry and tackle climate change.
SOURCE: WSJ
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