BP to Acquire Battery Technology from StoreDot for $20M

A generic image of a stock chart Credit: Shutterstock photo

BP plcBP 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 , Equinor ASA EQNR and CVR Refining, LP CVRR . 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.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CVR Refining, LP (CVRR): Free Stock Analysis Report

BP p.l.c. (BP): Free Stock Analysis Report

Nine Energy Service, Inc. (NINE): Free Stock Analysis Report

Statoil ASA (EQNR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.