First Mode, whose engineering and R&D hub is in Seattle, has been a trailblazer in advancing decarbonisation solutions for large mining trucks in recent years. This has included the development of the nuGen™ Haulage Solution for Anglo American, culminating in the successful proof-of-concept converted Komatsu 930E (truck DT74) that completed a year of operations at the Mogalakwena platinum mine in South Africa in May 2023. The Fuel Cell Electric Vehicle (FCEV) was the first at this scale to be successfully tested intensively.
The company ended 2022 with a $200 million investment from Anglo American and a binding agreement to combine Anglo American’s nuGen™ zero emission haulage solution with First Mode. Additionally, it announced an order for approximately 400 nuGen™ systems over the following 15 years. Upon the transaction’s close on January 5, 2023, Julian Soles took the helm as First Mode CEO and the company opened a new office in London.
From that point until now, however, there have been some significant changes. Firstly, there was a realisation that the establishment of a widespread hydrogen infrastructure in mining to support hydrogen-battery trucks was going to take longer than expected – and at the same time most of the major miners were coming out in favour of a long term goal of phasing in new battery electric trucks and also pursuing options for conversions of existing trucks to battery or diesel-battery hybrids.
First Mode therefore pivoted to offering an innovative trio of electrified retrofit products – hydrogen-battery was one of these (now called Hydrogen Fuel Cell EV Retrofit) but the main focus now became its Hybrid Electric Vehicle (HEV) Retrofit – which adds a First Mode regenerative battery to the customer’s existing diesel-powered vehicle to immediately reduce its carbon emissions by up to 30%. The third option is the Battery Electric Vehicle (BEV) Retrofit which involves conversion into a fully electrified powertrain solution by removing the diesel engine entirely.
The HEV Retrofit saw successful testing earlier this year at a new proving grounds for ultra-class mining haul trucks in Washington state just 90-minutes south of Seattle in Centralia.
In April, First Mode announced a strategic alliance with Mitsui & Co Ltd, the international trading company and investment group with extensive interests in the mining industry, to accelerate heavy industry’s adoption of low-carbon and zero-emissions product solutions at scale.
Globally, First Mode has also been making other investments along the way – including but not limited to a new CleanTech Manufacturing Facility in Seattle’s SoDo District opened in February 2024, plus a major office and R&D lab in Perth, Western Australia.
Anglo American was still the major backer and investor in First Mode, and it has been under significant pressure to strengthen its position following its rejection of three takeover proposals from BHP this year. In May 2024, Anglo American announced a plan to unlock the significant value inherent in its portfolio through the acceleration of its strategy and delivery of consistently stronger shareholder returns. Integral to achieving those objectives are the demerger of Anglo American’s 78.56% stake in Anglo American Platinum and the sale of key metcoal assets in Australia to Peabody. But a number of other ventures and assets are also affected – including the Woodsmith polyhalite mine in the UK which has seen a major reduction in activity including a slowdown in tunnelling and a pause in shaft sinking.
Recently, Anglo American has also decided to conclude its funding of First Mode as part of its capital prioritisation programme. In a statement, Julian Soles told IM: “As a result, First Mode engaged financial and legal advisors to begin the process of evaluating strategic alternatives, including the potential sale of the business to a new owner who could continue supporting the company’s world-class decarbonisation innovations. The company received several Expressions of Interest and has undertaken a thorough due diligence process within a compressed timeline. The company continues to engage with one bidder who has expressed an interest in a specific part of the technology and teams. In the meantime, with the support of Anglo American, the First Mode Board of Directors filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on 15 December 2024 through a bankruptcy court-supervised sale process.”
Whatever the resolution is for First Mode, it has undoubtedly played a huge role in helping the mining industry get to where it is today in being part of a collaborative effort to find solutions to the Scope 1 emissions problem of large diesel mining truck fleets. This was reflected in its acceptance as a participant of ICMM’s Innovation for Cleaner, Safer Vehicles (ICSV) initiative in September.