Fortescue shares in the green amid big decarbonisation news

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

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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.

Worker putting on solar panels on a roof.

Image source: Getty Images

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.

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