What's Going On With BHP Group?
BHP Group (BHP) today announced it's entering into a nickel supply agreement with EV giant Tesla. Shares of the company are trading 0.65% lower to $75.14 a share on Thursday.
What Does This Mean For BHP Group?
The agreement means BHP will supply Tesla with nickel from its Nickel West asset in Western Australia that it claims is one of the most sustainable and lowest carbon emission nickel producers in the world. Nickel, of course, is one of the primary metals used to make batteries that run electric vehicle. Tesla, one of the biggest electric car and eco-sustainable companies in the world, aims to lead the way to electric conversion.
"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. We are delighted to sign this agreement with Tesla Inc., and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation," said BHP Chief Commercial Officer, Vandita Pant.
Additionally, BHP and Tesla will work together on energy storage solutions.
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BHP is a leading global diversified miner supplying iron ore, copper, oil, gas, and metallurgical. A 2001 dual-listed merger of BHP Limited (now BHP Ltd.) and Billiton PLC (now BHP PLC) created the present-day BHP. Shareholders in each company have equivalent economic and voting rights in BHP as a whole. Major assets include Pilbara iron ore, Queensland coking coal, Escondida copper and conventional petroleum assets, principally in Australia and the Gulf of Mexico. Onshore U.S. oil and gas assets were sold in 2018.