Mining giant Fortescue Metals Group is cutting hundreds of jobs at its green-technology arm Fortescue Zero as it shifts its manufacturing overseas—marking a major retrenchment in the company’s clean-energy strategy. The move comes as Fortescue pivots production to China and Germany while scaling back its plans to build renewable batteries in-house for its mining truck fleet.
Fortescue is reportedly planning to let go of at least 200 employees from its Fortescue Zero division—out of some 1,100 staff globally—with the bulk of the job losses expected in the UK and a smaller number in Australia. The UK base, in Oxfordshire, was originally intended to build the battery systems for the company’s ambitious plan to electrify its diesel-powered mining trucks by 2030. Instead, the company announced that most manufacturing will now take place in China and Germany, citing cost and speed advantages.
From in-house manufacturing to R&D hub
Fortescue’s founder Andrew Forrest told The Telegraph that “it’s senseless to compete (with the Chinese)”, signalling the company’s decision to exit UK-based mass manufacturing of key battery components. While the Oxfordshire site will remain, it will pivot from full production to research and development of battery and power-system designs. The company’s growth and energy chief, Gus Pichot, said the shift is designed to keep Fortescue competitive by focusing on innovation rather than manufacturing.
Context – Green-hydrogen projects and earlier cuts
This latest job-cull follows several earlier setbacks in Fortescue’s green ambitions. In July the company cancelled its two most advanced green-hydrogen projects—the Arizona hydrogen project in the U.S. and the PEM50 project in Gladstone, Australia—resulting in a write-down of approximately US $150 million. In 2024, Fortescue also cut around 700 jobs globally as part of a restructure of its metals and energy divisions. These moves reflect a broader industry shift away from grandiose green-hydrogen targets and in-house manufacturing, as companies face pressure to scale, reduce costs and deliver results.
What it means for Fortescue’s mining decarbonisation plan
Despite the restructuring, Fortescue remains committed to converting its diesel haul-truck fleet to electric by the end of 2030 — an ambitious target ahead of many of its mining-industry peers. The decision to offshore manufacturing may reduce costs and accelerate deployment of components, but it also signals a major change in how the company delivers on its decarbonisation roadmap. The re-focus on R&D may help future innovation, yet the job cuts and loss of domestic manufacturing raise questions about the scale and timeline of the transformation.
Impact and next steps
For affected staff in the UK and Australia, transitions are underway as Fortescue pledges “compassion, respect and support” for those impacted. Fortescue Zero’s revenue model will shift from large-scale manufacturing to consulting, external partnerships and technology services — including work for automotive clients such as Jaguar and Land Rover. The company’s next challenge will be to maintain investor trust, hit its electrification targets and adapt to global supply-chain realities — all while fulfilling its broader “Real Zero” ambition of zero emissions by 2030.
