Tesla strikes deal to buy the nickel it needs to make electric car batteries directly from mining giant BHP
Tesla has struck a deal to buy nickel directly from mining giant BHP.
The contract will give the electric car maker, run by controversial billionaire Elon Musk, a guaranteed stream of the highly sought-after metal, which is used to make electric batteries.
Car companies are increasingly looking for ways to ensure they can get access to raw materials, including teaming up with miners.
Tesla’s deal with FTSE 100 mining giant BHP will give it a guaranteed stream of nickel, which is used to make batteries for its electric cars
The prices of metals used in electric batteries such as copper, lithium and nickel have all rocketed as governments have pledged to overhaul their energy systems to make them more sustainable.
In many countries, including the UK, sales of new diesel and petrol cars are being phased out entirely over the next couple of decades.
BHP will sell Tesla nickel from its Nickel West site in Western Australia.
The companies have not said how much the contract is worth.
BHP chief commercial officer Vandita Pant said: ‘Demand for nickel in batteries is estimated to grow by over 500 per cent over the next decade, in large part to support the world’s rising demand for electric vehicles.’