Ford Motor Company signed a Memorandum of Understanding for nickel (Ni) supply with BHP. The Australian mining company has already signed a nickel supply agreement with Tesla and Toyota.
“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,” said Vandita Pant, BHP Chief Commercial Officer.
Ford Motor Company plans to form a multi-year nickel supply agreement with BHP, slated to start as early as 2025. Ford and BHP’s partnership may involve other commodities over time. BHP will provide Ford with Ni from its Nickel West asset in Western Australia, similar to Tesla’s nickel supply agreement.
Nickel is a major component in the lithium-ion batteries that power electric vehicles.You will also find nickel in everyday electronics including mobile phones, laptops and digital cameras.Learn more here: https://t.co/Lq3XXcJcr7 pic.twitter.com/2ihhMkswtv
— BHP (@bhp) August 1, 2022
Pant highlighted that BHP produces some of the lowest carbon intensity nickel in the world. Plus, the Australian mining company continues to find ways to reduce GHG emissions from its nickel operations. The company is aware that the way raw materials are mined and refined is just as important as the minerals themselves now.
“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,” said Pant.
BHP increases Ni Investments
The Australian mining company plans to increase spending on nickel exploration in the next two years. BHP noted that demand for raw materials used in batteries for electric vehicles is growing, reported Reuters.
“We have budgeted a significant uplift in exploration spend over the next two years, which we expect will advance many of our targets,” said Jessica Farrell, the Asset President of BHP Nickel West. “This year will be the highest annual spend for exploration in Nickel West.
Ford’s EV Goals
Ford aims to achieve a 600,000 EV run rate by 2023. In a press release, the legacy automaker claimed that it had added battery chemistries to achieve its goals. It also secured contracts to deliver 60 GWh of annual battery capacity for its EV production targets. Besides BHP, Ford is also working with another Tesla partners. For instance, Contemporary Amperex Technology Co., Ltd. (CATL) will also help Ford boost its battery supply.
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