Tesla Inc. (NASDAQ: TSLA) is in discussion with Top Miner BHP Group Limited (NYSE: BHP) over the nickel supply deal. The electric car maker is trying to secure the nickel supply for future use as the company expects to grow the deliveries in the coming months. CEO Elon Musk has asked nickel miner to speed up the mining operations. The electric-car maker will need more nickel if it is planning for the new 4680 battery. Tesla will be using nickel in high performance and long-lasting batteries for electric vehicles.
The report disclosed that Tesla is in talks with BHP Group but the deal is not finalized yet as both the companies are currently negotiating the pricing terms. Nickel is the main component of the cathodes of EV batteries. Tesla is trying to increase the amount of metal used in vehicles to improve its performance.
If this deal will be finalized it would be a surprise for some of the investors of BHP as the nickel makes up a small part of the business of BHP. If Tesla will secure this deal, it means BHP is also trying to expand to its nickel mining capabilities.
Tesla Inc. (NASDAQ: TSLA) shares were trading down -2.75%% at $413.98 at the time of writing on Wednesday. Tesla Inc. (NASDAQ: TSLA) share price went from a low point around $45.71 to briefly over $502.49 in the past 52 weeks. It has moved up 805.67% from its 52-weeks low and moved down -17.61% from its 52-weeks high. TSLA market cap has remained high, hitting $416.48 billion at the time of writing.
On the other side, BHP Group shares went down 3.20% to $50.50 during the trading session on Tuesday. In the past 52-weeks of trading, this company’s stock has fluctuated between the low range of $29.78 and a high range of $58.35. It has moved up 69.58% from its 52-weeks low and moved down -13.46% from its 52-weeks high. Looking at its liquidity, it has a current ratio of 1.40. This company has a market capitalization of $119.18 billion.