BHP Strikes Key Deal with China's CATL to Secure Battery Supply Chain
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Australian mining giant BHP has inked a memorandum of understanding (MoU) with Contemporary Amperex Technology Co. Limited (CATL), the world’s largest battery manufacturer, in a strategic move to bolster its position in the global electric vehicle (EV) supply chain. The agreement, announced on July 14, 2024, aims to enhance collaboration on sustainable battery materials, including nickel and lithium—key components for EV batteries. The partnership underscores BHP’s push to diversify beyond traditional commodities like iron ore and coal, as demand for critical minerals surges amid the global energy transition. CATL, which supplies major automakers including Tesla and BMW, will benefit from a more stable supply of high-quality raw materials. Analysts suggest the deal could also pave the way for joint ventures in mineral processing or recycling initiatives. This collaboration comes as Western nations increasingly seek to reduce reliance on Chinese battery dominance, while simultaneously relying on China’s refining expertise. BHP’s CEO Mike Henry emphasized the importance of 'secure and sustainable supply chains' in a statement, signaling alignment with broader industry trends toward decarbonization. Additional reporting from Reuters highlights similar partnerships forming globally, such as Tesla’s recent agreements with Australian lithium producers, reflecting intensifying competition for battery resources. Meanwhile, CATL continues expanding its overseas footprint, with plans for new factories in Europe and North America.
