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BHP strikes Australia nickel offtake deal with Tesla

22nd July 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Major BHP has struck a nickel supply agreement with electric vehicle and battery technology major Tesla, under which BHP would supply Tesla with nickel from its Nickel West assets, in Western Australia

“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,” BHP chief commercial officer Vandita Pant said.

“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.”

In addition to the supply agreement, BHP and Tesla will collaborate on ways to make the battery supply chain more sustainable, with a 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 who are most aligned with BHP and Tesla’s principles and battery value chains.

BHP will also collaborate with Tesla on energy storage solutions to identify opportunities to lower carbon emissions in their respective operations through increased use of renewable energy paired with battery storage. 

“BHP produces some of the lowest carbon intensity nickel in the world, and we are on the pathway to net zero at our operations. Sustainable, reliable production of quality nickel will be essential to meeting demand from sustainable energy producers like Tesla,” BHP Minerals Australia president Edgar Basto said.

“The investments we have made in our assets and our pursuit of commodities like nickel will help support global decarbonisation and position us to generate long-term value for our business.”

Edited by Creamer Media Reporter

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