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LME And Fastmarkets To Set Lithium Price Benchmark

Metal News - Published on Wed, 12 Jun 2019

Image Source: Medical News Today
The London Metal Exchange is partnering with Fastmarkets to develop the reference price for its planned lithium futures contract, which will help analysts and executives to get a full sense of the global market for the key ingredient in the making of the batteries that power electric vehicles. Unlike for copper or other metals used in the making of EVs, there currently is no traded price for lithium.

The exchange said that “In recent years there has been unprecedented price volatility in the lithium market, driven particularly by explosive electric vehicle battery demand.”

Unlike for copper or other metals used in the making of electric vehicles, there is no traded price for lithium.

The move, it added, comes after industry players, including producers, end-users and several leading automotive firms, urged the LME to develop effective lithium price-risk management tools.

Fastmarkets said in a separate statement that “This global strategic partnership will develop a definitive roadmap aimed at providing a pricing mechanism for lithium that can be utilized throughout the supply chain and will support the development of risk-management tools for the industry.”

Last year, the LME asked companies that assess prices of battery-grade lithium to submit proposals to supply a reference for cash-settled contracts it planned to launch in the fourth quarter of this year.

Source :

Posted By : Rabi Wangkhem on Wed, 12 Jun 2019
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