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Tesla is in talks with BHP Group for a nickel deal as the California-based manufacturer aims to boost production, according to Bloomberg.
Tesla is currently working on increasing the amount of nickel used in batteries to improve performance, and as the company continues its strides towards producing its own batteries. Nickel also reduces the use of cobalt, which is more expensive and usually has a less transparent supply chain.
Pricing negotiations have not reached a final agreement, said Bloomberg source. "Talks are held up on pricing, and no final agreement has been reached so far between the automaker and BHP, the world’s largest miner," said a source, requesting anonymity because the talks are private.
The deal with Tesla may come as a surprise to some BHP investors, as nickel makes up only a small part of the company's business. That would mean real progress in the company's efforts to expand its business and retool its nickel division to serve battery manufacturers.
Both companies did not respond to requests for comment.
Tesla has promised a giant contract to miners who will mine the metal in an environmentally friendly way. Tesla CEO Elon Musk confirmed that he had spoken to several nickel producers about this, without naming the companies.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.