Tesla strikes deal to buy nickel needed to make electric car batteries direct from mining giant BHP
Tesla has struck a deal to buy nickel directly from mining giant BHP.
The contract gives the electric car maker, run by controversial billionaire Elon Musk, a guaranteed power of the highly sought-after metal, which is used to make electric batteries.
Car companies are increasingly looking for ways to ensure they can access raw materials, including by partnering with miners.
Tesla’s deal with FTSE 100 mining giant BHP will give it a guaranteed current 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 exploded as governments pledged to overhaul their energy systems to make them more sustainable.
In many countries, including the UK, sales of new diesel and petrol cars will be completely halted in the coming 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 more than 500 percent over the next decade, largely to support the growing demand for electric vehicles in the world.”