BHP signs deal with China's CATL despite US Pentagon blacklist
The memorandums of understanding (MoU) signed this week will see Chinese battery giants - BYD's battery subsidiary FinDreams, and Contemporary Amperex Technology (CATL), collaborate on electrifying heavy-duty mining equipment, developing fast-charging infrastructure, and advancing battery recycling technologies across BHP mines.
CATL is the largest EV battery supplier in the world, with clients ranging from Tesla, Volkswagen and Toyota.
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Chinese battery manufacturer CATL's domestic car business chief technology officer (CTO) Gao Huang speaks at CATL Tech Day ahead of the Shanghai Auto Show in Shanghai on April 21, 2025. (Photo by WANG Zhao / AFP)
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But in January this year, the Pentagon added CATL to its official blacklist, flagging it as a 'Chinese military company' with links to Beijing's military-industrial complex.
US Representative House Select Committee on China chairman John Moolenaar warned that companies like CATL were a serious threat to the country.
'We cannot allow these loaded guns to threaten our economy and security,' he told CBT news.
The designation, under Section 1260H of the US National Defence Authorisation Act does not act as a ban, but warns American entities from investing in the company due to national security concerns.
BHP did not address the blacklisting in its statement but BHP group procurement officer Rashpal Bhatti said the move is part of its long term strategy to achieve net-zero greenhouse gas emissions from its operations by 2050.
'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,' he said.
MORE: Inside China's total domination of Australia
BHP is moving to transform their haul truck fleets into battery-electric powered machines. Picture: Supplied
CATL head of overseas business Tan Libin said it would collaborate with BHP on a number of areas.
'Together with forward-thinking resources companies like BHP, we aim to demonstrate how advanced battery technologies can decarbonise mining operations, logistics, and product delivery, accelerating a more sustainable, efficient future while creating long-term value and transforming the global resources industry through innovation,' he said.
While the transition to electric mining fleet is a great step forward, experts say it also introduces new safety risks that must be carefully managed.
According to Swinburne University School of Engineering Professor Weixiang Shen said mine sites expose battery systems to 'extremely harsh' conditions, including heat, dust, vibration and humidity, all of which increase the risk of failure.
He said fast charging can cause batteries to overheat rapidly, combined with the risk of internal short circuits or electrical sparks during equipment switching, this can lead to thermal runaway, a dangerous chain reaction that can result in fires or explosions.
Scenic aerial golden hour sunrive over Broken Hill mining city in Far West NSW of Australia. Escape 13 April 2025 Hotlist Photo - iStock
'Mitigating these risks requires the development of purpose-designed battery energy and thermal management systems capable of real-time monitoring, control and cooling as well as explosion-proof enclosures, all tailored to mining environments,' he said.
'Together, these systems provide robust protection against environmental hazards, ensuring the safe and reliable operation of battery-powered equipment in mining applications.'
Professor Shen added that lithium iron phosphate (LFP) batteries, which offer better thermal stability than other chemistries, are currently considered the safest option in high-risk settings like mine sites.
BYD and CATL are currently dominating the global battery market.
According to South Korean research firm SNE Research, CATL and BYD held 38.1 per cent and 17. 4 per cent of global EV battery market share from January to May this year.
In China, CATL accounted for 43.7 per cent of battery installations in June alone.
Currently the company has a market capitalisation of approximately A$263.61 billion.
As of December 2024, CATL also holds nearly 63 per cent market share in the premium electric vehicle market, having supplied nearly 2.22 million cars so far.
Danielle Collis
Journalist and Reporter
Danielle's background spans print, radio and television, she has contributed to outlets such as The Age, ABC, Channel Nine and many more. For more than four years, Danielle has worked as Liz Hayes' producer and investigative journalist on her show 'Under Investigation', covering everything from corporate scandals to Australia's most baffling crime cases. Danielle's covered a range of topics from breaking news, politics, lifestyle and now motoring.
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News.com.au
9 hours ago
- News.com.au
ASX gains on quiet day of trading on Tuesday ahead of crucial CPI data
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Daily Telegraph
10 hours ago
- Daily Telegraph
Viva dives and farewell Sir Michael
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Firetail Resources (ASX:FTL) has further expanded the discovery potential of its newly acquired Excelsior gold project in Nevada, with interpretation of existing data supporting both an extension of the prospective Buster trend to beyond 5km and the existence one lying parallel. Field mapping and sampling also spotted up more undocumented exploration adits, and Firetail managing director Glenn Poole said the active exploration campaign was delivering important information as the company looks towards getting a rig on the ground and testing the project's enormous potential. New World Resources (ASX:NWC) has entered a binding US$6.5m loan facility agreement with Kinterra to continue advancing its Antler copper project towards development in Arizona. The proceeds are marked to meet state bonding requirements, secure key land parcels, and provide general working capital and payment of costs related to Kinterra's takeover. 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Originally published as Lunch Wrap: ASX dips as Viva Energy plunges; RIP Sir Michael Hill, jeweller
News.com.au
11 hours ago
- News.com.au
ASX Resources Quarterly Wrap: Lithium bounce could boost these junior explorers
Electric vehicle sales surge 30% sparking lithium price boost Major lithium miners climb on expectation of rising demand Anson defines maiden Green River Resource in June quarter Burgeoning global electric vehicle sales – up 30% to date according to Canaccord Genuity – have boosted lithium prices on expectations that demand for the battery metal will advance in lockstep. Price reporting agency Fastmarkets had last Tuesday assessed 6% Li2O – the benchmark for the spodumene concentrate mined by WA producers – at US$760/t, a significant gain from the low of US$610/t on June 23, 2025. This is due to rising futures prices in China and improved buying interest from battery makers, as well as the closure of a number of Chinese operations on environmental grounds. Lithium carbonate prices have also risen in the same period from US$8050/t to US$8550/t. This has proved to be a boon for lithium producers with Mineral Resources (ASX:MIN) rising 37% since July 1, 2025, to $29.80 while Pilbara Minerals (ASX:PLS) has put on 23.2% to $1.67 in the same period. Juniors have also gained from the improved lithium sentiment, and here are some companies that have been progressing operations during the June 2025 quarter… Anson Resources (ASX:ASN) During this period, Anson defined maiden JORC resources of 103,000t of contained lithium carbonate equivalent at its Green River project in Utah. The estimate is based on the drilling on the Bosydaba #1 well and could be increased in the near-term through the re-entry of the historical Mt Fuel-Skyline Geyser 1-25 well in the current quarter. Anson has also added 100 strategic placer claims to increase the Green River landholding by 10%. About 28% of these fall within the Area of Influence and will be included in subsequent JORC Mineral Resource estimates upgrades. Further resource upgrades could come from recent swabbing programs returning consistently higher assay values. Other steps taken by the company include entering into a non-binding memorandum of understanding with POSCO Holdings to collaborate on the construction of a direct lithium extraction demonstration plant, and working with the Utah state government to develop a new, lower state royalty rate scaled from 1% to 5% based upon market conditions compared to the previous flat rate of 5%. Delta Lithium (ASX:DLI) During the June 2025 quarter, Delta spun out its Mt Ida gold asset into new ASX-listed company Ballard Mining (ASX:BM1) to focus on its lithium assets. It also expanded the footprint of its Yinnetharra lithium and tantalum project through two transactions – the acquisition of Minerals 260's (ASX:MI6) Aston project and Zeus Resources' (ASX:ZEU) Mortimer Hills project. These have added 1778km2 to Yinnetharra, taking the total land package up to over 3100km2. Both assets have highly prospective tenure, are under-explored and host compelling targets for immediate exploration. Delta has also updated resources at Yinnetharra to 21.9Mt at 1% Li2O and 39.4Mt at 102ppm tantalum. The company has started systematic geochemical sampling and mapping over priority areas with passive seismic surveying to follow this year along with drill testing at Jamesons and adjacent prospects along the Leake Springs meta-sediment package in the following quarter. First Lithium (ASX:FL1) First Lithium continues to work closely with the Mali government to finalise renewals for its Gouna and Faraba permits. Discussions have also indicated the maiden resource will be finalised with results released in the current quarter. The Mali government had earlier this year announced plans to partially lift the suspension of mining permits that had been in place since September 2022 from March 15, 2025. The company has received a letter from the National Director of Geology and Mines in Mali confirming geophysical survey work can continue on both permits while direct meetings have confirmed the requirements for the licence renewal process. Chariot Corporation (ASX:CC9) Meanwhile, Chariot acquired a 66.7% interest in one of the largest hard rock lithium portfolios in Nigeria for US$1.5m in cash and 42 million shares in the company. The assets cover ~254km2 across the Fonlo, Gbugbu, Iganna, and Saki projects in Oyo and Kwara states. These contain a mix of licence types: exploration licences (ELs) for large-scale exploration and small-scale mining leases (SSMLs) over known mineralisation which provide Chariot with an opportunity to investigate fast-track development options. Notably, the Nigerian tenements have historically produced several thousand tonnes of spodumene concentrate for export to Chinese customers between 2021 and 2024, validating both the quality of mineralisation and existence of buyers. Chariot plans to start systematic exploration across the Nigerian portfolio, with initial field programs underway and first drilling targeted for late 2025. Separately, the company is awaiting results from Phase 2 drilling at its Black Mountain lithium project in Wyoming. It is also monitoring developments at neighbouring projects to its Resurgent project in the McDermitt Caldera on the border of Nevada and southern Oregon.
