BHP, the world’s largest listed mining company, said on Monday it has signed early-stage agreements with Chinese battery manufacturers CATL and BYD to explore battery solutions for heavy mining equipment and rail locomotives across its global operations.
The agreements aim to jointly research and develop battery-powered systems for large-scale transport, particularly in BHP’s Western Australian iron ore operations, where locomotives haul large volumes over long distances from mine to port. The studies will also include fast-charging infrastructure and battery recycling.
“This strategic relationship marks further progress in BHP’s work to reduce greenhouse gas emissions (GHG) from our operations and enable support for further developments within the global resources sector,” said Rashpal Bhatti, BHP’s Chief Procurement Officer, in a statement.
Bhatti, who took on the procurement role last year at BHP’s South Australian copper operations, previously worked on emissions reductions in the company’s maritime division through the use of LNG-fueled ships.
In addition to the transport-focused collaboration, BHP and BYD’s FinDreams Battery division will explore electric vehicle deployment at mine sites to reduce diesel usage. The miner said these initiatives could support its medium-term goal of reducing operational emissions by at least 30% by 2030 from 2020 levels.
BHP’s climate targets are less aggressive than those of some competitors. Rio Tinto (RIO.AX) has pledged to cut operational emissions by 50% by 2030, while Fortescue (FMG.AX) is targeting net zero emissions without offsets by the end of the decade. High energy costs have added pressure on mining firms operating in Australia, prompting companies like Glencore and Trafigura to assess the viability of their operations in the region.
