Cummins Acquires First Mode: Expanding into Hydrogen-Battery Powertrain Solutions
Key Ideas
- Cummins acquires First Mode, including its hydrogen and battery powertrain solutions, to enhance decarbonisation efforts in mining applications.
- The acquisition involves obtaining First Mode's IP portfolio and commercial operations, showcasing a strategic move towards expanding technological capabilities.
- Cummins aims to drive down costs, adapt to evolving technologies, and provide scalable solutions for miners seeking to decarbonise their operations.
- Despite restructuring costs in its clean tech business, Cummins remains positive about investments in hydrogen technologies while being selective in fuel cells and other areas.
Cummins, the US engine manufacturer, has acquired mining and rail hydrogen-battery powertrain firm First Mode after Anglo American ceased its funding. The acquisition includes First Mode's IP portfolio, encompassing hydrogen and battery powertrain solutions and hybrid mining and rail products. Cummins will integrate First Mode's operations into its Power Systems industrial segment, maintaining a focus on meeting customer demands through the transition. The move is seen as a strategic endeavor by Cummins to enhance its decarbonisation efforts in mining applications, offering flexibility, cost reduction, and adaptability to evolving technologies for miners. This acquisition aligns with Cummins' commitment to sustainable practices and technological advancements in the mining sector. Despite facing restructuring costs and slowing demand in its clean tech business, Cummins remains optimistic about investing in hydrogen technologies. The company's emphasis on decarbonisation, scalability, and fostering industry partnerships positions it favorably for future growth and innovation in the energy sector.