Tesla partners up with BHP
BHP has announced a new partnership with Tesla that will result in the Australian mining giant supplying the Californian electric vehicle specialist with nickel from its Nickel West operation in Western Australia.
The nickel will be used in all of Tesla’s battery technology, not just those used to power its EVS.
There is more to the deal than just buy and supply, as the two parties plan to collaborate on ways to make the battery supply chain more sustainable, with a focus on end-to-end raw material traceability as well as energy storage solutions.
BHP chief commercial officer Vandita Pant said demand for nickel in batteries was estimated to grow by more than 500 percent during the next decade, in large part to support the world’s rising demand for electric vehicles.
“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,” she said.
While no dollar value of the deal has been made public, BHP Group’s shares jumped three percent following the initial announcement last week.
In an independent report prepared by Accenture, the global future battery industry is estimated to be worth $7.4-billion annually to the Australian economy and expected to create almost 35,000 jobs by the end of the decade. In addition to this, the Western Australian state government has forecast a tenfold increase in demand for batteries in EVS and energy storage systems in the next 10 years.
WA mines and petroleum minister Bill Johnston said the state had the potential to become a world-leader in the export of future battery minerals and materials.
Tesla is far from the first big name to source at least some of its raw materials from Australia, with BMW announcing in August last year it would be sourcing its lithium from Australia under a deal with Ganfeng worth $865m. – Callum Hunter