CME Plans Battery Metals Expansion With Second Cobalt Contract

CME Group Inc. is planning to expand its battery metals business with a second cobalt contract as the transition to electric vehicles boosts demand, according to people familiar with the matter.

The US’s largest derivatives exchange has been talking to traders, brokers and market makers about launching a futures contract for cobalt hydroxide, a widely traded intermediate form of the battery metal, said the people, who asked not to be identified because the discussions are private. The new contract would be in addition to CME’s existing futures contract for cobalt metal, which was launched in 2020.

The move would be ...