Lithium futures trading volumes reached record Q2

Lithium futures trading volumes reached record Q2 levels, as investment funds target clean energy-linked commodities. The backwardation in near-month contracts signals short-term scarcity, aligning with shipping delays from South America. Last week, Reuters reported that administration officials were in discussions with Lithium Americas about an equity stake as they renegotiated the terms of a $2.26 billion government loan for the Nevada-based mining project. Futures activity also increased on the Chicago Mercantile Exchange’s (CME) cash-settled lithium hydroxide and lithium carbonate futures contracts amid the recent price rebound. Lithium futures hit a new monthly high at $71,200/ton, boosted by sustained demand from Chinese battery plants. The MACD indicator remains positive, implying further upside potential. Supply bottlenecks in Chile continue to support bullish sentiment.