On Tesla Inc's (NASDAQ:TSLA) second-quarter earnings call, CEO Elon Musk asked nickel miners to ramp up mining operations. Tesla will need a lot more nickel if the company's plan for the new 4680 battery is to come to market and be mass produced. Tesla will be using nickel in high performance and long-lasting batteries for electric vehicles.
Now, a report from Bloomberg reveals Tesla is in talks with BHP Group Ltd (NYSE:BHP) on a nickel deal to secure the supply needed for future plans. According to Bloomberg sources, the talks are currently stalled on pricing, with no clear end in sight.
While nickel is a small portion of BHP's mining operations, these talks could signal BHP is looking to expand its nickel mining capabilities.
Benzinga's Take: Tesla recently revealed the company will be mining and processing its own lithium. Now it looks like Tesla is close to securing a miner for the nickel that seems to be in short supply.
If Tesla can ramp battery production, with high yields, it will allow the company to release the Cybertruck, Plaid Model S, and Tesla Semi, which will all use high purity nickel batteries.
Photo from Tesla Battery and Investor Day