Global resources firm BHP has inked an agreement to supply nickel to American carmaker Tesla Inc, the company announced in a statement.

  • Under the agreement, BHP will provide Tesla with nickel from its asset in Western Australia. The two firms will work to establish a sustainable battery supply chain and establish an end-to-end blockchain platform to trace raw materials.
  • The two firms will also exchange information on the production of battery raw materials, and advance sustainability in the resources industry by identifying partners most aligned with the two parties’ principles.
  • The partnership will also cover energy storage solutions, and identify possible steps that could cut down on carbon emissions through higher adoption of renewable energy with battery storage.
  • BHP Chief Commercial Officer Vandita Pant expects demand for nickel in batteries by over 500% in the next 10 years, in line with the higher need for electric vehicles.

BHP Minerals Australia President Edgar Basto said the investments will push for global decarbonization and generate long-term value. BHP is up 0.81%, and TSLA is up 0.32% premarket.