BHP in Tesla deal

Western Australia’s role in the electric vehicle supply chain has received a big boost, with BHP Nickel West announcing a deal with carmaker Tesla.

BHP said it was announcing the agreement to supply nickel from Nickel West, although the specifics of the agreement were unclear.

Tesla is a Nasdaq-listed electric car manufacturer led by famed entrepreneur Elon Musk, with a market capitalisation of more than $US600 billion.

BHP chief commercial officer Vandita Pant said demand for nickel in batteries was estimated to grow 500 per cent in the next decade.

“We are delighted to sign this agreement with Tesla, and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation,” Ms Pant said.

The two companies will also work on improving sustainability in the battery supply chain and storage solutions.

BHP Minerals Australia President Edgar Basto said the company was on the pathway to net zero carbon emissions.

“The investments we have made in our assets and our pursuit of commodities like nickel will help support global decarbonisation and position us to generate long-term value for our business,” he said.

Mines and Petroleum Minister Bill Johnston said the deal showed WA had materials to help the world’s decarbonisation and it was a destination where global brands could know inputs were responsibly sourced.

"As investors and the community are increasingly holding mining companies to the highest ESG standards and practices, the supply agreement between BHP and Tesla reflects the regulatory framework in place in Western Australia that ensures the sustainable production of battery materials," Mr Johnston said.