BHP BANKING ON RISE OF ELECTRIC CARS
Miner boosting sales of top-quality nickel used in rechargeable batteries
BHP Billiton Ltd is boosting sales of the top-quality nickel that’s needed for electric vehicle (EV) batteries, another sign the world’s biggest miner is targeting more opportunities in the booming sector.
Sales of refined nickel, a category that includes the premium products used for battery production, jumped 18 per cent in the three months to September 30 from a year earlier, according to a statement yesterday.
The company has begun offering more detailed data on nickel and cobalt production amid investor interest in its exposure to the rise of EVs.
BHP’s Nickel West operation in Western Australia is aiming to sell 90 per cent of output to the battery sector by the end of next year, switching away from a traditional customer base in the stainless steel market.
Laboratory tests are developing methods to produce cobalt sulphate, another key material for rechargeable batteries.
The nickel sector was becoming a two-tiered market, with a weaker outlook for materials bound for the stainless steel industry and robust demand growth in the EV sector that would support prices, said Goldman Sachs Group Inc.
In a note of caution, Russia’s nickel mining giant MMC Norilsk Nickel PJSC sees EV-related demand slowing next year as some countries cut subsidies to the vehicles.
“The market hasn’t made its mind up on how big a deal batteries will be for nickel, but there are a lot of bullish forecasts,” said Mathew Hodge, an analyst at Morningstar Inc, here.