LME decides to choose lithium hydroxide as the target of lithium futures contract to be launched next year.

SMM10 March 23: it is said that LME decided to choose lithium hydroxide as the subject of the lithium futures contract and launch it in the first half of next year.

Lithium carbonate or lithium hydroxide can be used in rechargeable batteries for electric vehicles. Lithium hydroxide has an advantage because it provides larger battery capacity and longer service life.

"Lithium supports the growing electric vehicle market, and most market participants will be able to hedge using hydroxide contracts," Antonio Masiero, product development manager of the London Metal Exchange, said at the London Metal Exchange (LME) event on Thursday.

Masiero says the correlation between lithium carbonate and lithium hydroxide is more than 90%.