Lithium Related Media Articles, page-27998

I have only scant knowledge of the lithium-cobalt futures due to start June2 2025

ICE-Fastmarkets Partnership

This article is dated April 24 2025 and an interesting read and I am a little wiser now


The Intercontinental Exchange (ICE) and Fastmarkets have formed a strategic partnership to launch new cash-settled lithium and cobalt futures contracts, scheduled to begin trading on June 2, 2025, subject to regulatory approval.

These contracts will be cash-settled against Fastmarkets' price assessments, covering lithium, spodumene, and cobalt markets. The partnership aims to provide market participants with effective tools to manage price risk in these increasingly volatile markets.

The contracts will be settled against four key Fastmarkets price assessments:

• MB-LI-0029: Lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea ($/kg)
• MB-LI-0033: Lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea ($/kg)
• MB-LI-0012: Spodumene min 6% Li2O, spot price, cif China ($/tonne)
• MB-CO-0005: Cobalt standard grade, in-whs Rotterdam ($/lb)

These assessments are widely respected in the industry for their accuracy and reliability, making them ideal benchmarks for cash settlement.

Multiple stakeholders across the battery supply chain stand to benefit from these financial instruments:

Automotive OEMs can manage long-term procurement costs, protecting themselves from price spikes that could erode profits on fixed-price vehicle sales.

Battery cell manufacturers benefit by hedging raw material input costs, enabling more accurate cost projections and stable margins.

Mining companies can secure future revenue streams, potentially using futures contracts to demonstrate stable cash flows when seeking project financing.

Trading houses provide crucial liquidity and market-making services, facilitating efficient price discovery and trade execution.

Financial institutions can develop and offer structured products based on these futures, providing investment opportunities and additional risk management tools.

https://discoveryalert.com.au/news/cash-settled-lithium-cobalt-futures-2025/