BHP to explore Chinese battery partnerships

BHP (NYSE, LSE, ASX: BHP) has signed preliminary agreements with two of China’s leading battery makers to evaluate the use of electric vehicles across its global mining operations.

The partnerships with Contemporary Amperex Technology (CATL) and BYD’s FinDreams Battery (FDB) are to focus on developing powertrain battery systems for heavy-duty mining equipment, BHP said on Monday. The companies also plan to study locomotives, fast-charging infrastructure, energy storage and battery recycling to cut diesel reliance and curb greenhouse gas emissions.

BHP and CATL are to jointly research and develop battery modules for haul trucks and locomotives, particularly in Western Australia’s iron-ore corridors, while the FDB partnership will explore BYD’s commercial and light vehicles for site-level mobility and flash-charging stations to displace diesel use.

Shares of BHP fell 0.7% in New York on Monday morning to $51.72 apiece as tariffs teeter-tottered markets. The company has a market capitalization of about $132 billion.

Emissions targets

The initiatives form part of BHP’s medium-term goal to cut operational emissions by at least 30% by 2030 from 2020 levels, and its long-range ambition to reach net-zero Scopes 1 and 2 emissions by calendar year 2050.

“This relationship is a further step towards BHP meeting our decarbonisation ambitions… by joining forces with industry leaders [like BYD], we are seeking solutions to help shape a more productive and more sustainable resources industry of the future,” said Rashpal Bhatti, BHP Group Procurement Officer.

Jack Li, general manager of FDB’s Global Commercial Vehicle Business Unit, added: “This MOU…represents a pivotal milestone…for accelerating decarbonisation across the global resources sector.”