Business

Tesla signs contract to buy nickel directly from mining giant BHP

Tesla signs contract to buy nickel needed to make batteries for electric vehicles directly from mining giant BHP

Tesla has signed a contract to buy nickel directly from mining giant BHP.

The deal gives the controversial billionaire Elon Musk-owned electric vehicle maker a guaranteed stream of the very popular metals used in the manufacture of batteries.

Automobile companies are increasingly looking for ways to ensure access to raw materials, including partnerships with miners.

The contract between Tesla and the FTSE 100 mining giant BHP guarantees the flow of nickel used in the manufacture of batteries for electric vehicles.

Prices of metals used in batteries such as copper, lithium and nickel have all skyrocketed as the government has promised to overhaul energy systems to make them more sustainable.

In many countries, including the United Kingdom, sales of new diesel and petrol vehicles will be completely phased out in the coming decades.

BHP sells Tesla Nickel from Nickel Westsite in Western Australia.

The two companies have not disclosed the value of the deal.

Vandita Pant, BHP’s Chief Commercial Officer, said: “Demand for nickel in batteries is estimated to grow by more than 500% over the next decade, primarily to support growing global demand for electric vehicles.”

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Tesla signs contract to buy nickel directly from mining giant BHP

Source link Tesla signs contract to buy nickel directly from mining giant BHP

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