BHP signs deal with China's CATL despite US Pentagon blacklist

Herald Sun

6 days ago

Mining heavyweight BHP has struck an agreement with two of China's most powerful battery manufacturers, including one currently blacklisted by the United States Department of Defence.
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.
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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.
Originally published as BHP turns to China to kill diesel