Tesla CEO Elon Musk has been citing his anxiety over the lack of nickel available in the market.
BHP president Edward Haegel offered the option of Tesla using his company’s nickel supply, with about 70 percent of it already being used to create batteries worldwide.
Musk Tweeted “Nickel is our top concern right now for increasing lithium-ion production. That’s why we’re changing our standard cars to iron cathode. There is plenty of iron and lithium out there!”.
In July last year, Musk announced that a “giant long-term contract” would be given to any miner with the ability to provide nickel due to the high cost of batteries.
Tesla manufacturing executive Drew Baglino told reporters that the company wanted to mine its own battery metals.
“We’re going to create our own cathode facility here in North America, leveraging all resources in North American for lithium and nickel,” Baglino said.
“Just that and localizing our cathode production and supply chain can lower the miles traveled by the materials we need by 80 percent, which is a large cost savings.