Investing.com – BHP (NYSE:BHP) and Tesla (NASDAQ:TSLA) stocks were among the gainers in Thursday’s premarket trading following an agreement under which the miner will supply nickel to the electric vehicle maker.
BHP was up 1% and Tesla 0.4%.
Nickel is one of the key metals used to make batteries that run electric vehicles.
BHP will supply Tesla with nickel from its Nickel West asset in Western Australia that it claims is one of the most sustainable and lowest carbon emission nickel producers in the world.
The agreement is much broader than a mere supply agreement. The two companies will collaborate to make the entire battery supply chain more sustainable including working on storage solutions along with looking for more ways to deploy renewable energy, according to a joint statement.
According to BHP Chief Commercial Officer, Vandita Pant, demand for nickel in batteries is estimated to grow by over 500% over the next 10 years, in large part to support the world’s rising demand for electric vehicles.