Fortescue (ASX:FMG) share price rises amid Gigafactory plans with Plug Power

The Fortescue share price is on form on Friday…

| More on:
A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath

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

sdf

The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher on Friday.

In morning trade, the mining giant's shares are up 1.5% to $14.52.

Why is the Fortescue share price pushing higher?

There have been a couple of potential catalysts for the rise in the Fortescue share price this morning.

The first is a rebound in iron ore prices overnight. According to CommSec, the spot benchmark iron ore price rose by US$2.40 or 1.9% to US$126 a tonne during Thursday night trade.

Also potentially giving the Fortescue share price a boost is an announcement from its Fortescue Future Industries business.

What did Fortescue announce?

This morning Fortescue announced that it has signed a letter of intent with Plug Power for a 50-50 joint venture to build a Gigafactory in Queensland, Australia.

Plug Power is a Nasdaq-listed leading provider of turnkey hydrogen solutions for the global green hydrogen economy.

If the agreement goes ahead, the two companies will build a two-gigawatt factory to produce large-scale proton exchange membrane (PEM) electrolysers.

It will also have the ability to expand into fuel cell systems and other hydrogen-related refuelling and storage infrastructure in the future.

The release advises that Plug Power will supply the electrolyser and fuel cell technology and Fortescue Future Industries will contribute advanced manufacturing capabilities.

Fortescue Future Industries will also be the primary customer of the products manufactured by the joint venture. This will enable its ambitions in decarbonising its operations with stationary power and mobility applications running on green hydrogen.

Fortescue Future Industries' CEO, Julie Shuttleworth, commented:

We need solar panels, wind towers, and electrolyzers in such scale that we need to produce them where we use them – including in Australia. We have enough solar and wind in Australia to power many countries of the world. Working together with Plug Power, we can create this future.

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

More on Share Gainers

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to a disappointing week for investors this Friday.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher

These shares are having a good finish to the week. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Man smiling on top of rocks with mountains in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were in a nervous mood today.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Beach Energy, Boss Energy, Cochlear, and Light & Wonder shares are pushing higher

These shares are having a good time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday session for ASX investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »