(Yicai) July 14 -- Australian iron ore giant BHP Group is teaming up with the world’s two biggest electric vehicle battery suppliers, Contemporary Amperex Technology and BYD, to promote the mining sector’s shift towards electrification and to help BHP achieve its carbon reduction goals.

BHP will work with CATL and BYD’s wholly-owned subsidiary FinDreams Battery to develop battery solutions for heavy-duty mining equipment and locomotives. They will also explore the application of fast-charging infrastructure, energy storage systems and battery recycling in the mining sector, the Melbourne-based firm said today in two separate statements.

These efforts are aligned with BHP’s long-term goal to achieve net zero operational greenhouse gas emissions, namely Scopes 1 and 2 from its operated assets, by 2050, the company said.

“This strategic relationship marks further progress in BHP’s work to reduce greenhouse gas emissions from our operations and enable support for further developments within the global resources sector,” said Procurement Officer Rashpal Bhatti, adding that working with industry leaders like Ningde-based CATL and BYD can drive a more efficient and sustainable future for the resources industry. 

CATL and Shenzhen-based BYD have consistently ranked as the world’s top two EV battery suppliers in recent years, together commanding more than half of global market share.

In the first quarter, CATL’s installed battery capacity surged 40 percent from the same period last year to 84.9 gigawatt-hours, giving it a 38 percent share of the world’s market while BYD’s installed battery capacity jumped 62 percent to 37 GWh, accounting for around 17 percent, according to data from South Korean market research firm SNE Research.

As the world’s largest importer of iron ore, China is BHP’s biggest market. China contributed USD34.7 billion in sales in the fiscal year ending June 30, 2024, making up 62 percent of BHP’s total revenue, according to an earlier financial report released by the company.

Editor: Kim Taylor