Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

BHP (ASX:BHP) share price rises after Tesla deal

The BHP Group Ltd (ASX: BHP) share price went up more than 3% after announcing a deal with Tesla Inc (NASDAQ: TSLA).

BHP’s nickel supply agreement with Tesla

The resources giant revealed it’s going to supply Tesla with nickel from its Nickel West asset in Western Australia. BHP said this was one of the most sustainable and lowest cost carbon emission nickel producers in the world.

Nickel is an important metal that is used to manufacture Tesla’s battery technology for both its electric vehicles and battery storage systems.

In addition to this agreement, the two businesses will work together to make the battery supply chain more sustainable. There will be a focus on being able to trace raw materials throughout the supply chain via blockchain. The two partners will work on promoting the importance of sustainability in the resources sector, including finding partners who are very aligned with BHP’s and Tesla’s principles and battery value chains.

BHP also said that it’s going to work with Tesla on energy storage solutions that will help lower carbon emissions in operations with increased usage of renewable energy combined with battery storage.

Management comments

According to BHP, demand for nickel in batteries is going to grow by over 500% over the next 10 years. A large part of this will be supporting the world’s rising demand for electric vehicles.

BHP Minerals Australia President Edgar Basto then said: “BHP produces some of the lowest carbon intensity nickel in the world, and we are on the pathway to net zero at our operations. Sustainable, reliable production of quality nickel will be essential to meeting demand from sustainable energy producers like Tesla Inc.

“The investments we have made in our assets and our pursuit of commodities like nickel will help support global decarbonisation and position us to generate long-term value for our business.”

Summary thoughts on BHP and the share price

The market seemed to think this was a pretty decent deal considering BHP shares rose 3%. However, I’m not sure how important for BHP’s earnings it is considering nickel is (for now) a small component of the overall BHP business.

Iron ore is the key driver of profit at the moment. And China keeps buying lots of it. But I wouldn’t expect the iron ore price to stay this high forever, so I’m happy to hold off. But it’s good to see BHP linking up with one of the fast-growing and forward-thinking businesses of the world.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.
Skip to content