The world’s largest listed mining company, BHP, has announced preliminary deals with two of China’s largest battery manufacturers—CATL and BYD—to explore the electrification of its fleet of heavy mining equipment and transport operations, including locomotives, across the world.
The companies will explore developing batteries suitable for mining, including rapid charging infrastructure, as well push to better understand energy storage and battery recycling options.
BHP said in a statement that the collaboration will help advance moves towards developing a circular economy, and more sustainable value chains within the mining sector.
If successful, the collaboration offers the potential to cut BHP’s emissions.
The company aims to achieve net zero by 2050 and to reduce its greenhouse gas emissions by at least 30 percent by FY2030 (from an FY2020 baseline). For FY2024, its emissions were 32 percent lower against that baseline.
It first achieved 100 percent renewable electricity use at its Chilean operations in FY2023, and is collaborating with Rio Tinto to share outcomes of the first stage of its battery-electric haul truck trials at mine sites in Western Australia’s Pilbara region.
Nevertheless, BHP’s ambitious targets are nothing compared to those of fellow mining giant Fortescue, which is aiming to reach net zero emissions by 2030 without offsets.
Successfully introducing battery power to heavy mining equipment and locomotives also has the potential to cut BHP’s energy bill, the company says.
“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,” Chief Procurement Officer Rashpal Bhatti said in a statement.
When working in BHP’s maritime operations, Bhatti played a major role curbing emissions by using ships fuelled with liquefied natural gas (LNG) to transport iron ore.
CATL’s head of overseas business, Tan Libin, said his company aims 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.”BHP’s Western Australian operations haul millions of tons of iron ore long distances from mine sites to the coast.
The company’s production guidance for iron ore in the last financial year was 282 to 294 million tonnes, but the miner is expanding its port capacity to 330 million tonnes a year in expectation of exporting more.
After flat demand for a considerable period, the global iron ore market has witnessed a remarkable turnaround in recent weeks, confounding predictions of price stability or even decline.
As of mid-July 2025, prices have climbed approximately 4 percent over the past week, reaching US$99.50 per tonne in Singapore markets—the strongest five-day performance since January 2025.
As a result, BHP Group shares have appreciated between 9 and 17 percent.
