BHP and Rio Tinto Power Up Australia’s First Battery-Electric Haul Trucks in Major Decarbonisation Push

Introduction to Battery-Electric Haul Trucks

Australia’s first battery-electric haul trucks have arrived in the Pilbara, marking a significant milestone in the mining industry’s push to eliminate diesel from iron ore operations. BHP (ASX: BHP) and Rio Tinto (ASX: RIO) are collaborating with Caterpillar to trial two Cat 793 XE Early Learner trucks at BHP’s Jimblebar mine, testing whether zero-emissions technology can match diesel fleet productivity in one of the world’s harshest mining environments.
The industry-first partnership reflects a shared recognition that no single company can solve mining’s biggest emissions challenge alone. For investors, this collaboration signals that Australia’s iron ore giants are serious about decarbonisation, though mass deployment remains years away.

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Why Electric Trucks Could Transform Mining Decarbonisation

The diesel problem in the Pilbara is bigger than most investors realise. Diesel makes up about 70 per cent of the total carbon emissions from Rio Tinto’s Pilbara iron ore operations. For BHP, about 40 per cent of its operational greenhouse gas emissions come from using diesel fuel.

In our view, these figures explain why both miners see battery-electric technology as essential, not optional. Diesel isn’t just an environmental headache; it’s a massive operating cost. Successfully eliminating it could meaningfully improve margins over time while helping both companies meet their net-zero targets.

As BHP’s Tim Day explained, moving away from diesel is more than just changing the fuel; it means rethinking how mines work. New charging systems, workforce training, and operational changes will all be needed to make the shift successful. In short, electric trucks could transform mining by reducing emissions, lowering costs, and reshaping how operations are run.

BHP and Rio Tinto Take Different Approaches

While collaborating on the Caterpillar trials, the two miners are hedging their bets:

• BHP is leading the Cat truck trials at Jimblebar and expects Australia’s first battery-electric locomotives to arrive in Port Hedland soon
• Rio Tinto will lead separate Komatsu truck trials from 2026 and is also testing biofuels as a bridge solution

Rio Tinto’s Andrew Wilson acknowledged that decarbonising the fleet across 18 Pilbara mines is a significant challenge. We think this is an honest assessment. The scale is enormous, and no single technology has yet proven it can do the job.
Following the joint trial, BHP and Rio Tinto will independently determine progress towards scaled trials. This suggests both are keeping options open rather than betting everything on one solution.

The Investor’s Takeaway

Both BHP and Rio Tinto are trading near their 52‑week highs, with BHP around A$44.50 and Rio Tinto touching A$140. The market is clearly optimistic about the future of these miners, but investors should be cautious about expecting quick wins from electrification.

BHP now expects to adopt diesel displacement technologies at scale post FY2030, later than originally hoped. This signals that the technology still requires significant development before it is commercially viable. As a result, meaningful emissions reductions from electric trucks are unlikely to occur this decade.

What to watch:

• Trial results showing productivity matches diesel trucks
• Infrastructure costs and charging requirements
• Progress towards larger-scale deployments

The risk is that battery-electric technology may not prove viable at a mining scale for several more years. But if it works, the long-term benefits could be substantial: lower operating costs, better ESG credentials, and a genuine path to net zero by 2050.