BHP, Prime Planet Energy & Solutions and Toyota Tsusho Corporation have entered into a memorandum of understanding aimed at creating a Green Electric Vehicle Ecosystem.

They plan to work together to reduce the carbon intensity attached to the materials needed for battery materials.

It starts off with the supply of nickel sulphate from BHP Nickel West's recently opened 100,000 tonne per annum production plant in Kwinana.

BHP Nickel West asset president Jessica Farrell said BHP had carefully considered the carbon intensity of the nickel products it was making.

"We have invested in our Nickel West facilities and power agreements so that we can now deliver some of the world's most sustainable and lowest carbon emissions nickel to customers," she said.

Farrell said 50% of the electricity for the Nickel West refinery would come from the Merredin solar farm and a solar power facility was being built in the Goldfields to power its mines and processing facilities there.

Some of the nickel sulphate from Nickel West Kwinana will go to PPES. 

PPES is one of Japan's leading lithium-ion battery producers and a joint venture between Toyota Motor Corporation and Panasonic Corporation.

TTC is a general trading company that is part of the Toyota group.

The nickel sulphate from BHP's Nickel West facility will let PPES develop lower carbon batteries that will be supplied to EV manufacturers including Toyota.

BHP is also selling some of its nickel sulphate to Tesla.

Toyota Motor Corporation Australia and Nickel West will also collaborate on EV supply on the back of a successful EV trial in December.

In the MoU the parties have agreed to look for ways to make the Japanese battery supply chain more sustainable by lowering carbon emission in battery value chains.

The parties also intend to find ways to implement standards for end-to-end raw materials traceability, ethical sourcing and human rights reporting.

They will also explore the possibility of recycling battery scrap and used batteries at Nickel West for further processing and production of nickel bearing products.

BHP chief commercial officer Vandita Pant said creating a green EV ecosystem could make a real difference to the battery supply chain.

"Together with PPES and TTC we are taking the next step in creating a more sustainable, transparent industry and one that is working collectively to lift standards and reduce emissions," he said.

"It starts with the raw material and we are delighted to supply PPES with nickel sulphate in this partnership where we will work together, with TTC, to create long-term success and sustainability."

PPES president and CEO Hiroaki Koda said the parties would work towards optimising the overlapping value chains to be more competitive and to continuously improve efficiency in their related operations.

"To make this happen, we would like to introduce the Kaizen concept moving forward, and together with reducing the carbon footprint in operations such as through electric mining vehicles," he said.

"Our partnership is quite unique and advanced, as we could achieve both competitiveness and green business while securing a win-win relationship."

Kaizen is the concept of continuous improvement.

TTC chief operating officer for metals division Masaharu Katayama said the MoU parties would establish a strong partnership among the parties to cope with the demand to realise carbon neutrality in due time.

"This partnership has great potential to secure competitive raw materials for the EV value chains as well as to create battery material recycling loops, which is crucial for EV development in the future," he said.