Inside First Mode's new Sodo facility, future of manufacturing looks different

First Mode wants to clean up heavy industry, and it now has the factory space in Sodo to get started.

In February, the Seattle-based clean energy company opened its 45,000-square-foot factory at 3417 First Ave. S. First Mode is retrofitting mining haul trucks for its new corporate parent, mining company Anglo American, but that is just the start.

"If there's 400 pounds of aluminum in a Model S, where did it come from? How did it get from point A to point B? How did it get from point B to C?" said Paul McGinty, vice president of supply chain and production at First Mode. "The next consumer decision point will be who is using green supply chain behind the front end?"

First Mode wants to decarbonize the entire supply chain, starting with mining trucks that haul precious metals and moving eventually into modes of transportation like rail and boats. McGinty noted that cars for sale now have emissions details on the window sticker, but he said in five years consumers will expect the back-end supply chain emissions available as well.

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To innovate and meet design changes from engineers, First Mode has largely avoided legacy infrastructure in its new factory. Too much set machinery would lock First Mode into certain processes, which could hamstring the company if its engineers find a better way to manufacture.

"We don't want to tell engineering what they can do based on having fixed infrastructure," said Bill Huntington, senior director of hardware manufacturing at First Mode. "We can really adapt and pivot quickly."

Backend emissions are becoming more of a concern for consumers. According to the UN Global Compact, indirect emissions that occur in a company's value chain, or Scope 3 emissions, usually make up more than 70% of a business' carbon footprint. In March, the Securities and Exchange Commission approved new rules to require some companies to report emissions data. The new rules took out reporting requirements on Scope 3 emissions in light of heavy pushback from the business community.

According to the International Council on Mining and Metals, diesel-powered mining trucks make up between 30% and 80% of direct emissions at a mine site.

In January 2023, the company closed its $1.5 billion merger with Anglo American's clean energy division, nuGen. Anglo American made a $200 million investment in First Mode as part of the deal and took a majority stake in the company.

First Mode, which was founded in 2018, launched a hydrogen-powered haul truck for Anglo American that entered its commercial fleet in 2022. Anglo American will use First Mode to decarbonize more than 400 of its haul trucks over the next roughly 15 years. In January, however, First Mode laid off about 20% of its roughly 240 U.S. employees at the time.

Chris Voorhees, First Mode's co-founder, left the company in September for personal reasons. He had been First Mode's CEO until the nuGen merger, after which he became chief product and technology officer. Julian Soles, previously Anglo American's head of technology development, took over as CEO after the merger.

By the numbers

First Mode has an additional roughly 90,000 square feet between facilities in Pioneer Square and Sodo. The company also has a testing site in Centralia and a presence in Perth, Australia.

Conor Duggan, director of government affairs at First Mode, said the company has more than 200 employees based in Seattle and about 350 globally. Huntington said the Sodo factory will have about 30 people working there full-time, not including engineers who swing by, once production ramps up.

McGinty said mining equipment is challenging because mines vary so much from site to site. For this reason, the company is targeting multiple engine models, specifically a hybrid engine, a fully electric engine and fuel cell electric engines powered by hydrogen. McGinty added that working under Anglo American gives First Mode a direct line to its customer.

For First Mode, it's all part of creating a completely green chain.

"So much of what we focus on here from a government and policy perspective is on clean cars on I-5 and I-90, and clean ferries in the Puget Sound," Duggan said. "All of that is super important, but we can't have a holistic picture for our sustainability in this region without also looking back at the very root of the supply chain."