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I've found a work-around to the issue.
You will be able to apply animations to your character. The only drawback is the 'Enable Blendshapes' feature is missing that allows you to have facial expressions.
Hey! I've been using the solution you detailed above to try and upload the character from steam's version of fuse to Mixamo, yet the website cant map out the character when uploading the zip file, when I include the mtl file. When I don't include the mtl file it works just fine, but then I've got not textures obviously.
Do you have any idea what could it be?
It might be the software build on Steam. I've never used that one - just the installer that was on Adobe Cloud several versions ago. I don't know what your workflow or pipeline is. You could use Mixamo's auto-rigger and download the FBX or DAE file after it's rigged. Then relink the materials in the application that you'll be using for final production???