Fortescue Seals US$2.8 Billion Deal with Liebherr to Develop Zero-emission Mining Fleet

Fortescue (ASX:FMG,OTCQX:FSUMF) said on Wednesday (September 25) that it has entered into a US$2.8 billion agreement with German-Swiss manufacturer Liebherr to develop zero-emission mining equipment.

The partnership will result in the deployment of 475 Liebherr machines, including 360 battery-electric trucks, 55 electric excavators and 60 battery-powered dozers, to Fortescue’s mining operations in Western Australia.

Liebherr and Fortescue will also develop a fully autonomous battery-electric haulage system for large-scale mining, integrating the latter company's Zero's battery technology into the equipment.

The companies recently unveiled the jointly developed battery-electric T 264 truck during MINExpo in Las Vegas, Nevada; the event is the world’s largest gathering of mining equipment manufacturers.

The T 264 trucks are designed with a scalable battery-electric system that can be retrofitted into existing Liebherr trucks. This includes an energy management system that coordinates truck charging needs to ensure efficiency.

Fortescue Chairman Dr. Andrew Forrest and Liebherr’s Dr. Willi Liebherr attended the MINExpo event to discuss their companies' ambitions to achieve zero-emission mining by 2030.

Forrest emphasised the need for the mining industry to adopt greener solutions quickly, stating that "the world needs Real Zero now" and urging other mining operators to follow suit. “The solutions are there, and the missing ingredient is leadership. We can together be the trailblazers who forge the world's move away from fossil fuels,” he added.

Fortescue has developed a fast-charging system to support the battery-electric trucks, allowing the vehicles to recharge in 30 minutes. It will work with Liebherr to develop the 60 battery-powered dozers and 55 electric excavators.

The T 264 trucks will undergo validation tests beginning in late 2025, with full deployment expected by early 2026. Four trucks are currently being tested at Fortescue’s site, with the first operational trucks set to be introduced in 2025.

The equipment deal, the largest in Liebherr’s 75 year history, is expected to create one of the world's largest zero-emission mining fleets. Both companies expect their joint zero-emission mining ecosystem to be available to other operators within the next few years, positioning the partnership as a driving force for decarbonisation in heavy industry.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.