Australia’s Fortescue Secures $2.8 Billion Green Equipment Partnership with Liebherr

Fortescue announced on Wednesday the signing of a $2.8 billion collaboration with Liebherr, a German-Swiss equipment manufacturer, aimed at developing one of the world’s largest zero-emission mining fleets.

Initially, the two companies agreed in 2022 to work together on green technology trucks for transporting iron ore from Fortescue’s mines. Their new partnership will expand the mining fleet supplied by Liebherr to 475 trucks, up from the original 120.

As the fourth-largest iron ore miner globally, Fortescue plans to acquire 360 autonomous battery-electric trucks, 55 electric excavators, and 60 battery-powered dozers. This investment will replace approximately two-thirds of its existing mining fleet.

In fiscal year 2024, Fortescue’s mining operations consumed about 450 million liters of diesel, contributing to 51% of its scope 1 carbon emissions.

The company has been investigating various methods to produce green iron, which showcases a reduced carbon footprint, while also venturing into hydrogen production from renewable resources.

“This marks a significant advancement toward our 2030 Real Zero target—eliminating emissions from our iron ore operations in Australia by the decade’s end. The world urgently needs Real Zero; it cannot afford to wait,” stated Fortescue Executive Chairman Andrew Forrest.