London Metal Exchange aims at booming electric car market

According to the head of the London Metal Exchange, the London Metal Exchange will start offering metal contracts for batteries within 18 months to seize the huge opportunities offered by the rise of electric vehicles.

Including lithium, cobalt, nickel, graphite and manganese metals demand, as the growth of the electric car has increased dramatically, especially in China, as the government actively promote the development in response to the serious pollution problems, China has become the world's largest electric car market.

"Since, becoming increasingly prevalent in electric vehicles, battery industry is now an important part of trading of metal contract," chief executive of the LME Matthew Chamberlain LME Asian week held in Hong Kong on Thursday said on the BBS.

Will launch new futures contracts, he said, could include lithium, graphite and manganese, it also will explore has been trading of nickel, copper, cobalt and aluminium.

Chamberlain said, in addition to the battery plate, other new products include gold and silver options.

"The LME will launch a new platform before the end of this year, so that faster and more easily launch new products, new product range should be launched in the next 18 months."He said.

The London metal exchange is the world's biggest metals exchange, by the Hong Kong stock market operator Hong Kong exchanges and clearing (a bit).There are about 900 people attended the annual meeting, including representatives of the electric car manufacturers.

Brokerage industry officials said that in view of the growth of the electric car industry, the LME's new contract project in good time.

"Electric vehicle battery manufacturers need to trade these metals, so hope that through the futures or options contracts to hedge their risk," the Hong Kong securities industry association, chairman of the Hong Kong securities association chairman Gary Zhang said.

"With electric cars in China and other parts of the world become more and more popular, the LME for these manufacturers for risk management is the right time to launch related products, if the end user to be able to create a good liquidity pools, other investors would also like to trade," Zhang said.

The London metal exchange overall volume rose 3% in the first quarter, partly because since October transaction cost discount. Chamberlain said, due to the increasing concern about a trade war with China, April aluminum trade doubled, although this may be a one-time occurrence, but other products sales will continue to grow for a discount.

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