The mining firm BHP has signed an agreement with Chinese automotive think tank, Automotive Data of China Co Ltd to support its research on the future electrification of transport in China.

The two-year partnership will focus on key drivers for the development of energy saving and new energy vehicles in China, including the manufacturing value chain, efficiency, the policy environment and the long range outlook for electrification.

The outcomes and insights identified will be shared with companies across the value chain in the next two years, BHP said in a press release.

"As China's electric car revolution continues to unfold, BHP is excited to be supporting ADC's cutting edge research into this mega-trend," said Huw McKay, BHP's vice-president for market analysis and economics.

"We are confident about the outlook for EVs in China, with a world-leading policy-manufacturing-infrastructure-consumer ecosystem in place to support rapid adoption. As one of the major global suppliers of nickel, BHP is well-positioned to help EVs thrive in the world's largest auto market."

Nickel makes a vital contribution to the lithium-ion batteries that power electric vehicles, and Chinese demand for high-quality nickel sulphate is expected to surge as the trend towards EVs accelerates further. BHP is investing in expanding its nickel operations and exploration activities as global demand is expected to grow.

Feng Yi, general manager of ADC, said energy saving and new energy vehicles continue to be a priority for the strategic development of the Chinese automotive industry over the next few years, playing a key role in achieving carbon neutrality in the sector.