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BHP inks deal with Tesla to supply nickel
Print Edition
Anglo-Australian mining firm BHP said yesterday it had reached a deal to provide Tesla with supplies of nickel 鈥 vital in producing high-powered batteries for electric cars.
Under the agreement, the innovative carmaker will lock in supplies from a mine in Western Australia, one of the world鈥檚 largest sources.
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 has previously voiced concern about future nickel shortages 鈥 which could put a brake on the efficiency and storage capacity of batteries, as well as making them more costly.
BHP chief commercial officer Vandita Pant predicted demand will 鈥済row by over 500 percent over the next decade鈥 in large part thanks to the nickel-for-batteries business.
No details of the duration or value of the deal were disclosed.
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