BHP and global carmaker Ford Motor Company have entered into a Memorandum of Understanding (MOU) for nickel supply.
BHP said the targeted multi-year nickel supply agreement – which follows the signing of supply and collaboration agreements with nickel product end-users Tesla and PPES & Toyota Tsusho Corporation – could start as early as 2025 and include additional commodities over time.
The mining giant will explore options to supply Ford Motor Company with nickel from its Nickel West asset in Western Australia, which produces some of the most sustainable and lowest carbon intensity nickel in the world.
Under the MOU, the two companies will also explore ways to make battery supply chains more sustainable and efficient, including opportunities for further alignment on best practice and raising ESG performance transparency.
BHP Chief Commercial Officer, Vandita Pant, said: “BHP produces some of the lowest carbon intensity nickel in the world, and we are working hard to reduce GHG emissions from our nickel operations even further.
“Sustainable, reliable production of quality nickel will be essential to meeting demand from automakers like Ford Motor Company who are focused on producing their vehicles in an increasingly sustainable way.
“We are pleased to announce this arrangement with Ford Motor Company, and more importantly, to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on end-to-end collaboration, as well as technological and commercial innovation.