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CME Group (NASDAQ:CME) will roll out cobalt hydroxide futures contracts on October 23 to “offer market participants in the global battery supply chain more hedging granularity,” Jin Chang Hennig, managing director and global head of Metals at the derivatives exchange, said Monday.
This will mark the fourth battery metals futures contract CME (CME) has launched in response to evolving hedging needs within the fast-growing electric vehicle space.
The new futures contracts will be listed by and subject to the rules of COMEX under the product name Cobalt Hydroxide CIF China (Fastmarkets) futures. It will be financially-settled based on the Fastmarkets’ cobalt hydroxide price assessment.
“As demand continues to grow, it has become more important to manage the price risk between global, standard-grade cobalt metal and the local hydroxide price delivered into China, where hydroxide is refined into battery-grade material,” Hennig added.
