The CME Group, a leading international derivatives marketplace, has announced plans to expand its battery metals offerings with the launch of a Spodumene CIF China (Fastmarkets) Futures contract. This new product is set to debut on October 28, 2024, pending regulatory approval.
Jin Hennig, Global Head of Metals at CME Group, highlighted the significance of this launch, stating, “Our suite of cobalt and lithium products plays a crucial role in the rapidly evolving battery metals sector, with industry adoption accelerating. The introduction of Spodumene futures will enhance hedging capabilities, facilitating easier management of price discrepancies across products in the lithium value chain.”
Raju Daswani, Chief Executive Officer at Fastmarkets, expressed enthusiasm about the new contract, calling it a pivotal advancement for the lithium market. He remarked, “The launch of the spodumene futures contract with the CME Group provides the industry with a valuable tool to manage price risk related to spodumene pricing, conversion margins, and the lithium conversion spread itself. We believe this will significantly enhance liquidity across the entire battery raw materials futures complex.”
The CME Group continues to lead in managing battery metals risk, with open interest in Lithium Hydroxide futures surpassing 30,000 contracts for the first time this year, extending through 2026. Open interest in Cobalt Metal futures remains strong as well, extending through 2028, which provides critical price transparency for longer-term market participants.
The Spodumene CIF China (Fastmarkets) futures contract will be financially settled and will be listed under the rules of COMEX. Fastmarkets is recognized as a trusted cross-commodity price reporting agency (PRA) across various sectors, including agriculture, forest products, metals and mining, and emerging energy markets.
