SGX derivatives contracts: Risk management in new energy metals

Read more about the SGX launch of four battery metal derivatives contracts, cash-settled against Fastmarkets’ lithium and cobalt price assessments

On September 26, SGX will launch four battery metal derivatives contracts, cash-settled against Fastmarkets’ lithium and cobalt price assessments. To read more about risk management in new energy metals and the details of the contracts, click through the slides below.

Key takeaways:

  • Lithium and cobalt market sizes will grow rapidly as the electric vehicle battery industry takes off
  • Lithium supply will continue to struggle to keep up with demand
  • Increasing volatility is intensifying the requirement to hedge price risks
  • Variations in prices of key raw materials have significant impacts on cathode and battery costs
  • The complexity of the battery supply chain exposes numerous actors to risk
  • The methodology and expertise from Fastmarkets have defined our status as a market-leading price reporting agency for more than 130 years

Why are risk management tools important?

  • Hedge exposure to future price volatility
  • Protect profit margins
  • Increase certainty of cost budgeting and cash flows
  • Improve procurement, planning and inventory requirements
  • Secure financing for new projects or developments
  • Mitigate counterparty risk

For more information, contact:

Peter Hannah
Senior price development manager
Email: phannah@fastmarkets.com

What to read next
An expanded suite of products critical for a new generation of energy markets
Emilie Bodoin, founder and CEO of Pure Lithium, explains how lithium metal batteries differ from other battery chemistries in the energy transition, as well as the challenges to producing a commercially-viable and truly solid-state battery for use in electric vehicles
In this video interview with Daniel Jimenez from iLiMarkets, he shares his views on the greatest social and economic costs of lithium mining and explains the key geopolitical drivers in the market
Hear from Elewout Depicker, vice president commercial and corporate development for Li-Cycle, as he explains the most significant barriers to battery recycling as well as what the industry can do to advance these processes
Key talking points at Fastmarkets’ European Battery Raw Materials Conference 2022 in Barcelona, Spain on September 20-21
How to use seasonal and technical analysis within your risk management tool kit
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed