Fortescue Metals Group will acquire a UK-based engineering firm connected to late F1 team owner Frank Williams in a bid to bring race-bred battery technology to its iron ore fleet.
Fortescue Metals Group will acquire a UK-based engineering firm connected to late F1 team owner Frank Williams in a bid to bring race-bred battery technology to its iron ore fleet.
The miner told the market this morning it would spend £GBP164 million ($A310 million) on acquiring Williams Advanced Engineering from private equity firm EMK Capital and Williams Grand Prix Engineering.
Williams Advanced Engineering (WAE) was born out of UK racing team Williams F1 in 2010, which was founded by businessman Frank Williams in 1977.
Fortescue plans to integrate the firm’s work in high battery performance systems and electrification with non-executive chairman Andrew Forrest's energy business, Fortescue Future Industries, to develop battery electric solutions for FMG’s rail, mobile haul fleet and other heavy mining equipment.
The companies initially came together to work on a prototype battery system to power an electric mining haul truck with a broader view of cutting diesel from its mobile haul fleet back in March 2021.
FMG estimated about a quarter of its emissions stemmed from haulage operations at the time.
Mr Forrest said the acquisition marked a historic moment for his company.
“This is the race of our lifetimes – the race to save the planet from cooking,” he said in a statement.
“The speed at which we move matters.
“Together FFI and WAE will work to decarbonise Fortescue – with the aim of achieving that faster and more effectively than anyone else in the world.”
FFI chief executive Julie Shuttleworth said WAE joining the Fortescue family would allow investment into new technologies and commercialising electrification products in new markets.
“It is also an opportunity to continue to grow the Williams’ family vision of creating cutting-edge technology operating at the forefront of innovation in engineering and business,” Ms Shuttleworth said.
First project on the agenda is a battery electric train concept, with further details on the project tipped for the coming months.
Developments in this area have gained pace across the sector of late, with industry fellows BHP, Rio Tinto and Roy Hill also signaling moves to decarbonise fleets, all announcing trial runs and acquisitions for electric locomotives at their respective iron ore operations in the state in recent months.
The buy is set to be completed by the end of March pending customary conditions including UK foreign investment approval.
Fortescue Metals Group shares are down 1.62 per cent to trade at $20.60.
