10 Best Nickel Stocks to Invest in According to Analysts

3) Rio Tinto Group (NYSE:RIO)

Average Upside Potential: 29.5%

Rio Tinto Group (NYSE:RIO) is a multinational mining and metals company, which is engaged in producing nickel and other minerals.

Wall Street analysts remain optimistic about Rio Tinto Group (NYSE:RIO)’s definitive agreements with GravitHy in a bid to ramp up the decarbonization of steelmaking in Europe. As a part of this collaboration, Rio Tinto Group (NYSE:RIO) will supply high-grade direct reduction iron ore pellets from Iron Ore Company of Canada (IOC) operations to GravitHy’s planned operation, and manage the sales and marketing of ultra-low carbon Hot Briquetted Iron (HBI) GravitHy produces.

The steel produced with low-carbon emissions is a critical component of the net-zero energy transition. As per Rio Tinto Group (NYSE:RIO), the production of iron and steel contributes ~8% of global carbon emissions and needs new technologies, redesigned processes, and new infrastructure to decarbonize.

This collaboration is aligned with Rio Tinto Group (NYSE:RIO)’s steel decarbonization strategy to ramp up the development of low-carbon Electric Arc Furnace steelmaking with high-grade iron as feedstock. This should enable Rio Tinto Group (NYSE:RIO) to reduce its Scope 3 emissions and create valuable decarbonized pathways for high-grade iron ore. Rio Tinto Group (NYSE:RIO) remains focused on its decarbonization efforts.

In this regard, the company signed an MoU with China’s Nanjing Iron and Steel Co. on decarbonization technology in ironmaking. Both firms would be exploring pelletizing using extracts from the Rio Tinto site in Pilbara, Western Australia. Rio Tinto Group (NYSE:RIO) has moved from strategy to action on decarbonization and continues to make clear progress towards its climate targets: a 50% reduction in emissions by 2030 and net zero by 2050.

These alliances point to Rio Tinto Group (NYSE:RIO)’s decarbonization efforts, which should result in a reduction of carbon footprint and reach climate goals.