Sydney: Anglo-Australian Mining Firm bhp said Thursday it has reached a deal with Tesla to supply nickel – a metal vital in making high-powered batteries for electric cars.
Under the agreement, the innovative carmaker will cut off supplies from a mine in Western Australia, one of the world’s largest sources.
Today most nickel is used in the production of stainless steel.
But demand for the metal is projected to explode over the next decade, as electric vehicles become more common.
Mercurial Tesla CEO Elon Musk previously expressed concern about nickel shortages in the future – which could put the brakes on the efficiency and storage capacity of batteries, as well as make them more expensive to produce.
BHP’s chief commercial officer Vandita Pant predicted that demand would “grow more than 500 percent over the next decade” in large part thanks to nickel trading for batteries.
No details were given on the duration or value of the deal.
President Joe Biden’s administration has pushed US companies to develop supply chains that are not overly dependent on raw materials or production facilities in China that are vulnerable to diplomatic crosswinds.
Australia holds about a quarter of the world’s nickel supply.
Tesla recently reached a similar supply deal goros Nickel mine in New Caledonia.
A slew of Chinese companies are competing to challenge Tesla’s position as the world’s leading electric car maker, including BYD, Nio, Li Auto and . XPeng – which got listed on the Hong Kong Stock Exchange this month.
Under the agreement, the innovative carmaker will cut off supplies from a mine in Western Australia, one of the world’s largest sources.
Today most nickel is used in the production of stainless steel.
But demand for the metal is projected to explode over the next decade, as electric vehicles become more common.
Mercurial Tesla CEO Elon Musk previously expressed concern about nickel shortages in the future – which could put the brakes on the efficiency and storage capacity of batteries, as well as make them more expensive to produce.
BHP’s chief commercial officer Vandita Pant predicted that demand would “grow more than 500 percent over the next decade” in large part thanks to nickel trading for batteries.
No details were given on the duration or value of the deal.
President Joe Biden’s administration has pushed US companies to develop supply chains that are not overly dependent on raw materials or production facilities in China that are vulnerable to diplomatic crosswinds.
Australia holds about a quarter of the world’s nickel supply.
Tesla recently reached a similar supply deal goros Nickel mine in New Caledonia.
A slew of Chinese companies are competing to challenge Tesla’s position as the world’s leading electric car maker, including BYD, Nio, Li Auto and . XPeng – which got listed on the Hong Kong Stock Exchange this month.
.