Ford signs nickel supply agreement with Australian mining company
Ford Motor Company has signed a Memorandum of Understanding to supply nickel (Ni) with BHP. The Australian mining company has already signed a nickel supply agreement with Tesla and Toyota.
“We are pleased to announce this agreement with Ford Motor Company and, more importantly, to work with them to find 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, commercial director at BHP.
Ford Motor Company plans to enter into a multi-year nickel supply agreement with BHP, which is expected to commence as early as 2025. Over time, the partnership between Ford and BHP could also cover other commodities. BHP will supply Ford Ni from its Nickel West asset in Western Australia, as in the Tesla nickel supply agreement .
Pant stressed that BHP produces the lowest carbon-emitting nickel in the world. In addition, the Australian mining company continues to look for ways to reduce greenhouse gas emissions from its nickel operations. The company recognises that the way raw materials are extracted and processed is now just as important as the minerals themselves.
“Sustainable and reliable production of quality nickel will be essential to meet demand from carmakers such as Ford Motor Company, who are focused on producing their cars in an increasingly environmentally friendly way,” Pant said.
BHP INCREASES INVESTMENT IN NI
The Australian mining company plans to increase spending on nickel exploration over the next two years. BHP said demand for the raw material, used in batteries for electric vehicles, was growing, Reuters reported .
“We have budgeted a significant increase in exploration spending over the next two years, which we expect will meet many of our targets,” said Jessica Farrell, president of assets at BHP Nickel West. “This year will be the highest annual exploration spend in Nickel West.
FORD TARGETS FOR ELECTRIC VEHICLES
Ford aims to reach 600,000 electric vehicle mileage by 2023 . In a press release, the outdated carmaker said it had added battery chemistry to meet its targets. It has also contracted to supply 60GWh of annual battery capacity for its electric vehicle manufacturing targets. In addition to BHP, Ford is also working with other Tesla partners. For example, Contemporary Amperex Technology Co., Ltd. (CATL) will also help Ford increase its battery supply.