Highlights:
- Popularly known iron ore miner, BHP Group Ltd (ASX:BHP) will now focus on Nickel exploration in upcoming years.
- BHP aims to mitigate the rising demand for EV batteries by producing Nickel, as it is an important element of EV batteries.
- BHP expects to produce around 80kt to 90kt of Nickel in FY23.
Australian iron ore mining giant BHP Group Limited (ASX:BHP) will be focusing on Nickel production in upcoming years. Nickel is an important element of electronic vehicles’ batteries. Thus, BHP will now work on developing the component needed to produce electronic vehicle batteries to meet its demand.
The shares of BHP were spotted trading 1.087% lower at AU$38.190 per share at 12:45 PM AEST on the ASX today (4 August).
Why is BHP in news?
Although BHP is popularly known for being a significant iron ore producing company in Australia, its Nickel West unit has already secured deals with Tesla (NASDAQ:TSLA), Toyota, and Ford. BHP is also the owner of the second largest Nickel sulphide resource base in the world.
Tesla Inc (NASDAQ:TSLA) is currently considered as the largest manufacturer of electric vehicles and battery storage systems in the world. It is supposed to be on a mission to take ahead the shift to sustainable energy. Nickel is a vital metal used in making batteries by Tesla.
During the June quarter (which ended on 30 June 2022), BHP reported that its Nickel production went up by 1% to 18.8kt. There was an improvement in the production of Nickel as COVID-19 threats had reduced among its employees.
Furthermore, the company also reported a surge of 43% in nickel prices in FY22.
As far as FY23 production is concerned, BHP is expecting to deliver around 80kt to 90kt of Nickel in the upcoming financial year.
BHP believes that electric vehicles will soon dominate the automobile industry. By the end of 2030, almost 60% of the car sales will be of electric vehicles. By 2040, the sale of electric vehicles is expected to gain by 90% worldwide.
BHP’s share price performance on the ASX:
Within the last 12 months, BHP’s share price has fallen significantly by more than 29% on the ASX. The iron ore miner’s YTD-based share price dropped by 9.82% and in last six months, the share price of BHP has declined by more than 18% on the ASX (As of 12:45 PM AEST)