Tesla in talks with BHP over nickel supply pact

Tesla Inc is in talks with BHP Group regarding a nickel supply deal as the electric automaker targets higher production and seeks to prevent a supply crunch, Bloomberg News reported on Tuesday, citing people knowledgeable with the matter.

Talks are held up on costing and no final agreement has been reached until now between Tesla and BHP, the report added.

Tesla and BHP did not immediately reply to request for comments by Reuters.

Earlier in July, Tesla CEO Elon Musk, on a post earnings call with analysts, urged miners to produce more nickel, a major ingredient in batteries that power the automaker’s electric cars, warning the present cost of batteries remained a big obstacle to Tesla’s growth.