BUSINESS

China Opens Lithium Futures Market to Foreign Traders

Published: Jul. 5, 2026 3:10 a.m. GMT+8

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The Guangzhou Futures Exchange opened its lithium carbonate futures and options to overseas traders on July 3. Photo: VCG

The Guangzhou Futures Exchange has officially opened its lithium carbonate futures and options to overseas traders.

The policy, which took effect July 3, applies to contracts for July delivery and beyond. Foreign investors are permitted to use U.S. dollars as margin collateral for trading.

The market opening marks China’s latest effort to solidify its pricing power over a critical battery metal while offering global electric vehicle supply chain participants a new tool to hedge against severe price swings.

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Guangzhou Futures Exchange opened lithium carbonate futures and options to overseas traders from July 3, allowing U.S. dollars as margin.
Prices rallied 33.6% since January; the most active contract closed at 168,800 yuan/ton on launch day.
Exchange expects improved price discovery and liquidity; COFCO Futures warned of potential volatility from international capital.

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Who’s Who

Guangzhou Futures Exchange: The Guangzhou Futures Exchange opened lithium carbonate futures and options to overseas traders on July 3, allowing U.S. dollars as margin. This is its first product opened to foreign investors, aiming to enhance price discovery and liquidity while solidifying China's pricing power over the critical battery metal.

COFCO Futures: COFCO Futures, a Chinese brokerage, warned that opening Guangzhou's lithium carbonate futures to foreign investors could amplify market volatility. They noted that international capital inflows, while improving price discovery and liquidity, might increase price swings in the battery metal's futures market.

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What Happened When

July 3, 2026：: Policy allowing overseas traders to trade lithium carbonate futures and options on the Guangzhou Futures Exchange takes effect, applicable to contracts for July 2026 delivery and beyond.

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