BHP Inks Nickel Supply Deal With Tesla
July 21 2021 - 8:01PM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--BHP Group Ltd. said it has signed a supply deal with
Tesla Inc. for nickel, a commodity used in electric-vehicle
batteries, from its Nickel West operations in western
Australia.
The world's biggest miner by market value said it and Tesla have
also agreed to collaborate on sustainability efforts in the battery
industry supply chain, such as ways to trace raw materials from pit
to product using blockchain.
BHP Chief Commercial Officer, Vandita Pant, said demand for
nickel in batteries is expected to rise more than sixfold over the
next decade in big part because of growing demand for electric
vehicles. Batteries with a high nickel content are becoming more
popular because of the metal's stability under high temperatures
and its resistance to overcharging, analysts say.
The two companies will discuss opportunities to lower carbon
emissions in their respective operations, as well, by using more
renewable energy and battery storage, BHP said.
BHP's Nickel West operation has experienced a turn of fortune in
recent times, having been slated for sale as recently as 2019. Now,
nickel has become a priority for BHP because of its expectations of
a boom in battery demand and widespread electrification. The
company will soon begin production from one of the world's largest
nickel-sulfate plants.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
July 21, 2021 19:55 ET (23:55 GMT)
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