BHP Group signs nickel supply agreement with Tesla

(Alliance News) - Anglo-Australian miner BHP Group PLC on Thursday has signed a nickel supply ...

Alliance News 22 July, 2021 | 6:11AM
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(Alliance News) - Anglo-Australian miner BHP Group PLC on Thursday has signed a nickel supply agreement with San Carlos, California-based electric vehicles manufacturer Tesla Inc.

Under the deal, BHP will supply Tesla with nickel from its Nickel West asset in Australia, to be used as a key metal used by Tesla to manufacture electric vehicle batteries.

The two companies will also work together on finding new ways to make the battery supply chain more sustainable, and also to identify opportunities to lower carbon emissions through the increased use of renewable energy.

"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. We are delighted to sign this agreement with Tesla, and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation," said Chief Commercial Officer Vandita Pant.

Shares in BHP Group were up 3.0% at AUD51.40 on Thursday in Sydney. Tesla's shares closed down 0.8% at USD655.29 in New York on Wednesday. In after hours trade, shares were 0.1% lower at USD654.70.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
BHP Group PLC 1,873.80 GBX -4.80
Tesla Inc 759.49 USD 0.33

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