Sandvik wins record order for battery-electric mining equipment

Rhea-AI Summary

Sandvik (SDVKY) has secured its largest-ever order for battery-electric vehicles (BEVs) from South32 for their Hermosa critical minerals project in Arizona. The order, valued at SEK 750 million, includes both battery-electric and conventional mining equipment such as trucks, loaders, bolters, development drills, and longhole drills.

Deliveries are scheduled from Q4 2026 through 2030, with the majority expected in 2026-2027. The Hermosa project is unique as the only advanced mine development in the US capable of producing two federally designated critical minerals - manganese and zinc. South32 plans to develop it into a multi-decade operation, with first production targeted for 2027.

Positive

• Secured largest-ever BEV order worth SEK 750 million
• Multi-year delivery schedule (2026-2030) provides long-term revenue visibility
• Strategic position in critical minerals mining equipment market

Negative

• Long lead time before revenue recognition (deliveries start Q4 2026)
• Heavy concentration of deliveries in 2026-2027 period may impact production scheduling

News Market Reaction – SDVKY

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+1.44% News Effect

On the day this news was published, SDVKY gained 1.44%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

STOCKHOLM, April 23, 2025 /PRNewswire/ -- Sandvik has received a major order from South32 to supply an underground mining equipment fleet for its greenfield Hermosa critical minerals project in Arizona, US. The majority of the order consists of battery-electric vehicles (BEVs) and is Sandvik's largest ever for BEVs. The order is valued at around SEK 750 million and was booked in the second quarter 2025.

The order includes battery-electric trucks, loaders, bolters, development drills and longhole drills, as well as conventional trucks, cable bolters, loaders and longhole drills. Deliveries are expected to begin in the fourth quarter 2026 and continue through 2030, with most of the deliveries expected in 2026 and 2027.      

"We're proud that Sandvik BEVs will help contribute to an increased supply of critical minerals, supporting the continued electrification of society. Lower fuel expenses and maintenance costs coupled with longer equipment lifespan will enable a more efficient, economical and sustainable mining operation at Hermosa," says Mats Eriksson, President of Sandvik Mining and Rock Solutions.

Hermosa is currently the only advanced mine development project in the United States that could produce two federally designated critical minerals — manganese and zinc. South32 is developing Hermosa's zinc-lead-silver deposit to be a multi-decade operation with first production expected in 2027.

Stockholm, April 23, 2025

Sandvik AB

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008

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https://news.cision.com/sandvik/r/sandvik-wins-record-order-for-battery-electric-mining-equipment,c4138689

The following files are available for download:

https://mb.cision.com/Main/208/4138689/3402076.pdf	Sandvik wins record order for battery-electric mining equipment
https://news.cision.com/sandvik/i/toro-lh518ib-097-full-resolution-jpeg,c3401128	Toro LH518iB 097 Full resolution JPEG
https://news.cision.com/sandvik/i/sandvik-underground-drilling-bev-range,c3401320	Sandvik Underground Drilling BEV range

FAQ

What is the value of Sandvik's record BEV mining equipment order for South32's Hermosa project?

The order is valued at SEK 750 million and represents Sandvik's largest-ever order for battery-electric vehicles (BEVs).

When will Sandvik (SDVKY) begin delivering equipment to South32's Hermosa project?

Deliveries will begin in Q4 2026 and continue through 2030, with most deliveries scheduled for 2026 and 2027.

What types of mining equipment are included in Sandvik's South32 Hermosa project order?

The order includes battery-electric trucks, loaders, bolters, development drills, longhole drills, as well as conventional trucks, cable bolters, loaders and longhole drills.

What critical minerals will South32's Hermosa project produce using Sandvik's equipment?

The Hermosa project will produce manganese and zinc, both federally designated critical minerals, along with lead and silver.

How will Sandvik's BEV equipment benefit South32's Hermosa mining operations?

The BEV equipment will reduce fuel expenses and maintenance costs while providing longer equipment lifespan, enabling more efficient, economical, and sustainable mining operations.