Tesla Signs Direct Nickel Purchase Agreement with BHP

Securing BHP Supply Chain Following New Caledonia

[Asia Economy Reporter Yujin Cho] U.S. electric vehicle company Tesla has signed a nickel supply contract, a key material for electric vehicle batteries, with Australia's BHP, the world's largest mining company, Bloomberg reported on the 21st (local time).

BHP stated in a press release that it plans to supply nickel produced at Nickel West in Western Australia to Tesla. Although BHP did not disclose specific details such as the contract duration and supply volume, it said it would cooperate to stabilize Tesla's battery raw material supply chain.

The mines owned by Nickel West, a BHP subsidiary, cover an area of about 13,000 km² and produce approximately 200,000 tons of nickel annually.

Elon Musk, Tesla's CEO, has repeatedly expressed concerns about securing the supply chain for nickel, an essential mineral for manufacturing lithium-ion batteries.

As global automakers rush to declare a paradigm shift to electric vehicles, the prices of key battery raw materials are soaring, and the prolonged shortage of automotive semiconductors is causing difficulties in stabilizing the supply chain.

Earlier in February, Musk expressed his concerns on his Twitter account, stating, "Nickel is the biggest worry in lithium-ion battery cell manufacturing."

Tesla has previously signed a cobalt supply contract, another essential mineral for battery manufacturing, with Glencore, the world's largest mining company, and agreed with the New Caledonian government to receive long-term nickel supplies. While Tesla does not hold shares in nickel mines, it is involved in production by serving as a technical advisor.

This content was produced with the assistance of AI translation services.