A new Singapore-based commodities exchange, Abaxx, has started trading in liquefied natural gas (LNG) and carbon futures on Friday. However, the exchange has delayed the launch of its contract for nickel sulphate, a form of nickel used in electric vehicle batteries.
The exchange, which is owned by Canadian-listed Abaxx Technologies Inc (ABXX.NLB), was initially planning to launch the world’s first futures contract for nickel sulphate along with the LNG and carbon contracts. But an Abaxx official, who declined to be named, confirmed that the nickel sulphate contract has been delayed due to the need to finalize branding and specifications.
The official said the nickel sulphate contract is expected to be launched in a matter of weeks. Abaxx had also aimed to eventually add contracts for other metals used in electric vehicle batteries, such as lithium, as per information shared with Reuters last October.
The new Abaxx nickel contract will be physically settled, but it does not have a network of warehouses for delivery like the dominant metals market, the London Metal Exchange (LME). Instead, Abaxx futures contracts facilitate direct delivery from seller to buyer.
The existing nickel futures contracts on the LME and the Shanghai Futures Exchange both trade in Class 1 refined nickel.
The launch of the LNG and carbon futures contracts marks the opening of the new Abaxx exchange, which received approval from authorities in Singapore in December. The exchange aims to provide trading in a variety of commodities, with a focus on products related to the energy transition and electric vehicle battery materials.