BHP signs agreement to supply Australian nickel to Tesla

Mining giant BHP has signed a nickel supply agreement with electric car manufacturer Tesla.

BHP will supply Tesla Inc. with nickel from its Nickel West asset in Western Australia, one of the most sustainable and lowest carbon emission nickel producers in the world.

Related: Australia set to become a renewable energy superpower, says Tesla chair

Nickel is a key metal used to manufacture Tesla Inc.’s battery technology.

“Demand for nickel in batteries is estimated to grow by over 500 per cent over the next decade, in large part to support the world’s rising demand for electric vehicles,” said Vandita Pant, Chief Commercial Officer at BHP.

“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,” Pant said.

In addition to the supply agreement, BHP and Tesla Inc. 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 Inc.’s principles and battery value chains.

BHP will also collaborate with Tesla Inc. 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,” said Edgar Basto. President of BHP Minerals Australia .

“Sustainable, reliable production of quality nickel will be essential to meeting demand from sustainable energy producers like Tesla Inc,” 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,” he concluded.