BHP Thinks U.S. and Europe's EV Metals Search Will Benefit Australia

According to BHP Group's nickel operations chief, eco-friendly mining and minerals for decarbonisation will benefit Australia (NYSE:BHP).

According to Jessica Farrell, Asset President for BHP Nickel West, the August passage of the U.S. Inflation Reduction Act, which allows substantial tax credits for battery cell processing, and the European Commission's Battery Recycling initiative show governments' increased focus on electric vehicle (EV) minerals like lithium, nickel, and copper.

"Given our efforts to solve these ethical and environmental challenges," Farrell remarked at an international mining conference in Sydney on Thursday.

The US Inflation Reduction Act links EV tax credits to domestic or 20 allied minerals, including Australia.

Since the Act passed, American mining and automotive firms have sought partnerships with Australian nickel and lithium producers.

BHP's Nickel West business has the second-largest nickel sulphide resource base and plans to increase nickel exploration over the next two years.

Nickel West supplies Tesla, Toyota, and Ford.

Farrell said BHP expects 60% of car sales to be electric by 2030 and 90% by 2040.

Nickel demand is expected to rise 200–300% over the next 30 years, according to BHP.

Farrell said BHP wants Australia to mandate all new vehicles be electric by 2035 and provide infrastructure.

"Canberra was the first Australian city to mandate electric cars by 2035 with generous incentives. We hope other governments would follow suit and invest the essential infrastructure for its success "said.