LONDON (Reuters) – The Singapore-based Abaxx commodities exchange plans to launch a lithium carbonate contract on March 7 that will be physically deliverable at three locations, the company said on Thursday.
The exchange, owned by Canada-listed Abaxx Technologies Inc, started trading its nickel sulphate contract on January 10, the first of its battery products.
The contract, priced in U.S. dollars and representing 1 metric ton of lithium carbonate, will be deliverable in Singapore, Rotterdam and Baltimore, a statement said.
Outside China, there are currently no lithium carbonate futures contracts that are physically deliverable.
China’s Guangzhou Futures Exchange has seen strong growth in its lithium carbonate futures since their launch in July 2023, but there are hurdles for foreigners to participate.
The U.S. CME Group offers cash-settled contracts in both lithium hydroxide and carbonate, with the former seeing strong volumes. The London Metal Exchange offers cash-settled lithium hydroxide, but its contract has failed to trade this year.
Lithium carbonate and hydroxide are both processed forms of the mineral used in electric vehicle batteries, but hydroxide is not suitable for a physically delivered contract because it cannot be stored for any length of time.
Abaxx previously told Reuters it was working with a major producer of lithium carbonate to support the contract, but the statement did not name which producers or brands would be approved for the contract.
The exchange’s nickel contract is the world’s first futures in nickel sulphate. Abaxx also has contracts in LNG and carbon.
(Reporting by Eric Onstad; Editing by Christina Fincher)
