Fortescue Metals Group, led by Andrew Forrest, is set to reduce its workforce by several hundred positions in the UK and Australia. This decision follows the company’s shift of manufacturing activities for electric vehicles (EVs) and components to China. The affected jobs primarily involve the production of motors and powertrains for the company’s planned fleet of electric haul trucks.
The job cuts will impact Fortescue Zero, the company’s dedicated division for green technology. This move aligns with Fortescue’s strategy to meet its ambitious goal of achieving “real zero” emissions by 2030. This target entails eliminating the use of gas and diesel in its extensive operations in Pilbara, Australia. To achieve this, Fortescue plans to deploy up to 400 electric haul trucks, each capable of carrying 240 tonnes of ore.
Manufacturing Transition and Partnerships
Recently, Fortescue announced that half of these trucks will be manufactured by XCMG, a Chinese company, while the first 20 electric motors and powertrains will be supplied by Liebherr. The remaining trucks will be produced by another manufacturer in China. Gus Pichot, Fortescue’s head of growth and energy, emphasized that Fortescue Zero will concentrate on research and development instead of manufacturing. This approach is part of the company’s strategy to innovate and decarbonize its operations by 2030.
“In 2022, when we committed US$6.2 billion to Real Zero, there were few capable of delivering solutions at the scale required,” Pichot stated. He highlighted the rapid advancements in technology and an increase in market capabilities that now allow others to support Fortescue’s ambitious goals.
Job losses primarily will occur in the UK, which has raised concerns among affected employees. Pichot acknowledged the difficulty of this decision and pledged that the company will manage the transition with “compassion, respect and support.”
Strategic Partnerships for Renewable Energy
Beyond job cuts, Fortescue has forged important partnerships with various Chinese manufacturers. The company has signed agreements with BYD for battery storage solutions and Envision for wind turbines to be utilized in its major wind project in Pilbara. Additionally, Longi has been contracted for solar PV panels that will power various solar initiatives at the company’s mining sites.
The wind project will also incorporate innovative “self-lifting” turbines developed by Nabrawind, a Spanish technology firm acquired by Fortescue. This strategic move aims to reduce construction costs for the planned wind projects, with the first expected to commence construction in 2026.
As Fortescue shifts its operational focus, the implications for the workforce and the broader industry will continue to unfold. The company’s commitment to renewable energy and technological innovation remains a critical part of its strategy as it navigates these changes.
