More investment into nickel mine development and exploration in Western Australia is being undertaken by BHP to meet electric vehicle (EV) battery demand.
BHP is building what could be the world’s largest battery-grade nickel sulphate plant near Perth, expected to start in April 2019.
The plant could produce 100,000 tonnes of nickel sulphate, accounting for about 22,000 tonnes of nickel, and could aim to double capacity if an extension is added.
BHP is boosting output to be “as self-sufficient as possible”, asset president Eduard Haegel told Reuters at the Diggers and Dealers mining conference in Kalgoorlie.
Nickel demand is growing to help provide new battery technologies for greater EV range.
Using more nickel also cuts costs by reducing the amount of expensive cobalt used in EV battery technology.
Nickel, manganese and cobalt (NMC) lithium-ion batteries usually have 60% nickel to 20% cobalt and 20% manganese.
Battery makers are changing that to 80% nickel, 10% cobalt and 10% manganese.
BHP is proceeding with a trial of cobalt sulphate production at a pilot plant with a view to eventually produce a battery-grade nickel sulphate product with low cobalt sulphate content, Haegel says.
BHP also buys nickel concentrate from other miners.
Several other companies are considering nickel sulphate plants as well.
Perth-based Independence Group, which supplies some of BHP’s needs, will assess whether to build its own nickel sulphate plant by early next year.
