BHP agrees deal to supply Tesla with Australian nickel

BHP has announced a strategic partnership with Tesla that will see it supply the electric vehicle (EV) maker with nickel from its Western Australia (WA) operations.

The world’s largest mining company said the product Tesla will receive from its Nickel West asset in WA will be one of the most sustainable and lowest carbon emission nickel products in the world. Elon Musk’s technology giant will use the product in its EVs and battery storage systems.

“Demand for nickel in batteries is estimated to grow by over 500% over the next decade, in large part to support the world’s rising demand for electric vehicles,” said BHP chief commercial officer Vandita Pant.

“We are delighted to sign this agreement with Tesla Inc and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation.”

The collaboration will also focus on end-to-end raw material traceability using blockchain, technical exchange for battery raw materials production and promotion of the importance of sustainability in the resources sector, including identifying partners most aligned with BHP and Tesla’s principles and battery value chains.

In June, Tesla said it expects to spend more than $1 billion a year on battery raw materials from Australia given the country’s reliable mining industry and responsible production practices.

“Australia has the minerals to power the renewable energy age throughout the world in the coming years,” Tesla Chairman Robyn Denholm said in a recent speech during a Minerals Council of Australia event.

@RGNonline