Sydney: Anglo-Australia Mining Company BHP said Thursday it had reached an agreement to provide Tesla with nickel supply – metal vital in producing high-powered electric batteries for electric cars.
Under the agreement, innovative car makers will lock the supply of mines in Western Australia, one of the largest sources in the world.
Most of the nickel today is used in stainless steel production.
But metal demand is projected to explode over the next decade, because electric vehicles become more common.
The CEO of Tesla Mercurial Elon Musk previously voiced concerns about the lack of nickel in the future – which could put the brakes on the efficiency and capacity of battery storage, and made it more expensive to produce.
Head of Commercial Officer BHP Pants Vandita predicts requests will “grow more than 500 percent over the next decade” Most thanks to the nickel-for-battery business.
There is no detailed duration or value of the agreement disclosed.
President Joe Biden’s administration has encouraged US companies to develop a supply chain that is not too dependent on raw materials or production facilities in China which are susceptible to diplomatic crosswinds.
Australia holds about a quarter of the world nickel supply.
Tesla recently reached a supply deal similar to the goro nickel mine in the new Caledonia.
A Chinese company raft competes to challenge the position of Tesla as the world’s leading electric car manufacturer, including Byd, Nio, Li Auto and XPeng – which this month is listed on the Hong Kong Stock Exchange.