The Guangzhou Futures Exchange (GFEX) plans to introduce lithium hydroxide futures contracts by the fourth quarter of 2026. This initiative aims to provide a dedicated hedging tool for the battery industry, marking the first time a Chinese exchange offers a contract specifically for this material.
The new instrument will complement the existing lithium carbonate futures, which GFEX launched in July 2023. While carbonate is primarily used for lithium iron phosphate batteries, lithium hydroxide is essential for nickel-rich NMC cathodes used in high-performance electric vehicles.
Several major producers are preparing for the launch. Tianqi Lithium applied for delivery qualifications in December 2025, followed by Yahua Group in June 2026, with Ganfeng Lithium also reportedly readying for the transition. GFEX is finalizing the process with the China Nonferrous Metals Industry Association.
Currently, hydroxide prices are determined through bilateral negotiations based on assessments from agencies like Fastmarkets and S&P Global Platts. Additionally, GFEX is expanding its lithium carbonate market, with physical delivery and overseas participation scheduled to begin on July 3, 2026.
