BHP inks deal with China research firm on electric transport

Anglo-Australian mining giant BHP has signed an agreement with Chinese automotive think tank, Automotive Data of China designed to support the latter’s research into Chinese transport electrification.

Automotive Data of China (ADC), a subsidiary of the Chinese state-owned China Automotive Technology and Research Center (CATARC), which was established in 1985 in an effort to manage China’s automotive industry.

Serving as the country’s centralised technical organisation of the automotive industry, as well as the technical supporting body to relevant national governmental departments, CATARC is involved in testing and inspection, standardisation and technical regulation, as well as innovation and research into a range of technologies including electric vehicles, lithium-ion batteries, and hybrid powertrains.

The newly announced agreement between BHP and ADC will start as a two-year partnership between the two companies designed to focus on researching the key drivers for the development of energy-saving and new energy vehicles in China.

The partnership will work on such development areas as the manufacturing value-chain, efficiency, consumer attitudes and products development, battery chemistry, technical performance, the policy environment, and the long-range outlook for electrification.

“We are confident about the outlook for EVs in China, with a world-leading policy-manufacturing-infrastructure-consumer eco-system in place to support rapid adoption. As one of the major global suppliers of nickel, BHP is well-positioned to help EVs thrive in the world’s largest auto market” said Huw McKay, BHP’s Vice President Market Analysis & Economics.

BHP is one of the world’s leading suppliers of nickel, one of the vital components in lithium-ion batteries that, among other things, are the dominant battery technology found in electric vehicles.

Already over 75% of BHP’s nickel is sold to electric battery material suppliers, and unsurprisingly, BHP currently intends to invest in expanding its nickel operations and exploration activities to meet increasing global demand.

“Profound change is underway in the automotive industry, as energy-saving and new energy vehicles continue to be a priority for the strategic development of the Chinese automotive industry over the next few years, playing a key role in achieving carbon neutrality in the sector,” said Feng Yi, GM for Automotive Data of China Co., Ltd (ADC).

“ADC has been actively conducting in-depth research in energy saving, low-carbon and green development strategies for the automotive industry by leveraging big data, models and algorithms. Our research continuously provides support to the industry as well as relevant government agencies for their strategic planning and decision-making.

BHP’s company-wide carbon emission reduction efforts have also led to recent efforts at its Nickel West operations. Specifically, announced earlier this year, BHP partnered with Toyota Australia on the trial of a new light electric vehicle (LEV) at its Nickel West operations.

BHP began using a converted LandCruiser 70 at its Nickel West operations, fulfilling several roles at the site and operating both above ground and underground. The move builds on previous trials undertaken by BHP with other suppliers that are currently ongoing at its Olympic Dam operations in South Australia and its Broadmeadow operations Queensland.