BYD, CATL partner with BHP to electrify mining operations

• BYD and CATL have each signed MOUs with BHP to advance the mining giant’s decarbonization efforts.
• BHP aims to achieve net-zero operational greenhouse gas emissions by 2050.

Chinese battery giants BYD (HKG: 1211, OTCMKTS: BYDDY) and CATL (SHE: 300750) have partnered with BHP, an Australian mining giant headquartered in Melbourne, to accelerate the decarbonization of its mining operations.

BYD Group’s wholly-owned subsidiary FinDreams Battery recently signed a memorandum of understanding (MOU) with BHP, according to a statement released today.

The collaboration aims to further advance BHP’s decarbonization efforts in its mining operations and pave the way for a more sustainable future for the entire resources industry, according to FinDreams’ statement.

The two parties will explore battery system solutions and fast-charging infrastructure suitable for heavy-duty mining equipment and locomotives.

They will also explore the use of BYD’s commercial vehicles and light-duty vehicles at BHP’s mines to advance the development of diesel displacement for mining transportation.

This aligns closely with BHP’s long-term vision of achieving net-zero greenhouse gas emissions from its operations by 2050, according to the statement.

Separately, CATL said in its statement that it recently signed an MOU with BHP to collaborate in areas such as mining equipment electrification, fast-charging infrastructure development, energy storage, and battery recycling.

CATL also mentioned that it will jointly research and develop battery solutions for heavy-duty mining equipment and locomotives, as well as fast-charging infrastructure, and explore the application scenarios of energy storage systems across BHP’s global mines.

In the future, the two parties will also optimize battery recycling processes, promote the development of a circular economy, and establish a more sustainable mining industry value chain, CATL said.

This collaboration will better demonstrate how advanced battery technologies can help the mining industry achieve decarbonization in operations, logistics, and product delivery, said Tan Libin, CATL’s chief customer officer and co-president of the market system.

CATL and BYD are the world’s two largest power battery manufacturers, with global market shares of 38.1 percent and 17.4 percent from January to May, respectively, according to data from South Korean market research firm SNE Research.

In China, CATL’s power battery installation volume in June reached 25.41 GWh, accounting for a 43.67 percent market share and ranking first, according to data from the China Automotive Battery Innovation Alliance (CABIA).

BYD’s battery installations in June totaled 12.49 GWh, accounting for a 21.47 percent market share, ranking second.