Partnership with Liebherr to supply green mining haul trucks incorporating Fortescue’s proprietary-owned zero emission power system

Fortescue Metals Group Ltd
(Fortescue, ASX: FMG) today announced a partnership with multi-national
equipment manufacturer Liebherr for the development and supply of green mining
haul trucks for integration with the zero emission power system technologies
being developed by Fortescue Future Industries (FFI) and Williams Advanced
Engineering (WAE). This is a major step towards transitioning Fortescue’s
diesel mining fleet to a green mining fleet before 2030 and accelerates the
opportunity to commercialise zero emission power system technologies in heavy
industry applications.

The agreement advances the decarbonisation of Fortescue’s
mobile fleet through this partnership with one of the world’s leading
manufacturers of mining equipment. Utilising WAE’s unique proprietary
technology and expertise in high-performance battery systems, the partnership
secures a pathway for Fortescue to become a zero emission power system supplier
to a tier one original equipment manufacturer and accelerates technology

Under the partnership, Fortescue will purchase a fleet of
120 haul trucks from Liebherr, with delivery aligned to its fleet replacement
and sustaining capital expenditure forecast. The commitment represents
approximately 45 per cent of the current haul truck fleet at Fortescue’s
operations. Truck haulage consumed approximately 200 million litres of diesel
in FY21 and accounted for 26 per cent of Fortescue’s Scope 1 emissions.

The phased supply of haul trucks is anticipated to
commence following a two year joint development period enabling the development
and integration of Fortescue’s proprietary-owned power system into Liebherr’s
proprietary-owned base truck. Liebherr will supply mining haul trucks to
Fortescue in both battery electric truck and fuel cell electric truck
configurations, in accordance with Fortescue’s requirements.

The first of the zero emission haul units will be fully
operational within Fortescue mine sites by 2025, with the further aim of having
the units available for commercial sale from that time.

Fortescue Chief Executive Officer, Elizabeth Gaines said,
“The signing of this contract with Liebherr marks a significant step in the
delivery of our industry leading decarbonisation target to achieve net zero
Scope 1 and 2 emissions by 2030.

“We strongly believe that enhancing technology is key to
addressing climate change and we are investing in renewables and new
decarbonisation technologies to transform our mining fleet to run on green
renewable energy.

“This agreement builds on the considerable value already
created through Fortescue’s acquisition of WAE and demonstrates the significant
long term opportunity for Fortescue to commercialise green power system
technologies to the broader heavy duty mobility market.

“We look forward to working with Liebherr and WAE to
develop and deploy some of the world’s first zero emission large mining haul
trucks in our operations, while also establishing an important new business
growth opportunity for Fortescue as we diversify to become an integrated green
energy and resources company.”

President of the Administrative Board of
Liebherr-International, Dr. h. c. Willi Liebherr said, “This partnership with
Fortescue will draw from Liebherr’s industry leading equipment and technology,
as well as Fortescue Future Industries’ expertise in green technologies, to
deliver zero emission mining.”

Fortescue Chairman and Founder Dr Andrew Forrest said,
“We are on a march to achieve net zero by 2030, strengthening the economics of
our business and making our products acceptable to a zero pollution future.
Every day our Fortescue and FFI family take forward the technology, hard work,
and willpower of going green, the world mining industry takes one step closer
to being the first globally leading industry to go fully green.

“I hope today’s announcement would also bring a smile to
the face of Sir Frank Williams, the visionary that founded Williams F1 and
Williams Advanced Engineering. Frank lived to challenge the status quo.”

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