The Guangzhou Futures Exchange is preparing to launch lithium hydroxide futures contracts as early as Q4 2026, which would make it the first Chinese exchange to offer a hydroxide-specific contract, complementing the lithium carbonate futures it launched in July 2023. Those carbonate contracts have become one of the most liquid lithium instruments in the world, with physical delivery and overseas participation set to commence from July 3, 2026. Major producers including Tianqi Lithium, Yahua Group, and Ganfeng Lithium are already positioning themselves for the new contract. Lithium carbonate prices swung from record highs above 80,000 dollars per tonne in late 2022 to below 15,000 dollars per tonne by mid-2024, highlighting the need for dedicated hedging instruments in the EV supply chain.
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