Intercontinental Exchange (NYSE: ICE) and Benchmark Mineral Intelligence (BMI) today – Monday 24 November – announce the launch of new lithium and cobalt futures contracts settled against Benchmark’s trade‑verified price assessments.
Their listing on ICE Futures Europe represents another milestone in the maturation of the battery metals market – connecting dependable physical market benchmarks to globally regulated trading venues.
Closing the basis risk gap
For many commercial participants in the battery metal supply chain, aligning physical market pricing with financial market instruments has been challenging.
Variations between different reference prices have created measurable basis risk and made it difficult for some treasuries to achieve hedge accounting treatment under IFRS guidelines.
The Benchmark (BMI) futures contracts on ICE, settled against Benchmark’s IOSCO‑assured, transaction‑based assessments, now offer a route to closer alignment between physical exposures and financial hedges.
This development improves pricing transparency and provides corporate and financial users with the tools to manage lithium and cobalt price risk more effectively across both physical and derivative markets.
“These contracts expand, rather than compete with, existing lithium and cobalt derivatives by addressing an unmet hedging need for the majority of the ex‑China supply chain,” shared Daniel Fletcher-Manuel, Benchmark’s Director of Indexing & Derivatives.
“They provide a transparent, regulated pathway for manufacturers, producers, and investors to manage battery metal price exposure across the same indices that underpin billions of dollars in offtake and supply agreements” he added.
Benchmark Chief Operating Officer, Caspar Rawles, commented:
“For the first time, participants across the supply chain, from producers to consumers and financial institutions, can trade using Benchmark’s market leading, trusted price assessments, backed by years of independent data, analysis, and market specific methodologies.This is a defining step for the global energy transition.
“By bringing transparent and independently verified transaction prices for lithium and cobalt to regulated futures markets, we’re helping to build confidence, manage risk, and support the sustainable growth of supply chains powering these new energy supply chains.”
About the partnership
Intercontinental Exchange (ICE) operates some of the world’s leading exchanges and clearing houses, including ICE Futures Europe, ICE Futures U.S., and the New York Stock Exchange.
Benchmark Mineral Intelligence is the independent data provider for the lithium‑ion battery and energy transition supply chain, publishing daily trade‑verified, IOSCO‑assured price assessments used widely in global physical and financial contracts.
The BMI futures contract suite includes:
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Lithium Carbonate CIF Asia (BMI) Future
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Lithium Hydroxide CIF Asia (BMI) Future
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Spodumene Concentrate FOB Australia (BMI) Future
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Cobalt Hydroxide CIF Asia (BMI) Future
These futures contracts connect transparent price discovery with regulated market infrastructure, enabling effective hedging for the world’s battery metal supply chain.
Learn more about BMI lithium futures or BMI cobalt futures and start trading today.