PERTH (miningweekly.com) – Diversified miner BHP has entered into a memorandum of understanding (MoU) with automotive giant Ford to supply nickel.

The targeted multi-year nickel supply agreement could start as early as 2025 and may involve additional commodities over time.

BHP will explore options to supply Ford with nickel from its Nickel West asset in Western Australia, a producer of some of the most sustainable and lowest carbon intensity nickel in the world.

In addition, BHP and Ford are exploring ways to make battery supply chains more sustainable and efficient, including opportunities for further alignment on best practice and raising ESG performance transparency.

“BHP produces some of the lowest carbon intensity nickel in the world, and we are working hard to reduce greenhouse gas emissions from our nickel operations even further. Sustainable, reliable production of quality nickel will be essential to meeting demand from automakers like Ford Motor Company who are focused on producing their vehicles in an increasingly sustainable way,” BHP chief commercial officer Vandita Pant said.

“We are pleased to announce this arrangement with Ford, and more importantly, to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on end-to-end collaboration, as well as technological and commercial innovation.”

According to third-party analysis, BHP’s Nickel West asset has one of the world’s lowest operational carbon emissions intensities for nickel mining operations and plans to further reduce emissions, making BHP a partner of choice to battery electric vehicle manufacturers across the globe that value sustainability and transparency.

“Demand for nickel in batteries is estimated to grow four-fold over the next decade, in large part to support the world’s rising demand for electric vehicles,” Pant said.

“While what we produce is essential, never before has how we produce and manage our products through our supply chain been more important. Customers increasingly care about where products come from: their environmental and ethical footprints, as well as the efficiency and transparency of their supply chains.”

Ford has signed a spate of MoUs with Australian battery mineral producers, including ioneer, Syrah and Rio Tinto.