A price assessment agency focused on battery materials has partnered with a major global exchange operator to launch futures contracts for lithium and cobalt in June. The exchange will utilize the price assessments from the agency for cash settlement of these derivative contracts, marking a significant step for the agency in the exchange-traded derivatives market, which is currently dominated by other information providers.

The agreement between the price agency and the exchange covers several crucial materials used in lithium-ion batteries for electric vehicles, including lithium carbonate, lithium hydroxide, spodumene concentrate (containing lithium), and cobalt hydroxide. These materials are vital for the ongoing global shift towards clean energy.

The new contracts will be listed on the exchange’s European futures platform in London. The price agency highlighted that its assessments for lithium and other critical minerals are already used to settle billions of dollars in contracts and have received approval from a key international securities commission, indicating adherence to best practices. The exchange had previously announced its intention to launch these battery material derivatives, noting the advantage of offering these contracts to participants already active in their broader energy markets.