One of the worlds biggest EV carmakers has protected itself from a future supply crunch
Tesla has struck a nickel-supply deal with BHP Group.
The Elon Musk-led company is seeking to protect itself from a future supply crunch.
BHP will provide the electric-carmaker with the metal from its Nickel West operation in Western Australia.
In a statement, BHP stated that the two companies would work together to make the battery supply chain more sustainable.
BHP to supply Tesla with nickel from its Nickel West asset in Western Australiahttps://t.co/y5orl2izGF
— First Squawk (@FirstSquawk) July 22, 2021
Growing concern of future nickel supplies
Telsa’s billionaire boss, Elon Musk, has repeatedly expressed concern about future supplies of nickel due to challenges in sustainable sourcing.
Musk has pleaded with miners to produce more nickel, with demand set to skyrocket as the world increasingly moves toward electric vehicles and phase out internal combustion engine cars.
Nickel is a key component in lithium-ion batteries
The product is used in electric vehicles – and Tesla needs it greatly.
It packs more energy into batteries and allows producers to reduce use of cobalt, which is more expensive and has a less transparent supply chain.
