Fortescue Metals Group Ltd. (FMG), the Australian iron ore giant and the world's fourth largest iron ore producer, has agreed to buy (WAE), the Williams advanced engineering company founded by Williams F1 (Williams Formula 1) team, for $223 million to acquire battery technology for mining trucks.
WAE will be integrated into Fortescue Future Industries (FFI), FMG's clean energy subsidiary. Since early 2021, WAE has been working with the Australian miner on a battery prototype to power electric mining transport trucks and is developing an electric train project.
The acquisition "provides key technologies and expertise in high-performance battery systems and electrification that will enable Fortescue to accelerate and support decarbonization in its mining operations and create an important new business growth opportunity," the company said in a statement.
WAE was founded by Williams in 2010 to develop low-carbon engineering technology for the transportation industry. The company was sold to private equity firm EMK Capital LLP in 2019.
FMG is the third largest iron ore producer in Australia and the fourth largest iron ore producer in the world. Andrew Forrest (Andrew Forrest), the company's founder and chairman, hopes to transform the company into one of the world's largest clean energy producers over the next decade. He has been looking for investment opportunities in hydrogen and renewable energy around the world.
In November, FFI expanded its clean energy plans again, announcing that it would build 18 clean energy projects in Papua New Guinea to produce green hydrogen and ammonia, following the announcement that it would spend A $1 billion on a hydrogen reduction plant in Queensland.
In December, FFI signed a new agreement to explore the green hydrogen project in Indonesia. According to the agreement, FFI will develop a plant facility with a minimum production of 600000 tons of green hydrogen per year.
