Fortescue Metals will acquire UK-based Williams Advanced Engineering from private equity firm EMK Capital and Williams Grand Prix Engineering.
The deal aims to help the iron ore producer reach its goal of being carbon neutral by 2030.
“This announcement is the key to unlocking the formula to phase out fossil fuel-powered machines and replace them with zero-carbon technology,” Fortescue Founder and Chairman Andrew Forrest said in a statement.
Mr Forrest, who has an estimated net worth of more than $18bn (£13.3bn), is known for investing in sustainable energy projects.
As part of the deal, Oxfordshire-based Williams Advanced Engineering (WAE) will be integrated into Fortescue’s clean energy unit.
The Perth-based miner said it plans to use WAE’s battery technology to power its freight trains, heavy industrial equipment and haul trucks.
Fortescue has been developing a prototype battery for intensive industrial use since the beginning of last year.
Over the next decade, Mr. Forrest aims to transform the world’s fourth-largest producer of iron ore into one of the world’s leading producers of clean energy.
WAE, which bills itself as “a world-leading technology and engineering company”, was set up in 2010 by Grand Prix team Williams to develop low-carbon technology for vehicles.
Private equity firm EMK Capital acquired a majority stake in the company just over two years ago.
Electric F1 racing is ‘simply not possible’
The move comes after outgoing Federation Internationale de l’Automobile (FIA) President Jean Todt told the BBC that it would not be possible for the sport to go electric for decades, saying: “It’s just not possible.”
“In Formula 1, a race distance is around 200 miles (305 km). Without recharging, with the performance of cars, electricity will not allow this,” he added.
“Maybe in 20 years, 30 years, I don’t know. But right now it would just be impossible.”
Separately last week, a company planning mass production of electric car batteries in the UK secured government funding for its factory project in Northumberland.
Britishvolt announced plans for the so-called gigafactory in Cambois two years ago, saying it would create 3,000 jobs.
the government has committed around £100m through its Automotive Transformation Fund.
Britishvolt also announced backing from investors Tritax and Abrn, which is expected to unlock around £1.7 billion in private funding.