The Abaxx Commodity Exchange, headquartered in Singapore, announced on Thursday that it plans to launch Lithium Carbonate Futures Contracts on March 7, with physical delivery taking place in Singapore, Rotterdam, and Baltimore. Priced in US dollars, each contract represents 1 metric ton of lithium carbonate, offering international lithium carbonate suppliers enhanced market opportunities.

The exchange is owned by Abaxx Technologies Inc., a publicly listed company in Canada, which began trading Nickel Sulfate Futures Contracts on January 10 — the first battery-related product offered. This move could provide better pricing options for lithium battery manufacturers and battery material buyers.

Currently, there are no physical delivery lithium carbonate futures contracts available outside China. The lithium carbonate futures contract launched by the Guangzhou Futures Exchange in China in July 2023 has gained strong momentum, but foreign participation remains challenging, which continues to pose a hurdle for lithium carbonate wholesalers and lithium hydroxide suppliers.

The Chicago Mercantile Exchange (CME Group) offers cash-settled contracts for both lithium hydroxide and lithium carbonate, with lithium hydroxide contracts seeing a larger trading volume. Lithium hydroxide is highly favored by battery manufacturers and new energy industry clients requiring high-purity materials. The London Metal Exchange (LME) offers cash-settled lithium hydroxide contracts, but no trades have occurred in 2023.