View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Analysis
October 9, 2020

Tesla looks to tie up nickel supply with BHP deal

Tesla is in talks with BHP – the world’s largest mining group – exploring the possibility of a deal for the supply of nickel.

By Andy Morton

Tesla is in talks with BHP – the world's largest mining group – exploring the possibility of a deal for the supply of nickel. Nickel is a key metal in the construction of electric vehicle (EV) batteries, typically used in the cathode along with manganese and cobalt. The agreement underscores Tesla's ambition to significantly increase its production of EVs and associated batteries, along with its desire to avoid running low on raw material supplies as rival manufacturers ramp up their own EV plans.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

For years, Tesla had relied on its close relationship with Japanese electronics giant Panasonic for supply of the 18650 and 2170 cylindrical cells that make up its battery packs. As the electric car maker targets ever-higher production levels, it has begun to supplement this agreement with cells and materials from other companies – for example, employing cells made by China's CATL in its Chinese-built Model 3s.

However, to achieve even greater scale economies in battery construction, Tesla intends to lean into its gigafactory concept and bring the entire battery-making process in house. This will require the supply of a great deal of raw materials including lithium, cobalt and, of course, nickel. In 2020 alone, Tesla has already signed agreements with Glencore concerning the supply of cobalt and with Piedmont Lithium for the supply of lithium.

The potential deal with BHP is timely because worldwide demand for nickel is expected to skyrocket in line with the proliferation of electric vehicles. More and more manufacturers are beginning to reveal long-term electrification plans – all of which will rapidly increase the use of nickel and other battery-making materials.

Despite this, nickel is currently a comparatively small part of BHP's mining activities. As a result, this will be seen as a positive by BHP's investors who will be reassured that its plan to realign its nickel operations with the needs of EV battery makers is bearing fruit in the form of a deal with arguably the most globally significant EV maker to date.

Increasing the nickel content in EV batteries also has a knock-on benefit of enabling producers to reduce the amount of cobalt used. Cobalt is more expensive than nickel and its supply chain more problematic due to difficulties with tracking the material's original source and concerns over the use of child labour in its extraction.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto