Singapore Exchange Launches Four New Battery Metal Futures

SGX (Singapore Exchange) launched four new battery metals contracts on 26 September.

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SGX announced plans to launch the new contracts in January, saying the "global awakening" towards decarbonisation and ESG initiatives has spurred the demand for electric vehicles, which has resulted in a corresponding rise in demand for new energy metals used in the production of EV batteries.

The four contracts are in battery-grade lithium carbonate; lithium hydroxide; cobalt metal; and cobalt hydroxide – which are used in the production of batteries used in electric vehicles.

The new contracts have seen little trading activity since the launch. Other markets which offer battery metal futures such as the LME (London Metal Exchange) and CME Group have seen similarly low trading liquidity compared to established commodities contracts.

SGX partnered with Fastmarkets, a trusted cross-commodity price reporting agency (PRA) in the agriculture, forest products, metals and mining, and energy transition, to be its price-reporting agency for the new derivative contracts.

Source: Regulation Asia