Fortescue shares in the green amid big decarbonisation news

Fortescue shares are leading the renewables charge. Here's what's happening now.

| More on:
Worker putting on solar panels on a roof.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Fortescue shares slightly rise despite a broader market decline, supported by strong iron ore prices and favourable investor sentiment.
  • The company announced partnerships with four global green energy leaders.
  • Executive Chairman Andrew Forrest emphasises the global collaboration efforts, leveraging international partnerships to achieve "Real Zero by 2030".

Fortescue Metals Group Ltd (ASX: FMG) shares are bucking the broader selling action on Friday and edging the other way.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed yesterday trading for $19.14 apiece. In late morning trade today, shares are changing hand for $19.15, up 0.1%.

While a modest gain, the ASX 200 is down 0.2% at this same time.

Fortescue shares will be finding some support with the iron ore price remaining well above where most analysts had forecast it would be by this time in 2025. Iron ore dipped 0.2% overnight but remains at US$105.95 per tonne.

Investors will also be mulling over the new green partnerships the ASX 200 miner announced in New York during the United Nations General Assembly and reported to the markets this morning.

Here's what's happening.

Fortescue shares to lead renewables charge

ASX ESG investors may be responsible for helping Fortescue shares outperform today, after the company reported it has signed agreements with four leading green energy companies.

Those are electric vehicles and battery manufacturer BYD; solar technology giant LONGi; construction and mining equipment manufacturer XCMG; and wind and energy storage company Envision Energy.

Fortescue said it has also finalised its acquisition of Spanish renewable technology company Nabrawind.

The company highlighted that the new agreements build on its global innovation ecosystem, noting that European "powerhouse" Liebherr already plays a major role in decarbonising its mining fleet with the production of T 264 trucks – intended to use a battery-electric power system – in Virginia in the United States.

Fortescue said it hopes the new partnerships will both enable the electrification of its Pilbara operations and deliver on its target of 'Real Zero by 2030', but also spur decarbonisation efforts on a global level.

What did management say?

As you're likely aware, Fortescue founder and executive chairman, Andrew Forrest, is adamant on delivering his decarbonisation goals.

Commenting on the new agreements that could help support Fortescue shares longer term, he said, "China is scaling and manufacturing green technologies at unprecedented speed and our partnerships give Fortescue access to that capability."

Forrest added:

Meanwhile, through Nabrawind in Spain, Liebherr in Germany and the United States, Fortescue Zero in the United Kingdom, and Fortescue operations in the Pilbara in Western Australia, we are building a global R&D and production network.

This is a truly multilateral collaboration that draws on the best ideas and manufacturing capacity to deliver the lowest cost energy and tackle climate change.

Fortescue shares are up 2% in 2025, excluding the 60 cents per share fully franked dividend that is being paid out today.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Chunk of mined copper.
Resources Shares

This ASX mining stock is up 120% in a year. Can the rally continue?

Strong momentum raises the question of whether more upside lies ahead.

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

With mining to kick off next month, this bauxite miner's stock is on the rise

Let's take a look.

Read more »

Iron ore price Vale dam collapse ASX shares iron ore, iron ore australia, iron ore price, commodity price,
Resources Shares

This ASX 200 company's shares have hit a new record high on more contract success

This company keeps racking up the wins.

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

This ASX resources stock is soaring 7% on a big quarterly result

Shares in this ASX resources company jumped after a quarterly update highlighted stronger production and a significantly improved balance sheet.

Read more »

Ecstatic man giving a fist pump in an office hallway.
Resources Shares

Up 400% in a year: Why is this ASX silver stock breaking records today?

This silver stock is catching the eye again on Wednesday. What is it this time?

Read more »

Woman attached to rocket flies into the air
52-Week Highs

Scores of ASX mining shares hit 52-week highs

BHP, Rio Tinto, South32, and Mineral Resources shares are among those that hit 52-week highs today.

Read more »

Coal miners look resigned to the end of mining this resource
Resources Shares

Coronado shares surge 12% after Monday's sell-off

Coronado shares rebounded sharply on Tuesday after heavy selling, as investors reassessed the impact of last week’s incident.

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

Almost a four bagger, this ASX tungsten company says production is strong as its shares hit a record

This company's shares are flying, but they have bigger plans in store.

Read more »