Mining Companies are Using Cooperative Agreements and Strategic Acquisitions to Gain Access to Advanced Technologies

As the importance of technological innovation grows in the global mining sector – driven by the intensification of both competition and workforce issues, and rising concerns about the environmental impact of mining – manufacturers of equipment are increasingly turning to cooperative agreements and strategic acquisitions to access new technologies. Because developing technologies and incorporating into the next generation of machines is both extremely costly and time-consuming, suppliers of mining equipment have increasingly partnered with competitors, technology firms and start-ups, and companies in other industries (e.g., batteries). Additionally, manufacturers of equipment often only have limited experience with some state-of-the-art technologies.

In mid-November 2023, Komatsu and NSS Canada signed a memorandum of understanding “that will see Komatsu use and supply NSS Canada’s current versions of MOSS and MOSS AR for use with Komatsu drills, and the drilling retrofits business with support from the NSS Canada team.” According to NSS Canada, the MOSS system “integrates mine design specifications and drawings when generating a drill plan and provides real-time information to miners, engineers and geologists”. The company offers the standards MOSS system as well as a version that features augmented reality capabilities. With this cooperative agreement, Komatsu’s equipment will be able to offer improved blasthole drilling to customers, giving it a competitive advantage.

Caterpillar and Albemarle announced a cooperative agreement in September 2023. The two companies have partnered together to develop solutions to support the full circular battery value chain and sustainable mining operations. Caterpillar will also support Albemarle's efforts to establish Kings Mountain, N.C. as the first-ever zero-emissions lithium mine site in North America. Long term, the two companies plan to explore opportunities to jointly develop battery cell technologies and recycling techniques.

Epiroc used strategic acquisitions intensively between 2022 and 2023 to support its research and development activities and expand its product offering. There have been at least 10 acquisitions since the start of 2022. Most of the companies purchased by Epiroc produce specialty mining equipment, make specialized mining machinery, or are experts in electrification.

Top manufacturers of mining equipment will continue to use cooperative agreements and strategic acquisitions to access new technologies going forward, reflecting their immense financial resources. A handful of large and mid-sized suppliers will also increasingly use these strategies going forward as they face intensifying competition and evolving operator preferences.

For more information, see Freedonia Group’s Global Mining Equipment study.