A Tesla Inc. Supercharger station in a parking lot in Shanghai, China, on Saturday, July 3, 2021. After receiving red-carpet treatment from government officials, who granted Tesla the unprecedented concession of allowing it to wholly control its local subsidiary, the carmaker is now being forced to rethink its strategy, from customer service to public relations, in a market that's key to Chief Executive Officer Elon Musk's long-term ambitions. Photographer: Qilai Shen/Bloomberg 
Read more on Tesla’s plans to lock in supply as battery demand booms
Nickel is a key component in lithium-ion batteries, used in electric vehicles. It packs more energy into batteries and allows producers to reduce use of cobalt, which is more expensive and has a less transparent supply chain.
Telsa has struck a string of deals with mining companies for the commodities it needs to make batteries, including cobalt pacts with Glencore Plc and supporting a nickel venture in New Caledonia.
For BHP, it marks a turnaround for the company’s Nickel West business. The company unsuccessfully tried to sell the unit in 2014 and has since pivoted it to serve battery makers, rather than traditional customers such as the stainless steel industry.
Bloomberg originally reported that the two companies were in talks in October.