(Updates with CME Group's response in the fifth paragraph.)

CME Group (CME) is exploring plans to launch the world's first rare earth futures contract, Reuters reported Wednesday, citing three sources with knowledge of the matter.

The proposed contract would focus on neodymium and praseodymium, two key rare earths used in permanent magnets for EV motors, wind turbines, fighter jets, and drones, the report said.

No final decision has been made on whether to proceed with a launch, the report said.

Intercontinental Exchange (ICE) also is in the early stages of exploring rare earth futures, though its efforts are less advanced, the report said.

CME Group declined to comment, and Intercontinental Exchange didn't immediately reply to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 307.08, Change: +0.32, Percent Change: +0.10