NEWS
Exchange & Stocks  

London Metal Exchange and Fastmarkets to set lithium price benchmark

The London Metal Exchange (LME) 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 (EVs).

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

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

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.

“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,” Fastmarkets said in a separate statement.

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.

Today, however, the exchange only said it would continue “to gauge appropriate timing” for a launch.

Currently, producers negotiate contracts with buyers, but the terms of the deals are not made public.

The LME, the world’s oldest and largest market for industrial metals, said it selected Fastmarkets because their prices were used widely across the industry.

The agency already provides the global benchmark for the cobalt market — another key battery raw material.

News No: 4794
Date: 2019/06/10 - 21:50
News Source: MINING.COM

London  Metal Exchange  LME  EV  industrial 

Comments:

Leave a Comment:

   
   
   
 

Rejection of Barrick bid is 'no brainer,' top Acacia investor says

Fidelity International, one of the largest shareholders in Acacia Mining, said on Friday Barrick Gold's low bid to buy the Acacia shares it does not already own showed a lack of judgment and it was a "no brainer" to reject it.
 

CHART: Worst May for US stocks in 9 years lights fire under gold price

Gold jumped out of the gate on Friday, rising more than 1% in heavy volumes as investors seek a safe haven amid a widening trade war unleashed by US President Donald Trump.
 

Iran Ready to Provide Energy Transit Route for Tajikistan

An Iranian minister voiced the country’s readiness to offer Tajikistan an energy transit route for the economic development of the region.
 

IMO 2020, EVs, and steel — a perfect storm in the needle coke sector?

The new International Maritime Organization (IMO) 2020 regulations are expected to have some tangible effect on the steel industry. Primarily, increasing freight rates for raw materials such as iron ore and coal as ship owners and operators pass on higher bunker costs.
 

EV to make up 10-20% of world's vehicles by 2030 — IEA

A recent spike in electric vehicle sales in B.C. is part of a global trend that saw 5.1 million EVs sold last year, according to the International Energy Agency (IEA).
 

Lab-grown diamonds to get sustainability standard certification

Organizations behind lab-grown diamonds continue to push to conquer the market.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners