This is the second major move to secure nickel supplies that Musk has made this year. March 9: "New Caledonia agrees to Vale nickel mine sale, Tesla to be partner" (TSLA; VALE)
And from Bloomberg:
Tesla Inc. has struck a nickel-supply deal with BHP Group, as the electric-car maker seeks to protect itself from a future supply crunch.
BHP will provide the automaker with the metal from its Nickel West operation in Western Australia, the world’s biggest miner said in a statement. BHP gave few further details, but said the companies would work together to make the battery supply chain more sustainable.
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.
Nickel is a key component in lithium-ion batteries, used in electric vehicles. 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....
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Related, March 1:
"10 charts show China’s grip on battery supply chain to last decades"
Which discusses nickel and also has a link to a Reuters Explainer: "How the New Caledonia government collapse may affect the nickel market".
And on China's efforts in the same direction:ICYMI: "The king of nickel is betting big on a green future in batteries"
