Sydney, January 15, 2026, 17:12 AEDT — Market closed
Fortescue Ltd (ASX:FMG) shares ended up 0.4% on Thursday after the iron ore miner said it bought U.S. battery controls company Zitara to bolster its Elysia software unit. The stock closed at A$22.75. 1
The purchase keeps Fortescue’s energy-tech pivot in view as investors weigh how much spending the group can carry while its earnings still hinge on iron ore prices.
Australian stocks rose, with miners leading the move, and the S&P/ASX 200 closed 0.5% higher. “Valuation fatigue in banks and strong tailwinds for miners are prompting a rotational positioning into the latter,” said Marc Jocum, senior product and investment strategist at Global X ETFs Australia. 2
Fortescue said the deal, for an undisclosed sum, adds on-site control systems to Elysia’s cloud-based analytics for battery energy storage systems — big batteries that store and release electricity. Elysia managing director Tim Engstrom said the acquisition would bring “real time on‑premises controls” to the battery intelligence business. Fortescue said it is rolling out 4-5 gigawatt-hours of storage capacity in the Pilbara, and plans to deploy the Elysia-Zitara offering there as it targets decarbonising its iron ore operations by 2030. 3
Speaking to Solar Power Portal, Engstrom described the move as “connecting battery intelligence to battery action, from cloud to site”. Zitara co-founder Shyam Srinivasan said the combined platform can respond quickly when something goes wrong: “we can shut down that rack,” he said. 4
Battery storage has become a practical lever for miners trying to replace diesel in remote operations. For Fortescue, it also points to a business beyond the mine gate, selling software and controls to large storage operators.
Iron ore still drives the near-term trade. China’s steel exports hit a record monthly high in December, while iron ore imports for 2025 also set a record, Reuters reported, even as domestic steel demand remains under pressure from a prolonged property downturn. Global iron ore supply is forecast to grow 2.5% in 2026, “piling pressure on prices,” said Bai Xin, an analyst at consultancy Horizon Insights. 5
Elsewhere in the Pilbara, rivals BHP and Rio Tinto said on Thursday they would work up plans to jointly extract up to 200 million metric tons of iron ore from neighbouring sites, leaning on shared infrastructure to extend mine life and cut costs. They expect first ore in the early 2030s, subject to studies and approvals. 6
But the risk case for Fortescue hasn’t changed much. Battery intelligence deals may help at the margin, yet earnings remain tied to the iron ore cycle, and a sharper downturn in steel demand would put costs, dividends and discretionary spending back under the microscope.
The next marker comes on January 22, when Fortescue is due to release its December-quarter production report, followed by half-year results on February 25, according to the company’s calendar. Traders will be looking for updates on shipments, costs and the pace of investment across the energy and technology businesses. 7
