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Tesla takes a new step in the race for basic battery materials

Tesla has signed a deal with miner BHP to supply it with nickel, a key material for electric car batteries.

Tesla CEO Elon Musk has declared for a year that the availability of nickel is the biggest challenge to increasing production of powerful batteries.

Due to the increasing demand for electric vehicles and the increase in battery capacity, a shortage is imminent. An additional cause for concern is China’s tight grip on Indonesia’s critical nickel production.


nickel in battery

An electric car battery contains about 40 kilograms of nickel.

So Musk wants to ensure the necessary supply from Western countries. In the past eight months, he’s already made deals with Vale and Trafigura. In addition, a deal with the world’s largest mining company BHP has now been added. Under the agreement, BHP will supply nickel from Australia’s Nickel West, which produces about 800,000 tons per year (representing about two million electric vehicles).

Tesla confirms that it will work with BHP to make production as sustainable as possible and reduce emissions as much as possible. Musk also makes a fist against china that pollutes nickel.

Along with cobalt and lithium, nickel is one of the most important materials used in the manufacture of car batteries. About 40 kilograms of nickel is required for an all-electric vehicle. According to observers, the demand for raw materials will increase by 500 percent over the next ten years.