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Commodity exchange Abaxx will launch a lithium carbonate contract March 7

Abaxx, a Singapore-based commodities exchange, plans to launch on 7 March a contract for lithium carbonate that can be delivered physically at three different locations. The company announced this on Thursday.

Abaxx Technologies Inc., a Canadian-listed company, began trading the nickel sulfate contract, its first battery product, on January 10.

A statement stated that the contract will be delivered in Singapore, Rotterdam, and Baltimore. The price is in U.S. Dollars and represents 1 metric ton lithium carbonate.

There are no physical deliverable futures contracts for lithium carbonate outside China.

Since its launch in July 20,23, the Guangzhou Futures Exchange in China has seen a strong increase in its Lithium Carbonate Futures. However, foreigners are not allowed to participate.

The U.S. CME Group has contracts with cash settlements in both lithium carbonate and hydroxide, the first of which is a very popular contract. The London Metal Exchange also offers cash-settled contracts for lithium hydroxide. However, its contract failed to trade in this year.

Both lithium carbonate and lithium hydroxide are processed forms of this mineral that is used in the batteries of electric vehicles. However, hydroxide cannot be physically delivered because it can't be stored.

Abaxx had previously stated that it worked with a major manufacturer of lithium carbonate in order to support the contract. However, the statement didn't specify which brands or producers would be approved for this contract.

The nickel contract on the exchange is the first ever futures contract in nickel sulphate. Abaxx has also contracts for LNG and carbon. (Reporting and editing by Christina Fincher, Eric Onstad)

(source: Reuters)