Commodity exchange Abaxx to launch lithium carbonate contract on March 7

Abaxx Technologies

13/02/2025 13:32

LONDON, Feb 13 (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
 ABXX.NLB , 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  CME.O  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)
 ((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO;
 Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))