FOCUS: Nickel producer sustainability credentials take spotlight in long-term supply negotiations

Nickel producers are putting an increased focus on sustainability credentials in a bid to lock in consumer demand from the automotive industry, sources told Fastmarkets.

Increased scrutiny from end consumers and government policy on lower carbon emissions throughout the supply chains have nickel producers looking to highlight sustainability to secure long-term deals. 

Most recently, international mining company BHP have signed an agreement to supply nickel to electric vehicle (EV) manufacturer Tesla Inc. on Thursday July 22, marking another long-term supply deal with an emphasis on establishing a low-carbon supply chain.

BHP will supply Tesla Inc. with nickel manufactured from their Nickel West asset in Western Australia.

The partnership was formed with the ambition to promote sustainability within the mining and resources sector, with the two companies also collaborating on energy storage solutions.

"BHP produces some of the lowest carbon intensity nickel in the world, and we are on the pathway to net zero [emissions] at our operations. Sustainable, reliable production of quality nickel will be essential to meeting demand from sustainable energy producers like...

Published

Justin Yang

Imogen Dudman

July 27, 2021

14:24 GMT

London