Caterpillar, BHP Partner On Zero Emission Mining Trucks: What Investors Should Know

Two $100 billion companies announced a partnership to bring zero-emission mining trucks to the market.

What Happened: BHP Group Ltd (NYSE: BHP) and Caterpillar Inc. (NYSE: CAT) announced a partnership to design and implement zero-emission mining trucks to help with future initiatives.

“We are pleased to announce our partnership with Caterpillar Inc to develop and deploy zero-emissions mining trucks at BHP,” BHP Chief Commercial Officer Vandita Pant said.

BHP has a long-term goal of achieving net-zero emissions by the year 2050.

Caterpillar will design and build the vehicles and BHP will get early access to the equipment being developed by the company under the partnership. The two companies will work together on the process, technology and infrastructure, according to the release.

The partnership comes after a 12-month collaboration between the two companies to explore developing zero-emission mining trucks.

“We’re excited to be part of a valued customer’s plan to reach aspirational goals to build a better world,” Caterpillar said in a release.

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Why It’s Important: The partnership comes from two of the leading companies in their respective fields and could be a win-win in the push for zero-emission vehicles.

“Another critical element of the collaboration will be to extend the parties’ efforts to support a more inclusive mining industry,” BHP said in a press release.

The company plans to have input into the Caterpillar design process and will help develop machines that can be operated and serviced by a “broader range of the workforce.” BHP has confidence that the new trucks could be safer and easier to operate.

“Climate change is a critical global challenge and we know that partnering with others will help accelerate the transition to a low carbon future,” Pant said.

Caterpillar highlighted the partnership between the two companies as a push that could speed up the deployment of zero-emission solutions.

“Mining trucks are the lifeblood of mine sites around the world — which makes them a key component in plans to achieve sustainability and greenhouse gas emissions goals,” Caterpillar said in a release.

Photo by Omid Roshan on Unsplash