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BP to Acquire Battery Technology from StoreDot for $20M

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BP plc (BP - Free Report) intends to purchase a lithium ion-based battery technology developed by StoreDot for $20 million. The move is in sync with the company’s target to offer ultra-fast charging battery, which will cater to the increasing demand of electric vehicles (EVs) worldwide.

StoreDot’s technology facilitates fast charging for the mobile and industrial markets. The company is developing another type of battery that will have a charging duration similar to the time spent on refueling a conventional car. Currently, StoreDot expects first sales of its flash batteries for mobile devices by 2019.

As the number of EVs is increasing rapidly, BP is working across the supply chain to support the development of the technologies and infrastructure to sustain the growth. The company believes that ultra-fast charging will be vital in speeding up the acceptance of EVs worldwide.

The acquisition emphasizes BP’s commitment toward a lower carbon future with a goal to lower greenhouse gas emissions in its operations. The deal will enable the development of products and services that will help customers to reduce emissions as well as create new low carbon businesses. BP already has more than70 charge points on its retail sites internationally.

Recently, BP made a few investments to venture into renewable energy. In January 2018, BP invested $5 million in FreeWire Technologies, a manufacturer of mobile EV rapid charging systems. On May 10, BP inked an MOU with China’s NIO Capital to examine prospects in advanced mobility.

Per sources, BP plans to reduce workforce in exploration and production by 3%. This will be a part of the streamlining of global upstream business to make the division more competent and viable.

A BP spokesman stated that the company plans to cut about 540 jobs from the total upstream workforce of 18,000 by the end of 2018. BP has divested assets worth $50 billion over the recent years and intends to develop any potential upstream prospects as well as deliver existing five-year growth strategy.

Price Performance

During the past three months, BP’s shares have gained 17.4% compared with the industry’s 15% rise.

 

Zacks Rank & Other Key Picks

BP currently sports a Zacks Rank #1 (Strong Buy).

A few other top-rankedplayers in the same sector are Nine Energy Service, Inc (NINE - Free Report) , Equinor ASA (EQNR - Free Report) and CVR Refining, LP (CVRR - Free Report) . All three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company pulled off a positive earnings surprise of 28.57% in the preceding quarter.

Equinor, based in Norway, is a major international integrated oil and gas company. It witnessed an average positive earnings surprise of 11.53% in the last four quarters.

Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.

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