The launch of the cash-settled contracts is the latest in a suite of battery material futures contracts that have emerged in recent years amid increasing demand for hedging and risk management opportunities.
These latest contracts launched by ICE will provide a further avenue for automotive makers and battery producers to manage risk while their exposure to lithium, spodumene and cobalt increases in line with the ramp-up of new energy vehicle (NEV) production.
“Appetite for futures contracts for critical minerals has grown exponentially in recent years and this latest development provides an additional avenue for market participants to hedge their price risk or form a view on the direction of the market. We’re proud to partner with ICE in developing the market further,” Przemek Koralewski, Fastmarkets’ global head of market development, said.
ICE confirmed the launch via a notice to members and customers. The new contracts are due to launch on June 2, subject to regulatory approval.
Demand for risk management tools grows in battery supply chain
Demand for cobalt and lithium is growing. Total cobalt demand reached roughly 207,000 tonnes in 2024, according to Fastmarkets research. And over the next decade, Fastmarkets research expects forecast cobalt demand to grow at a compound annual growth rate (CAGR) of 9%, reaching 507,000 tonnes by 2035.
Lithium demand is also rising sharply. Total demand reached 945,000 tonnes in 2024, and is forecast to grow at a CAGR of 12%, reaching 3.9 million tonnes in 2035.
The rapid growth of the energy transition and battery raw material markets has increasingly facilitated a desire for exposure to associated futures markets to track, trade and hedge changing market fundamentals.
Price volatility has been a common theme across lithium and cobalt markets in recent years, following significant declines in prices from 2023.
As a result, adoption and usage of risk management tools has grown significantly in the market, including adoption among traders and financial players looking for exposure to these rapidly growing industries.
These prices join a suite of risk management tools listed by exchanges, such as the Chicago Mercantile Exchange (CME), Singapore Exchange (SGX) and London Metal Exchange (LME), all of which are underlined by Fastmarkets prices.
Lithium prices have fallen significantly since the all-time high of $80-86 per kg seen in much of November and December 2022, with the decline driven by oversupply and lower-than-expected demand growth for electric vehicles (EVs).
Fastmarkets price assessments
Fastmarkets assessed the lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices, cif China, Japan & Korea, at $8.50-9.50 per kg on Tuesday April 22.
Fastmarkets most recently assessed the lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea, also at $8.50-9.50 per kg on Tuesday.
Spodumene prices have seen similar volatility, with Fastmarkets’ daily assessment of the spodumene min 6% Li2O, spot price, cif China, reaching an all-time high of $8,000-8,575 per tonne during December 2022, falling to $780-805 per tonne as of Tuesday.
And cobalt metal prices hit highs of $40 per lb in May 2022 before reaching a low of $9.50 per lb in February 2025.
Fastmarkets’ price assessment for cobalt standard grade, in-whs Rotterdam, was $15.30-16.25 per lb on Tuesday. This is up from a 2025 low of $9.50-10.40 per lb on February 19, supported by the impact of the export suspension in the Democratic Republic of Congo.
The following four daily Fastmarkets prices will be used to underpin the new futures contracts launched by ICE:
MB-LI-0029 – Lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea, $/kg
MB-LI-0033 – Lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea, $/kg
MB-LI-0012 – Spodumene min 6% Li2O, spot price, cif China, $/tonne
MB-CO-0005 – Cobalt standard grade, in-whs Rotterdam, $/lb
Fastmarkets lithium and cobalt futures contracts enable you access to risk management solutions as you make strategic business decisions. Find out more here.
