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Thacker Pass Is Being Built: Here Is Why That Is the Best News NILI Investors Have Heard All Year.

Jennifer L
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Thacker Pass Is Being Built: Here Is Why That Is the Best News NILI Investors Have Heard All Year.

Disseminated on behalf of Surge Battery Metals.

Lithium Americas (LAC) has officially broken ground at Thacker Pass, Nevada. The project is advancing toward its first production target in 2028. LAC CEO Jonathan Evans said in the company’s news release that the project should be mechanically complete by the end of 2026. Commissioning will happen through 2027, with commercial production starting in 2028.

For investors watching Nevada clay lithium, this milestone is more than an update. It’s a market signal that could change the investment landscape.

De-Risking the Clay Lithium Category

For years, clay-based lithium has faced a single recurring objection: “It has never been done at a commercial scale.” Unlike brine or hard-rock lithium, sedimentary clay deposits presented a technological and operational unknown. Investors and lenders were cautious, capital costs were higher, and early-stage projects struggled to secure financing.

Thacker Pass changes that narrative. Once LAC makes battery-grade lithium carbonate from sedimentary clay at a commercial scale, it reduces risks for the whole category. Projects in Nevada now have clear proof that clay-based lithium can be mined and processed effectively.

The historical precedent is instructive. In Chile’s Atacama region, the first brine lithium projects proved the chemistry and cost-effectiveness of large-scale lithium extraction. Later projects attracted capital more easily and on better terms. This created a ripple effect, speeding up the region’s lead in global lithium supply.

Thacker Pass is playing that same role for sedimentary clay. Its success is not just a win for LAC. It marks a key milestone for the whole Nevada clay lithium sector, including the Nevada North Lithium Project (NNLP) of Surge Battery Metals (TSX-V: NILI | OTCQX: NILIF).

Understanding the Technical Landscape

Thacker Pass Phase 1 has lithium levels of 1,500–2,500 ppm. They plan to extract it using sulfuric acid leaching to create battery-grade lithium carbonate. The project is important both geographically and operationally.

It features a large pit, a big processing facility, and integrated infrastructure. This covers access roads, water supply management, and energy sources that meet Nevada’s rules.

Thacker Pass lithium mine project
Source: Lithium Americas

While Thacker Pass shows commercial viability, it is crucial to note that NNLP and Thacker Pass are not technically the same. NNLP employs a different beneficiation approach and reagent chemistry to optimize recovery.

NNLP: The Higher-Grade, Next-Generation Project

Thacker Pass shows clay lithium on a large scale. NNLP positions itself as the next evolution of this asset class, with clear geological advantages:

  • Grade: NNLP averages 3,010 ppm lithium, significantly higher than Thacker Pass Phase 1 material. Recent drilling results show that step-out drilling found a 31-meter intercept with 4,196 ppm lithium from surface. This gives NNLP a potential extraction advantage.
  • Strip Ratio: NNLP’s 1.16:1 strip ratio is among the lowest in the sedimentary clay peer group. This indicates that it has favorable material movement requirements relative to ore recovered.
  • Operating Costs: NNLP’s estimated OPEX is US$5,097/t LCE, lower than Thacker Pass guidance of ~US$6,200/t C1. It suggests that it has competitive economic positioning within the peer group.

Both projects produce battery-grade lithium carbonate using sulfuric acid leaching. However, each method is customized for the specific geology of the project. NNLP is not a copy of Thacker Pass. Rather, it is a next-generation clay project designed to leverage lessons learned while improving key parameters.

Surge lithium clay comparison

Moreover, infill drilling showed a steady, thick, high-grade core. It included intercepts like 116 meters at 3,752 ppm Li and 32 meters at 4,521 ppm Li. These results support future resource expansion. They also highlight the project’s scale, quality, and technical readiness as it prepares for a Pre-Feasibility Study.

Why Category De-Risking Matters for Investors

In emerging resource sectors, de-risking is often more valuable than the resource itself. Projects that validate a new extraction method or commodity unlock several market advantages:

  1. Lower financing risk: Investors are more willing to fund projects once proof of concept exists.
  2. Improved capital terms: Lending rates and equity expectations can improve when technology and economics are validated.
  3. Accelerated project development: Developers can move faster, reduce contingencies, and focus on optimization rather than proving viability.

Thacker Pass’s progress effectively removes the “first-mover risk” from sedimentary clay projects. NNLP has higher grades, near-surface mineralization, and competitive OPEX. Now, it can be assessed on its own merits, not on doubts about large-scale clay processing.

Strategic Significance in the U.S. Lithium Market

The timing of Thacker Pass’s construction and NNLP’s development aligns with broader policy and market trends. Lithium is a critical input for electric vehicles, grid-scale storage, and advanced defense technologies. The U.S. government has emphasized domestic lithium production as a strategic priority.

In March 2025, President Trump signed an executive order called “Immediate Measures to Increase American Mineral Production.” This order directs federal agencies to speed up permitting and support domestic projects. It also aims to lessen dependence on foreign supply chains for critical minerals.

Projects like Thacker Pass and NNLP benefit from this policy. They provide secure domestic sources that boost the lithium supply chain.

Nevada is central to this strategy. Its clay deposits are among the largest and best in the U.S. They provide a stable base for domestic lithium production, which supports electrification goals and helps reduce reliance on imports.

Thacker Pass’s progress also sends a signal beyond the Nevada clay sector. It demonstrates that investors and capital markets are willing to back sedimentary clay projects at scale. That validation reduces perceived risk for future projects. It also speeds up permitting and development timelines as well as strengthens valuation metrics.

NNLP, with its superior grade and shallower resource, stands to benefit disproportionately. It is no longer constrained by questions of category viability. It can now be evaluated based on its geological quality, operational efficiency, and potential returns.

NNLP’s advantages, combined with the category de-risking effect of Thacker Pass, position it as a next-generation investment opportunity in Nevada’s clay lithium space.

Looking Ahead: Domestic Lithium’s Role in Energy Transition

Lithium demand is set to grow rapidly as electric vehicles, battery storage, and renewable systems expand. Securing a high-quality, domestic supply is critical to maintaining U.S. leadership in clean energy technology.

lithium demand growth through 2035

Thacker Pass proves that commercial-scale sedimentary clay lithium is achievable. NNLP demonstrates the potential for even higher efficiency and superior economics within the same category. Together, these projects show how local resources can support the energy transition while providing compelling investment opportunities.

NNLP’s higher grades, near-surface mineralization, low strip ratio, and competitive OPEX position it as a leading asset within a now-validated category.

For NILI investors, the message is clear: the clay lithium category is no longer theoretical, and NNLP is positioned to capitalize on the proof-of-concept success. The best news of the year is here—and it’s grounded in both science and strategy.


DISCLAIMER 

New Era Publishing Inc. and/or CarbonCredits.com (“We” or “Us”) are not securities dealers or brokers, investment advisers, or financial advisers, and you should not rely on the information herein as investment advice. Surge Battery Metals Inc. (“Company”) made a one-time payment of $75,000 to provide marketing services for a term of three months. None of the owners, members, directors, or employees of New Era Publishing Inc. and/or CarbonCredits.com currently hold, or have any beneficial ownership in, any shares, stocks, or options of the companies mentioned.

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CAUTIONARY STATEMENT AND FORWARD-LOOKING INFORMATION

Certain statements contained in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate,” “expect,” “estimate,” “forecast,” “plan,” and similar expressions suggesting future outcomes or events. Forward-looking information is based on current expectations of management; however, it is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those anticipated.

These factors include, without limitation, statements relating to the Company’s exploration and development plans, the potential of its mineral projects, financing activities, regulatory approvals, market conditions, and future objectives. Forward-looking information involves numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking information. These risks and uncertainties include, among other things, market volatility, the state of financial markets for the Company’s securities, fluctuations in commodity prices, operational challenges, and changes in business plans.

Forward-looking information is based on several key expectations and assumptions, including, without limitation, that the Company will continue with its stated business objectives and will be able to raise additional capital as required. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.

There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially. Accordingly, readers should not place undue reliance on forward-looking information. Additional information about risks and uncertainties is contained in the Company’s management’s discussion and analysis and annual information form for the year ended December 31, 2025, copies of which are available on SEDAR+ at www.sedarplus.ca.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management’s current beliefs and is based on information currently available to the Company. The forward-looking information is made as of the date of this news release, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances except as may be required by applicable law.

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NVIDIA (NVDA Stock) Targets $500 Billion AI Buildout: The Race for Compute, Power and Clean Energy

Saptakee S
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0
NVIDIA (NVDA Stock) Targets $500 Billion AI Buildout: The Race for Compute, Power and Clean Energy

NVIDIA (NASDAQ: NVDA) is bringing some of the world’s largest financial institutions into the artificial intelligence infrastructure boom as it seeks to mobilize more than $500 billion in third-party capital over time.

The chipmaker has signed memorandums of understanding with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to establish independent compute financing platforms.

The goal is simple: give AI companies, cloud providers and enterprises better access to the capital needed to build large-scale computing infrastructure.

The timing is important. AI demand continues to grow rapidly, but the next phase of the boom will require much more than advanced chips. Companies also need data centers, electricity, cooling systems, networking equipment, and financing.

NVIDIA now wants to help bring those pieces together.

NVIDIA Wants to Turn Compute Into Infrastructure

NVIDIA has become one of the biggest beneficiaries of the AI boom by supplying the GPUs that power many of the world’s AI data centers. Now, however, the company is moving beyond selling chips.

NVIDIA describes large-scale AI data centers as “AI factories.” These facilities use electricity, computing power, and data to produce AI services and intelligence. And this makes AI compute look increasingly like an infrastructure asset.

This is important because infrastructure investors already understand how to finance long-lived assets that generate cash flows over time.

Under the proposed financing model, the six financial institutions will independently evaluate individual projects. Their assessments will include customer demand, expected utilization, cash flow, and the residual value of computing equipment.

As a result, NVIDIA is not promising to finance every AI project. Instead, it is helping create financing platforms that could allow qualified customers to raise capital at scale.

nvidia

What Does the $500 Billion Figure Mean?

The more than $500 billion figure represents aggregate third-party capital that the platforms are designed to mobilize over time.

It is not NVIDIA revenue. It is also not a single $500 billion fund or a commitment to one customer.

The financial institutions will make independent investment decisions based on the economics of each project. NVIDIA will provide the technology platform and broader AI ecosystem, while the financial institutions bring long-term capital and infrastructure-financing expertise.

This structure could address a growing problem in the AI market.

Many AI companies, enterprises, and AI cloud providers have strong demand for computing capacity but may not have enough capital to build the infrastructure themselves.

Financing could allow these companies to secure computing capacity without taking on the full upfront cost of building and owning the infrastructure.

Why NVIDIA Could Support Some Projects

The GPU giant said it may provide residual-value support of up to 25% for certain opportunities. However, this support would be assessed individually and would be limited to residual value. It would not replace independent underwriting by the financial institutions.

NVIDIA believes its computing infrastructure has characteristics that can make it attractive to investors. Its GPUs are widely used across the AI industry and can serve different models and workloads. They can also potentially be redeployed between customers and operators.

Meanwhile, NVIDIA’s CUDA software ecosystem supports a large global base of developers and customers. Together, these factors could help computing equipment retain value even as newer generations of GPUs reach the market.

That is particularly important for investors financing assets in a sector where technology changes quickly.

NVIDIA’s Revenue Shows the Scale of AI Demand

NVIDIA’s financial results demonstrate why investors are paying close attention to AI infrastructure.

The company reported $81.6 billion in revenue for fiscal Q1 2027, an 85% increase from a year earlier. Data center revenue reached $75.2 billion, making up the vast majority of quarterly sales.

  • For full fiscal 2026, NVIDIA generated $215.9 billion in revenue. Data center revenue reached $193.7 billion, accounting for roughly 90% of the company’s total revenue.

NVIDIA

NVIDIA
Source: quantumrun.com

The shift shows how quickly AI has transformed NVIDIA’s business.

The company is also moving through another major technology cycle. Its Blackwell platform has become a major source of revenue, while the next-generation Rubin platform is expected to enter production in the second half of 2026.

However, rapid innovation also creates a challenge for infrastructure investors.

Projects financed today must generate enough value to justify their cost even as newer and potentially more powerful computing systems enter the market.

A New Financing Model for AI Factories

NVIDIA’s initiative could ultimately have implications far beyond the chip industry.

Major infrastructure buildouts have historically depended on outside capital. Electricity networks, telecommunications systems, transportation infrastructure and data centers all required significant investment before they could generate returns.

NVIDIA sees AI factories entering a similar phase.

The economic cycle is relatively straightforward. More computing capacity can support better AI models and services. Better AI can increase usage. Higher usage can generate more revenue. That revenue can then support additional investment in computing capacity.

However, the model depends on real demand and strong project economics.

But AI Is Creating a New Electricity Demand Surge

The financing push also comes as AI reshapes global electricity demand.

AI data centers require huge amounts of electricity to operate and cool increasingly powerful computing systems.

The International Energy Agency expects global data center electricity consumption to more than double by 2030. It projects demand will reach about 945 terawatt-hours (TWh), compared with roughly 415 TWh in 2024.

This would bring data centers close to 3% of global electricity consumption by the end of the decade.

Accelerated servers, primarily used for AI workloads, are expected to drive much of this growth. The IEA expects electricity consumption from these systems to increase by around 30% annually through 2030.

AI electricity demand

The United States faces an especially significant increase. Data centers could account for almost half of the growth in U.S. electricity demand through 2030.

Therefore, the AI infrastructure story is increasingly becoming an energy story as well.

Building more GPUs will not solve the problem if data centers cannot secure enough electricity or connect to the grid.

NVDA Stock Gains: Can AI Infrastructure Deliver the Returns?

NVIDIA’s partnerships with major financial institutions could help turn AI compute into a new investable infrastructure asset. By improving access to capital, the initiative may allow more companies to expand their AI capacity without funding the entire buildout themselves.

For NVIDIA, that could support long-term demand for its GPUs. However, investors still need to weigh risks such as high valuations, changing AI spending, export restrictions and limited power capacity.

NVDA stock closed at $225.30 on August 13, up 0.54%. The share price reflects strong investor confidence in NVIDIA’s role in the AI boom. Yet, the bigger question is whether growing AI infrastructure spending will generate enough revenue to justify the capital being deployed.

nvidia stock NVDA
Source: Google

If demand and utilization remain strong, NVIDIA’s financing strategy could accelerate the next phase of the AI buildout. Conversely, weaker demand or lower returns could increase risks for investors. For now, NVIDIA is betting that compute will become a core infrastructure asset of the AI era

EFM’s $100M Oregon Forest Bet Puts Carbon at the Heart of Timber Investment

Jennifer L
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0
EFM’s $100M Oregon Forest Bet Puts Carbon at the Heart of Timber Investment

EFM Investments & Advisory has acquired 11,735 hectares, or about 29,000 acres, of coastal rainforest in northern Oregon in a deal worth more than $100 million. The acquisition adds a major block of forestland to EFM’s portfolio. It also highlights a growing trend in the carbon market wherein investors are placing greater value on forests for more than timber.

EFM’s model combines timber production with carbon storage, conservation, and other environmental benefits. The company has developed forest carbon projects across the U.S. West and sees carbon revenue as a way to support longer forest rotations and restoration.

The deal comes as buyers show stronger interest in higher-quality forest carbon credits.

EFM Builds a Larger Forest Carbon Portfolio

EFM is a U.S. forest investment and management firm focused on what it calls climate-smart forestry. The company says it has developed forest carbon projects across about 150,000 acres in the United States. It has worked with the three major U.S. voluntary carbon registries: Verra, the American Carbon Registry (ACR), and the Climate Action Reserve (CAR).

EFM manages forests for several sources of value. These include timber, carbon credits, conservation, and recreation. Its approach is important because carbon revenue can help change how forests are managed. EFM says this revenue can support longer harvest rotations, restoration, salmon habitat, and tribal partnerships.

The Oregon acquisition gives the company another large forest asset where this model can be applied.

Forests Are Becoming More Valuable for Carbon

Forests are a major part of the global carbon market because they can remove and store large amounts of carbon dioxide.

The World Bank’s State and Trends of Carbon Pricing 2026 found that global carbon credit issuance increased 8% from 2024 to 2025. Prices declined slightly overall, but some credits continued to earn premiums. These included highly rated forest conservation and reforestation projects.

forest carbon credit market
Sources: Sylvera Carbon Markets Report; AlliedOffsets VCM Review; Ecosystem Marketplace SOVCM Data; Market Growth Reports (Voluntary Carbon Offsets for Forestry).

This is an important change for forest investors. The market is becoming less focused on the number of credits a project can produce. Buyers are paying more attention to quality, measurement, and the risk that claimed carbon benefits may not last.

That trend favors forest projects with strong management plans and reliable monitoring.

Improved Forest Management Is EFM’s Core Strategy

A key part of EFM’s business is Improved Forest Management (IFM). IFM projects seek to increase carbon storage by changing how existing forests are managed. Actions can include:

  • Extending harvest rotations,
  • Protecting carbon-rich areas, and
  • Restoring degraded forests while maintaining timber production.

EFM uses third-party carbon standards and says it uses ACR’s dynamic baseline approach for its projects.

A dynamic baseline updates the reference scenario over time. EFM says this helps measure project performance more accurately and reduce the risk of over-crediting. This matters because forest carbon credits face scrutiny over additionality and permanence.

A project must show that its carbon gains are real and that the forest management changes would not have happened without the carbon project. The company is also following a 5R framework for its climate-smart forestry implementation.

EFM 5R framework for forest improvement
Source: EFM

Oregon Offers Strong Carbon and Conservation Value

Oregon is an important market for this strategy. EFM already has a history in the state. Its Moss Creek project on the Garibaldi property was the first forest carbon project in Oregon and Washington to generate credits, according to the company.

EFM says the project is expected to offset about 150,000 tons of carbon through 2040. The carbon benefits come from actions such as reducing harvest volumes, extending rotations, expanding reserves and protecting habitat. The company’s latest acquisition adds another major forest asset to this strategy.

Oregon’s forests also have important climate value at the state level. The Oregon Department of Energy says forests provide the largest carbon removal benefit among the state’s land types.

However, the state also faces growing climate risks. Wildfire emissions have increased, while the annual carbon removal provided by Oregon’s lands has declined since 1990. That makes long-term forest management increasingly important.

Corporate Demand Is Supporting Forest Carbon

The growth of forest investment is also linked to rising demand from corporate buyers. The World Bank found that companies signed about $12 billion in carbon credit offtake agreements in 2025. These contracts covered an estimated 158 million tonnes of CO2e in future credits.

The value of the agreements was nearly three times the $4.2 billion recorded in 2024. Nature-based projects (NBS)accounted for a significant share of this future demand.

nature based credits Allied Offsets
Source: AlliedOffsets

These agreements can provide forest developers with more certainty. Instead of waiting until credits are issued, developers can secure buyers in advance. That can help finance forest acquisitions and long-term management.

EFM has already worked with major corporate buyers. Its forest carbon portfolio includes projects linked to buyers such as Microsoft and Meta.

The company says its Olympic Rainforest project in Washington contains more than 10 million tonnes of stored carbon across a 68,000-acre property. EFM expects climate-smart management to add about 1 million tonnes of CO2 in carbon storage over the next decade.

These projects show how forest ownership and carbon finance can work together.

Higher-Quality Credits Face a Higher Bar

The growing value of forest carbon does not remove the risks. Forests can lose stored carbon through wildfire, disease, drought, and other disturbances. Carbon projects must also prove that their claimed reductions or removals are additional.

This makes strong measurement and monitoring essential.

The World Bank’s latest market data shows why quality matters. Carbon-credit prices fell slightly overall in 2025, but higher-quality forest projects continued to receive premiums. EFM is positioning itself around this part of the market.

The company says it keeps control of carbon project development, including baseline design, third-party consultants, credit marketing, and delivery. It also uses major carbon registries and third-party standards.

For investors, this approach can help reduce some of the risks linked to low-quality credits.

EFM $100M Oregon forest carbon investment

Forest Investment Is Moving Beyond Timber

EFM’s $100 million Oregon acquisition reflects a broader change in how forests are valued. Timber remains an important source of revenue. But forests can also generate value through carbon storage, conservation, biodiversity, water protection, and recreation.

The carbon market is creating another financial incentive to manage those assets over longer periods. This opportunity is becoming more important as companies commit billions of dollars to future carbon purchases. At the same time, buyers are becoming more selective and placing premiums on higher-quality forest credits.

EFM’s strategy fits this shift. Its latest Oregon acquisition gives the company a larger forest base while expanding its potential role in the U.S. forest carbon market.

The deal shows how forests are becoming multi-value assets: sources of timber and investment returns, as well as long-term carbon stores that can support the growing demand for higher-quality nature-based credits.

Malaysia Targets $21.5 Billion in Energy Savings as Data Center Power Demand Rises

Saptakee S
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0
Malaysia Targets $21.5 Billion in Energy Savings as Data Center Power Demand Rises

Malaysia has renewed its 10-year energy efficiency strategy. Rising electricity demand, industrial growth, and more data centers are straining the country’s power system.

The National Energy Efficiency Action Plan 2026–2035 (NEEAP 2.0) aims for about US$21.5 billion (RM85.24 billion) in savings over the next decade. It also seeks to cut energy demand by 11.6% by 2035 compared to a business-as-usual (BAU) scenario.

This plan supports Malaysia’s goal of lowering greenhouse gas emissions while fostering a fast-growing economy. Energy efficiency is key. It can reduce consumption and emissions without hindering economic activity.

Malaysia Sets 11.6% Energy Demand Reduction Target

NEEAP 2.0 is expected to save 815,382 terajoules (TJ) of energy by 2035. These savings could avoid around 26.1 million metric tons of CO2-equivalent emissions compared to the BAU scenario.

malaysia energy efficiency
Source: NEEAP

Without new measures, energy demand from industrial, commercial, and domestic sectors could hit 1.47 million TJ by 2035. The new plan aims to cut this demand by about 169,528 TJ.

Targets vary by sector:

  • Industrial sector: 11.9% reduction by 2035
  • Commercial sector: 13.2% reduction
  • Domestic sector: 8.7% reduction

The industrial sector is expected to provide the largest savings, about 69% of total reductions. Commercial users will contribute around 21%, while households will account for about 10%.

energy savings
Source: NEEAP

This focus aligns with Malaysia’s industrial structure. Factories consume much more energy than homes. Improving industrial equipment and processes can lead to significant savings.

Malaysia’s Energy Demand Is Also a Climate Challenge

The efficiency push comes as Malaysia grapples with a significant emissions footprint.

In 2024, Malaysia’s CO₂ emissions, excluding land use and forestry, were about 8.3 tonnes per person, according to World Bank data. This is up from 5.7 tonnes per person in 2000, reflecting industrial growth.

This figure becomes critical as electricity demand rises. Malaysia attracts major investments in manufacturing, semiconductor production, and data centers, all requiring reliable power.

The land-use sector also affects emissions. Forests can reduce net greenhouse gas emissions when they absorb more carbon than they release.

Thus, cutting energy-related emissions is essential. Efficiency measures can help slow emissions growth while Malaysia expands its economy and increases renewable energy use.

First NEEAP Program Exceeded Its Target

NEEAP 2.0 builds on Malaysia’s first energy efficiency action plan from 2016 to 2025. The initial program saved around 60,886 gigawatt-hours (GWh) of electricity, exceeding its target of 52,233 GWh. This saved about RM16.1 billion.

  • The first NEEAP also avoided an estimated 35.6 million tonnes of CO2-equivalent emissions.

The new program aims to improve results by creating a stronger regulatory framework and encouraging broader participation.

Data Centers Add to Malaysia’s Power Challenge

Malaysia’s growing data center industry highlights the need for energy efficiency.

The country is becoming one of Southeast Asia’s fastest-growing data center markets, attracting billions from global tech firms. Data centers require significant electricity for computing and cooling.

The rise of artificial intelligence may increase electricity demands as companies expand their computing capacity. This poses a challenge for Malaysia. It wants to attract energy-intensive industries while controlling electricity demand and emissions.

Thus, energy efficiency can bridge that gap. Improved cooling systems and energy management can lower energy needs while maintaining output.

NEEAP 2.0
Source: NEEAP

New Rules Strengthen Energy Efficiency

One major change is the Energy Efficiency and Conservation Act (EECA).

This law provides a stronger framework for managing energy use and emphasizes efficiency among major users. It shifts from voluntary measures to a more structured approach.

NEEAP 2.0 will work alongside this framework, extending efficiency measures to smaller companies, households, and other consumers. Financial incentives may encourage investments in energy-efficient technologies.

This approach creates a wider pool of participants contributing to Malaysia’s energy savings.

NEEAP 2.0 Supports Malaysia’s Net-Zero Goal

Malaysia aims to cut carbon intensity by 45% from 2005 levels by 2030 and reach net-zero emissions by 2050.

Achieving these goals requires more than just renewable energy. Malaysia must manage demand, boost industrial productivity, and cut unnecessary energy use. Thus, NEEAP 2.0 is vital for complementing renewable energy policies.

The plan also reflects a shift in how governments approach decarbonization. Malaysia targets reducing overall energy consumption, not just replacing fossil fuels.

Energy Efficiency Could Cut Costs and Emissions

The success of NEEAP 2.0 will depend on effective implementation.

Malaysia’s energy landscape has changed since the first NEEAP began in 2016. Electricity demand is rising, industrial investment is growing, and data centers are a larger part of the economy.

     Overview and Comparison of Energy Policies in Malaysia

energy policies

  • The potential US$21.5 billion in utility savings is significant for businesses and consumers.
  • The projected 815,382 TJ in cumulative energy savings could ease pressure on the power system and cut millions of tonnes of emissions.

For Malaysia, energy efficiency is more than a cost-saving measure. It is a crucial tool for managing rising power demand, boosting competitiveness, and cutting emissions.

If NEEAP 2.0 meets its 11.6% energy demand reduction target by 2035, it could strengthen Malaysia’s balance between economic growth and climate goals.

Tesla’s (TSLA Stock) $10.1 Billion Solar Factory in Texas Signals a New U.S. Manufacturing Push

Jennifer L
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0
Tesla’s (TSLA Stock) $10.1 Billion Solar Factory in Texas Signals a New U.S. Manufacturing Push

Tesla is planning a massive solar manufacturing project in Texas that could reshape its energy business and strengthen U.S. solar supply chains. The company has filed for tax incentives for Project Crystal Sun, a proposed $10.1 billion solar manufacturing campus in Fort Bend County, southwest of Houston. The project could create 9,712 permanent jobs and begin commercial production in early 2029, according to documents filed with Texas authorities.

The filing is still an early step. Tesla says it is also considering other sites in the U.S. That means the $10.1 billion investment is not yet a final construction commitment.

Still, the proposal is significant. It would give Tesla a much larger role in solar manufacturing at a time when the U.S. is trying to build more domestic clean energy supply chains.

Inside Tesla’s $10.1B Solar Manufacturing Campus

Project Crystal Sun would cover about 3,050 acres near Richmond, Texas. Tesla’s filing puts the total investment at $10.116 billion, including about $1.5 billion in real property and $8.6 billion in equipment.

Tesla plans to spend the money between 2026 and 2028. Commercial production would then begin in the first quarter of 2029.

The proposed site would be vertically integrated. The facility would handle several stages of solar production, including ingot manufacturing, wafer production, cell coating, metallization, printing, and testing. It would also include cleanrooms and equipment for producing finished solar products.

Tesla has not disclosed the plant’s planned annual output in the filing. That makes it difficult to compare the project’s future production directly with existing U.S. solar factories.

However, the size of the investment is clear. At $10.1 billion, Project Crystal Sun would become one of Tesla’s largest manufacturing projects outside its vehicle and battery operations.

Tesla Project Crystal Sun map
Source: Tesla Filing

Tesla Wants to Build a Homegrown Solar Supply Chain

The proposed factory also fits Tesla’s wider push to expand solar manufacturing in the U.S. CEO Elon Musk has said Tesla and SpaceX are working toward 100 GW of solar manufacturing capacity per year in the U.S. by 2028. Reuters reported in February that Tesla was hiring to support this target.

That goal is far larger than Tesla’s current solar manufacturing base. The carmaker has already started customer deployments of its first in-house designed solar panel from Gigafactory New York.

The company said the panel has 18 individual power zones, or three times as many as a conventional residential panel. This design allows the panel to keep producing energy in shaded conditions.

The company has also been expanding its energy manufacturing network. Its Q1 2026 update listed 40 GWh of installed annual Megapack capacity in California and 20 GWh in Shanghai. A new Megafactory outside Houston was under construction, with production of Megapack 3 expected to begin later in 2026.

Project Crystal Sun would add another major piece to that energy strategy. 

Tesla (TSLA) stock was trading lower around the time of this massive solar project news, reflecting broader investor pressure on the stock. The move was not directly tied to the solar factory filing, and market attention has also focused on Tesla’s heavy spending plans and its broader AI, robotics, and energy strategy. Thus, the stock movement can be viewed as part of a wider market reaction rather than a direct response to the $10.1 billion solar project.

Tesla TSLA stock

Solar’s Global Boom Creates a Bigger Manufacturing Race

Tesla’s move comes as solar power continues to expand at record speed.

The International Energy Agency (IEA) said global solar PV capacity additions surpassed 600 GW in 2025. Solar accounted for more than 75% of all new renewable power capacity added worldwide that year. Global solar PV capacity reached about 2,800 GW.

The outlook remains strong. The IEA expects renewable power capacity to grow by almost 4,600 GW between 2025 and 2030. Solar PV is expected to provide nearly 80% of that expansion.

The agency also expects solar PV generation to increase by more than 600 TWh per year on average through 2030. Solar is expected to overtake wind and nuclear in electricity generation by 2026 and hydropower by 2029, as seen below.

global electricity generation by source 2030 IEA
Source: IEA

This growth creates a large market for solar equipment. It also makes manufacturing capacity more important as governments try to reduce supply-chain risks.

China Still Dominates Solar Manufacturing

Building a large U.S. solar factory would also help Tesla address one of the industry’s biggest challenges: China’s dominance of the supply chain.

China remains the world’s leading producer of solar manufacturing equipment and components. In April, China produced more than 80% of global solar panel components. Tesla’s own supply strategy shows how difficult it can be to reduce that dependence.

Reuters reported in March that Tesla was in talks with Chinese companies over about $2.9 billion in solar manufacturing equipment for its U.S. expansion. The equipment could support the company’s push toward its 100-GW manufacturing goal.

That creates an interesting contrast. Tesla wants to build more solar products in America. Yet, some of the equipment needed to build those products may still come from China.

Project Crystal Sun could eventually reduce that dependence if Tesla develops a fully domestic supply chain around the plant.

Tesla’s Energy Business Is Becoming a Bigger Growth Engine

The solar factory would also support a business that is becoming a larger part of Tesla’s financial results. The company’s energy generation and storage revenue reached $12.77 billion in 2025, up 27% from 2024. The increase was mainly driven by higher Megapack and Powerwall deployments.

Energy storage has continued to grow in 2026. Tesla deployed 13.5 GWh of energy storage products in the second quarter of 2026. That brought the company’s total storage deployments for the first half of the year to at least 22.3 GWh, based on its reported Q1 and Q2 figures.

Tesla energy storage business growth 2026
Source: Tesla

For comparison, Tesla deployed 46.7 GWh of energy storage products during all of 2025.

Solar and batteries are closely linked in Tesla’s energy strategy. Solar generation produces electricity, while battery systems such as Megapack can store that electricity for later use.

That combination could become more valuable as electricity demand rises and grids add more variable renewable power.

A Bigger Solar Footprint Brings a Bigger Climate Test

The project also fits Tesla’s wider environmental mission. The EV giant’s latest Impact Report says its customers avoided 37 million metric tons of CO2e emissions in 2025 through the use of its products. The company says its mission is to build an energy system powered by solar energy and supported by batteries and electric vehicles.

Tesla has also linked its energy products to broader grid needs.

In its 2025 financial materials, the company said Megapack can help increase the use of existing generation and transmission capacity. Tesla also said that pairing Megapack with solar PV can make it cost-competitive with traditional fossil-fuel generation assets and allow faster deployment.

These efforts support Tesla’s broader emissions reduction goals. But the new factory itself would also create environmental impacts from construction, energy use, and manufacturing. That distinction matters. A solar factory can support clean energy deployment while still having its own industrial emissions and resource needs.

Tesla Project Crystal Sun in texas

Project Crystal Sun Could Redefine Tesla Energy

Project Crystal Sun marks a major potential expansion of Tesla’s clean energy business. The company already has a growing battery operation, and its energy generation and storage revenue have increased.

If Tesla builds Project Crystal Sun as proposed, it could move beyond selling solar and batteries and become a major U.S. solar manufacturer.

For now, however, the $10.1 billion figure remains a proposed investment, not a completed project. The next steps will be Tesla’s final site decision, approval of the Texas incentives, and the start of construction.

If those steps happen, Project Crystal Sun could become one of the clearest signs yet that Tesla’s future energy business is moving from a supporting operation toward a much larger part of the company’s strategy.

Copper Prices Surge Past $14,800: Will New Mines Help Ease the Supply Crunch?

Saptakee S
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Copper Prices Surge Past $14,800: Will New Mines Help Ease the Supply Crunch?

Copper prices reached a new high on the Comex as softer US inflation eased fears of interest rate hikes. Shrinking inventories in London also indicate that supply is tightening.

On August 12, Comex copper prices hit $6.7140 a pound, or about $14,802 a tonne, surpassing the previous record of $6.7045 set on August 5. It later eased to $6.6335 a pound.

This surge followed the US July Consumer Price Index, which showed inflation at 3.4% year over year, down from 3.5% in June. Core inflation was 2.5%. This data lessened the Federal Reserve’s urgency to raise rates in September, supporting commodities and risk assets.

But copper’s rise isn’t just about interest rates. The physical market is sending a stronger signal.

copper futures copper prices

LME Copper Premium Widens as Inventories Fall

London copper has moved into deeper backwardation, meaning buyers pay more for immediate metal than for future delivery.

Cash copper on the London Metal Exchange settled at $14,424.50 a tonne, compared to $14,217 for the three-month contract. The resulting $207.50 premium was the widest of 2026, up from $138 a day earlier and just $34 at the end of July.

This spread indicates that consumers and traders are competing for available metal.

  • LME warehouse stocks have also fallen sharply. Inventories stood at 214,550 tonnes, down over 35,000 tonnes, or about 14%, since the end of July.
  • Reuters noted that LME stocks have dropped from about 401,000 tonnes in early May, with 58% of the remaining inventory tied up in cancelled warrants awaiting removal.
LME copper prices
Source: LME

Copper Supply Problems Are Multiplying

Copper producers are struggling to boost output quickly enough to meet market needs.

Chile, the world’s largest copper producer, has cut its production outlook for the second straight quarter due to weaker output at major mines. Codelco, the state-owned producer, faces aging operations, high debt, and a need for major investment.

  • The company expects 2026 copper production between 1.331 million and 1.357 million tonnes.

Chile’s supply issues are significant because the global copper market has little room for disruption.

  • The International Copper Study Group expects global mine production to grow just 1.6% in 2026, down from an earlier forecast of 2.3%. Growth is expected to improve to 2.3% in 2027.

COPPER DEMAND

Indonesia adds another risk. The Gresik smelter, processing ore from Freeport’s Grasberg mine, remains offline due to a boiler leak reported on August 8. Any prolonged outage could limit the availability of refined copper in Asia.

The Democratic Republic of Congo has also tightened its grip on supply. Kinshasa recently banned exports of copper and cobalt concentrates, allowing limited exceptions. Reuters stated this may not significantly impact the global balance but could tighten an already stressed concentrate market.

Copper Demand Is Moving Beyond Construction

Copper demand is increasingly linked to electrification.

Power grids, electric vehicles, renewable energy projects, energy storage, industrial equipment, and data centers all require significant copper.

The rapid growth of artificial intelligence is creating an additional demand driver. AI data centers need electricity-intensive computing equipment, transmission infrastructure, transformers, cables, and backup power systems. Rising data center investment could boost copper consumption across the power network.

  • The ICSG expects global refined copper usage to rise 1.6% in 2026 and 2% in 2027. Chinese demand is expected to rise about 1.9% this year, while consumption outside China is forecast to grow 1.3%.

The group noted that energy transition, urbanization, digitalization, and data center development will continue to support copper demand.

There is a key difference between the short-term and long-term outlook.

The institute still sees a refined copper surplus of about 96,000 tonnes in 2026 and 377,000 tonnes in 2027. This could limit prices if production improves and demand weakens, but forecasts are sensitive to mine disruptions, inventory changes, and Chinese stock levels.

The longer-term picture looks much tighter.

  • The International Energy Agency estimates that the copper market could face a 30% supply deficit by 2035 under the current project pipeline.

Copper ore grades have dropped by about 40% since 1991, while average capital intensity for brownfield expansions has risen 65% since 2020. New copper projects can take around 17 years from discovery to production.

This makes today’s high prices less important than the industry’s ability to create new supply.

COPPER DEMAND SUPPLY
Source: ICSG

Copper Miners Are Benefiting

Higher copper prices are improving the outlook for major producers.

Southern Copper Corporation has emerged as one of the strongest large-cap names. The company reported $4.289 billion in second-quarter 2026 revenue, up 41% year over year, with earnings rising 71% to $2.01 a share. The stock is seen as a potential breakout candidate, driven by strong copper demand from AI infrastructure and grid investment.

Freeport-McMoRan remains another major player. BHP, Rio Tinto, First Quantum Minerals, Ivanhoe Mines, and Lundin Mining also offer investors direct exposure to copper production.

Recent market pricing shows First Quantum, BHP, and Rio Tinto among the stronger copper-related large-cap names, while the broader Global X Copper Miners ETF continues to benefit from the copper rally.

Investors should note that mining stocks do not simply track copper prices. Costs, production guidance, political risk, debt, and project execution can lead to large differences in returns.

Refer to the infographic below for their latest copper output and market cap data:

tOP COPPER PRODUCERS

Fresh Deals Show Miners Are Racing for Copper

The industry’s deal activity reflects the growing value of copper assets.

Hudbay Minerals

In June, Hudbay Minerals completed its acquisition of Arizona Sonoran Copper, creating what the company calls the third-largest copper district in North America. Arizona Sonoran is now wholly owned by Hudbay.

Anglo American

Anglo American and Codelco finalized their agreement to combine the Los Bronces and Andina mine plans in Chile. This project is expected to unlock 2.7 million tonnes of additional copper over 21 years, or about 120,000 tonnes a year, pending environmental permits.

Meanwhile, Anglo American and Teck Resources are moving forward with their merger to create Anglo Teck, a major copper-focused mining group expecting over 70% exposure to copper.

Hindustan Copper

India is also deepening its involvement in the global copper supply chain. The country currently produces about 573,000 tonnes of refined copper annually, against a demand of around 1.8 million tonnes, according to Reuters.

Hindustan Copper is discussing potential cooperation with Chile’s Codelco to secure copper supply and explore mining opportunities.

Long-Delayed Copper Projects Could Unlock New Supply

Two delayed projects are gaining attention.

Papua New Guinea, Bougainville

In Papua New Guinea, Bougainville has chosen India’s Lloyds Metals & Energy for preparatory and feasibility work at the Panguna copper-gold mine. The project has estimated remaining resources of about 5.3 million tonnes of copper and 19.3 million ounces of gold. Lloyds previously set up a dedicated vehicle to pursue cooperation on the project.

Panguna has been closed since 1989 due to conflict over environmental damage, revenue sharing, and local control. Reopening the mine will need more than just capital. Community support, regulatory approvals, and political agreements are critical.

Tampakan Copper-Gold Project

In the Philippines, the Tampakan copper-gold project aims for production by 2028. The mine expects to produce about 375,000 tonnes of copper and 360,000 ounces of gold annually for 17 years.

These projects highlight a central issue for the copper market: the world has large deposits, but turning them into producing mines takes years.

Copper Outlook: Bullish, but Volatile

Strong fundamentals support copper’s record run.

Near-term prices benefit from falling LME inventories, tight physical premiums, supply disruptions, and the US premium. A softer inflation reading has also eased fears of higher US interest rates.

Longer term, demand is even stronger. AI data centers, grid expansion, electric vehicles, renewable energy, and industrial electrification are increasing copper needs at a time when new mines are more challenging and costly to develop.

The biggest risk is that high prices may weaken demand or spur enough new supply to create a temporary surplus. The ICSG’s projected surpluses for 2026 and 2027 show this is still possible.

Still, the structural landscape is shifting. The market increasingly rewards companies that own producing copper assets, while major miners are paying up for future supply.

For investors, the copper story is not just about the next price target. It’s evolving into a race for secure, long-term resources.

Zambia, Brazil, and Ecuador Accelerate Carbon Markets as Article 6 Gains Ground

Jennifer L
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Zambia, Brazil, and Ecuador Accelerate Carbon Markets as Article 6 Gains Ground

Carbon markets are entering a new stage. Governments are moving beyond climate plans and building systems to issue, track, and trade carbon credits. Three developments this week show how fast this shift is happening.

Zambia has launched an operational national carbon registry for Article 6 projects. Brazil plans to approve its first carbon credit methodologies under its future emissions trading system by the end of 2026. It is also considering deeper Article 6 cooperation with China. Ecuador’s National Assembly has approved reforms that would give carbon markets a legal basis.

The three moves are different, but they show the same trend. Governments are taking a bigger role in tracking, approving and trading carbon credits.

Carbon Pricing Is Moving From Policy to Infrastructure

These developments come as carbon pricing expands around the world. The World Bank’s State and Trends of Carbon Pricing 2026 found that 87 carbon pricing policies were operating globally. Direct carbon pricing now covers more than 29% of global greenhouse gas emissions. It also generated more than $107 billion in public revenue in 2025.

The report also found that carbon credit issuance rose 8% between 2024 and 2025. Carbon prices, however, fell slightly overall. Higher-quality credits still earned price premiums. This is making the carbon market more demanding for countries that want to increase credit supply.

carbon pricing trend world bank 2026
Source: World Bank

Governments need more than carbon projects. They also need clear rules for approval, measurement, reporting and verification. They need registries, accounting systems and safeguards.

Zambia, Brazil and Ecuador are now building these systems.

Zambia Switches On Its Article 6 Carbon Registry

Zambia launched an operational national carbon registry on August 7 for projects under Article 6 of the Paris Agreement. The system is also expected to support voluntary carbon market projects.

The registry is part of Zambia’s wider carbon market system. The Zambia Environmental Management Agency (ZEMA) will administer it.

Zambia’s 2026 regulations require ZEMA to maintain the National Carbon Registry as part of the country’s measurement, reporting, and verification system. The registry will hold information on carbon credit projects and activities across the country.

This is an important step. A national registry helps governments track carbon units from project registration to issuance, transfer, and cancellation.

Zambia has also built a legal base for its carbon market. Its Green Economy and Climate Change Act No. 18 of 2024 regulates carbon markets and brings the Paris Agreement into national law.

Dr. Douty Chibamba, Permanent Secretary of the Zambian Ministry of Green Economy and Environment, remarked during the launch:

“Zambia’s Carbon Registry is fully online, demonstrating our integrity and strong commitment to accountability and transparency. We will ensure that all activities conform to the provisions of Zambia’s Green Economy and Climate Change Act and the Paris Agreement, and that actions related to our carbon credits are visible and can be reviewed by members of the public.”

The country’s carbon market framework covers both Article 6 activities and voluntary projects. It also includes rules for corresponding adjustments, fees, and the move of existing voluntary projects into Article 6 structures.

zambia carbon registry
Source: ZEMA

Zambia is also building international Article 6 ties. Its government signed an Article 6 cooperation agreement with Switzerland at COP30. Norway and Zambia also finalized cooperation covering credits from renewable power projects.

The new registry gives the Southern African country a stronger base to expand these activities.

Brazil Builds a Future Emissions Market

Brazil is taking a different approach. The country is building the Brazilian System for Emissions Trading, or SBCE, after passing Law 15.042/2024. The system will create a national cap-and-trade market. It will include rules for large emitters, emissions monitoring and reporting, and a central registry.

Brazil now plans to approve its first carbon credit methodologies under the future ETS by the end of 2026, according to a Brazilian official. 

These methodologies are important. They set the rules for measuring emission reductions and removals. They also determine how those results can become eligible carbon units.

Brazil is also working on rules for international transfers under Article 6.2. In July, the government opened a public consultation on a draft resolution covering the approval and transfer of Internationally Transferred Mitigation Outcomes, or ITMOs. The proposal would connect ITMO approvals to the SBCE and require mitigation outcomes to be recorded in the system.

  • The draft framework targets a reduction of 100 million tonnes of CO2e between 2031 and 2035. Up to 50 million tonnes could be approved for international transfer as ITMOs.

Brazil is also interested in an Article 6.2 memorandum of understanding with China. A deal could create another channel for ITMO transfers between two of the world’s largest economies.

Ecuador Revives Its Push for a Legal Carbon Market

Ecuador is taking another step after an earlier setback. The National Assembly recently approved reforms that would create a legal basis for carbon markets. The legislation now awaits the signature of President Daniel Noboa. News agencies reported that Noboa vetoed similar legislation in 2024.

The latest reform has gone through an extended legislative process.

Ecuador’s National Assembly said the proposed changes would separate regulated carbon markets, voluntary carbon markets and non-market approaches. The draft also proposes a National Climate Change Registry to track climate projects and carbon market transactions.

The reforms seek to improve transparency and tracking. They would also give Ecuador a clearer legal basis for taking part in international climate finance markets. This could be important for a country with large forests and other natural ecosystems.

Ecuador carbon asset potential
Source: Ecuador Brief

The legislation also includes safeguards. Parliamentary discussions have focused on protecting Indigenous and local communities, ensuring fair benefit sharing and preventing the same emission reduction from being counted twice.

The reforms seek to open the market while giving the government greater oversight.

Article 6 Moves Toward Real-World Trading

These three developments also show how Article 6 is changing.

Article 6.2 allows countries to cooperate through internationally transferred mitigation outcomes. When a country approves an emission reduction for international transfer, it must apply a corresponding adjustment. This prevents the same emission reduction from counting toward the climate targets of two countries.

That rule makes national tracking systems essential. Governments need to know which credits exist, where they came from, and whether they have been approved for international use. They also need to track whether units have already been transferred or cancelled.

The UNFCCC’s Article 6 framework now includes detailed rules for reporting and reviewing these cooperative approaches. This is why registries, carbon credit methodologies and approval systems are becoming so important.

Quality Will Matter More as Markets Grow

The rapid growth of national carbon systems raises an important question: will buyers trust the credits?

The World Bank says the carbon credit market is becoming more focused on credit quality. Issuance increased 8% from 2024 to 2025, but prices fell slightly overall. Credits linked to international aviation and highly rated forest conservation and reforestation projects continued to earn price premiums.

This means countries cannot rely only on producing large numbers of credits. They need strong measurement systems and clear safeguards. They also need registries that provide reliable tracking.

Three Countries Show Where Carbon Markets Are Heading

Zambia, Brazil and Ecuador are at different stages. Each country is addressing a different part of the same challenge. Yet, their recent actions show how carbon markets are changing.

Zambia is putting market infrastructure into operation. Brazil is building a large future compliance market and preparing for international Article 6 transfers. Ecuador is working to create the legal certainty needed for carbon market activity after years of political and legal challenges.

If these systems work as planned, these three nations could become important participants in the next stage of international carbon markets. The message they are sending is straightforward: carbon markets are moving beyond policy plans. Governments are now building the registries, rules and legal systems needed to make carbon trading work at scale.

Temasek-Backed GenZero Reports 4.4 MtCO₂e Climate Impact as Carbon Credit Demand Shifts

Saptakee S
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0
Temasek-Backed GenZero Reports 4.4 MtCO₂e Climate Impact as Carbon Credit Demand Shifts

The Temasek-owned GenZero is putting commercial viability at the center of its climate investment strategy as demand grows for high-quality carbon credits, carbon removals and scalable climate technologies.

  • The company reported 1.4 million metric tons of carbon dioxide equivalent (MtCO₂e) in direct realized climate impact in 2025.
  • That lifted its cumulative direct impact to 4.4 MtCO₂e between 2022 and 2025, based on GenZero’s stake-adjusted measurement.

Direct realized impact increased 47% from the previous year. When direct and indirect impacts are combined, GenZero said its portfolio generated 8.3 MtCO₂e of realized climate impact in 2025.

The results come at an important point for the carbon market. Buyers still want credits, but they are becoming more selective. At the same time, project developers need long-term commitments to finance projects that may take years to generate credits.

That is pushing the market toward a new model: climate projects must show both measurable environmental benefits and a credible path to commercial scale.

Carbon Footprint and Climate Impact Data

bezero climate impact
Source: GenZero

GenZero Expands Its Global Climate Portfolio

GenZero outlined its progress in its second Sustainability Report, Steadfast in Shifting Times. The company now has 26 closed investments across 26 countries, covering climate technology, nature-based solutions and carbon-market infrastructure.

Overall, nature remains an important part of the strategy.

Expanding Sustainable Land Management

More than 900,000 hectares are now under sustainable management through GenZero-backed investments. That is up from about 750,000 hectares at the end of 2024 and equals almost 13 times the land area of Singapore.

These projects can deliver more than carbon benefits. Forest conservation, restoration and sustainable land management can also support biodiversity, improve ecosystems and create economic opportunities.

be zero Temasek
Source: GenZero

Stronger Impact Measurement

GenZero has also strengthened how it measures portfolio performance. The share of portfolio companies measuring Scope 1 and Scope 2 emissions increased by 35 percentage points to 58% for the financial year ended March 31, 2025. More than 2,100 jobs were also created across investee companies under its expanded impact framework.

Climate Investment Is Becoming More Commercial

The bigger shift, however, is in how investors approach climate solutions.

Early-stage climate companies once attracted funding largely because of their emissions-reduction potential. Today, investors increasingly want to know whether those solutions can compete on cost, scale production, and generate reliable revenue.

GenZero calls this approach “principled pragmatism.”

The strategy reflects a tougher climate investment environment. Higher financing costs, supply-chain challenges, and policy uncertainty have made it harder for emerging technologies to move from pilot projects to commercial operations.

At the same time, demand for climate solutions continues to grow.

Rising electricity consumption, including demand linked to artificial intelligence and data centers, is increasing pressure on businesses to manage both energy costs and emissions. As a result, technologies that can cut emissions without adding high costs could gain an advantage.

Carbon Market Capital Is Moving Into Future Supply

This commercial focus also fits a major change taking place in carbon markets.

MSCI found that total tracked investment and offtake activity in the global carbon-credit market reached $22 billion in 2025, a 72% increase from 2024. However, the market recorded fewer deals, showing that larger transactions are driving growth.

More importantly, buyers are increasingly securing future supply.

  • $12.3 billion went into carbon-credit offtake agreements in 2025.
  • Offtakes exceeded direct investment for the first time.
  • Forward agreements and pre-purchases represented 66% of offtake value.
  • Corporate carbon-market activity reached $11.4 billion.

The trend matters for project developers. A long-term offtake can provide predictable future revenue, making it easier to raise capital and build projects.

It also shows that large buyers are becoming more proactive. Instead of waiting for credits to reach the market, companies are increasingly helping secure future supply from projects they consider strategically important.

GenZero’s Low-Carbon Cement Targets a Major Source of Emissions

GenZero’s investment in Terra CO2 shows how this strategy is taking shape.

The company represents GenZero’s first investment in the built environment sector. Terra CO2 develops lower-carbon cementitious materials using locally available feedstocks.

The opportunity is significant because cement remains one of the hardest industrial sectors to decarbonize. Traditional cement production emits pollutants from both fuel combustion and the chemical processes used to make clinker.

Therefore, replacing some conventional cement with lower-carbon alternatives could reduce emissions without forcing builders to change how they construct buildings completely.

The challenge is cost.

If low-carbon materials cannot compete with conventional products, adoption will remain limited. GenZero’s investment reflects the growing focus on solutions that can address emissions while also making commercial sense.

Nature Restoration Attracts More Capital

GenZero is also expanding its nature-based investments. Its first investment in Brazil came through The Reforestation Fund, which targets the conservation, restoration and reforestation of 270,000 hectares of degraded land across Latin America.

Nature projects have become an increasingly important part of the carbon market. However, buyers now demand stronger evidence that projects deliver real and lasting climate benefits.

That is changing where capital goes.

  • MSCI found that nature restoration attracted $10.1 billion of investment and offtake activity in 2025, more than double its 2024 level.
  • Carbon engineering attracted another $10.3 billion. Together, the two categories accounted for 93% of tracked carbon-market deal activity.

The numbers suggest that buyers are concentrating capital around carbon removal and nature projects rather than spreading funding evenly across the market.

Carbon Credits and Sustainable Agriculture

GenZero’s involvement in sustainable agriculture highlights another important trend. The Good Rice Alliance significantly secured a long-term agreement with Amazon for more than 680,000 tCO₂e of carbon credits from methane-reduction projects in India.

Rice cultivation can generate methane when farmers flood fields. Improved water management can reduce those emissions while maintaining rice production.

Long-term agreements can give developers greater revenue visibility before credits reach the market. They can also help projects secure financing and scale operations.

Demans for Future supply

This demand for future supply is particularly important for carbon removal.

carbon credit demand and supply offtakes
Source: Carbon Direct

That creates a clear financing gap.

The market may have a growing pipeline of future carbon removal projects, but developers still need buyers willing to commit before those projects are fully operational.

Blended Finance Opens Another Route

In this domain, the company participated in a $91 million blended finance package for the Imperative Spekboom Ecosystem Restoration Project. The structure combines a World Bank Outcome Bond with a streaming facility involving GenZero and other investors.

Blended finance can reduce some of the risks that discourage traditional investors from entering climate and nature projects.

That could become increasingly important as developers seek larger amounts of capital to build climate infrastructure.

Building a Stronger Carbon Market

However, GenZero’s work extends beyond individual investments. It launched the Action for a Resilient Climate Coalition to help mobilize funding for high-quality climate projects. It also expanded its Green Fuel Forward initiative to 45 participating organizations to support demand for sustainable aviation fuel certificates across Asia-Pacific.

GenZero also joined the All Aboard Coalition and became part of the steering committee for the ASEAN Common Carbon Framework.

These initiatives reflect a broader goal: building the infrastructure needed for climate finance to grow.

The carbon market still faces challenges around credit quality, transparency, and inconsistent rules. Carbon Direct found that carbon removal represented only 6% of voluntary carbon credits in its 2026 analysis, while fewer than 10% of the projects it reviewed met its high-quality thresholds with minimal reservations.

That scarcity could make high-quality projects more valuable as corporate demand increases.

The Next Stage of Climate Finance

GenZero’s 4.4 MtCO₂e of cumulative direct climate impact shows how its portfolio has grown since 2022. More importantly, its strategy reflects where climate finance may be heading next.

The market is no longer focused only on generating more carbon credits. Buyers want better credits. Investors want stronger projects. Developers need reliable offtake agreements. Climate technologies must also prove that they can operate as sustainable businesses.

GenZero’s investments in low-carbon cement, reforestation, sustainable agriculture and climate finance show how these priorities can come together.

The carbon market’s next growth phase may therefore look different from its earlier years. Instead of relying mainly on spot purchases, companies are increasingly using long-term offtakes and pre-purchases to secure future supply.

That shift could benefit projects with strong measurement, credible climate claims and clear commercial models.

  A market for two gigatonnes of CDR by 2050?

carbon market future
Source: Carbon Direct

As carbon markets mature, the winners may not simply be projects that promise the largest emissions reductions. They will be projects that can prove their impact, attract long-term buyers and scale economically.

For investors like GenZero, that combination could become the defining test of the next generation of climate solutions.

Nvidia (NVDA Stock) to Invest $3 Billion on Lancium as AI Race Turns Into a Power Race

Jennifer L
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0
Nvidia (NVDA Stock) to Invest $3 Billion on Lancium as AI Race Turns Into a Power Race

Nvidia is preparing to invest up to $3 billion in Lancium, a Texas-based power infrastructure developer tied to the Stargate AI data center project. The investment would give the big tech a direct stake in the infrastructure needed to power the next wave of artificial intelligence (AI) computing. It also shows how the AI boom is shifting from a race for chips to a race for electricity, land, and grid connections.

According to Reuters, Nvidia would invest $2 billion initially for about a 20% stake in Lancium. The company could add $1 billion if Lancium meets specific conditions. This includes securing more grid connections. The deal would value Lancium and its land and power assets at about $10 billion.

The move comes as data center developers face growing pressure to secure reliable power for increasingly energy-intensive AI systems.

Nvidia Moves Deeper Into AI Power Infrastructure

Nvidia has built its business around the processors that power AI systems. Its latest Lancium investment takes that strategy further by moving into the infrastructure needed to run those processors.

Lancium develops large data center campuses and power infrastructure. Its flagship site is the Lancium Clean Campus in Abilene, Texas, which serves as the first operational site of the Stargate initiative. Reuters says the campus covers about 1,000 acres.

Lancium says the Abilene campus has a 1.2-gigawatt grid interconnection that has been approved by ERCOT. The company is also developing other gigawatt-scale AI campuses, including a 1.0 GW campus in Childress, Texas, announced in July.

The scale matters because modern AI data centers can require enormous amounts of electricity. Securing a site with power capacity already available can reduce one of the biggest barriers to expanding AI infrastructure. The investment, therefore, gives Nvidia exposure to a part of the AI supply chain that sits behind the GPUs themselves.

How NVDA Stock Reacts?

Nvidia shares fell about 3% in the trading session following reports of the potential Lancium investment. The decline came as investors weighed the scale of Nvidia’s growing commitments to AI infrastructure, even as the company continues to benefit from strong demand for its AI chips.

Nvidia NVDA stock price

The market reaction highlights a key concern around the AI buildout: Nvidia is increasingly investing not only in the hardware that powers AI, but also in the infrastructure needed to support its customers’ massive computing expansion.

AI Is Creating a New Electricity Demand Surge

The timing reflects a major change in global electricity demand.

The International Energy Agency estimates that data center electricity use will more than double. By 2030, it will reach about 945 terawatt-hours (TWh), up from around 415 TWh in 2024. That would represent almost 3% of global electricity consumption by the end of the decade.

AI is the main driver of this growth. The agency also expects electricity use from accelerated servers, which are mainly used for AI workloads, to grow by about 30% per year through 2030. The United States is set for strong growth. Data centers will make up almost half of the rise in U.S. electricity demand by 2030.

US data centers electricity use 2030
Source: Smith, S., et al. (2026, June 18). United States Data Center Energy Usage Report: 2025 Update, LBNL

This creates a new challenge for technology companies.

Building more GPUs does not help if data centers cannot obtain enough electricity to operate them. As a result, power availability, grid connections, and the speed of new infrastructure construction are becoming strategic issues for the AI industry.

Why Texas Is Becoming AI’s Power Capital

Texas is emerging as one of the most important locations for this infrastructure build-out.

Lancium’s Abilene campus already has a 1.2 GW interconnection, while the company’s broader portfolio includes multiple gigawatt-scale sites. The Abilene campus is also connected to the Stargate project backed by OpenAI, Oracle and SoftBank.

Crusoe, a clean energy and AI infrastructure innovator, is expanding the site. The second construction phase adds six more buildings. This brings the total to eight buildings, covering about 4 million square feet and providing 1.2 GW of power capacity.

Lancium’s strategy is built around combining large-scale data centers with power infrastructure and grid management.

Its website says the company is developing campuses that can integrate renewable energy and use power-management systems to support grid reliability. That approach could become increasingly important as large AI loads are added to electricity systems.

The broader U.S. power market is already responding. The U.S. Energy Information Administration forecasts electricity use will hit a record 4,268 billion kilowatt-hours in 2026. It will rise to 4,391 billion kWh in 2027. AI and data centers are key drivers of this growth in industrial and commercial demand.

Nvidia Has the Financial Firepower to Chase AI’s Next Bottleneck

Nvidia has strong financial capacity to make investments of this size. The company reported $81.6 billion in revenue in the first quarter of fiscal 2027, up 85% from a year earlier. Data Center revenue reached $75.2 billion, up 92% year over year.

That growth explains why securing power has become strategically important.

Nvidia’s fiscal 2026 revenue reached $215.9 billion, up 65% from the previous year. Data Center revenue in the fourth quarter alone reached $62.3 billion, up 75% year over year.

NVIDIA financial results 2025
Source: NVIDIA

The company is thus selling increasingly powerful AI systems into a market that requires increasingly large amounts of electricity.

Investing in Lancium could help Nvidia strengthen its position across that growing infrastructure chain. It also fits with Nvidia’s broader push to make AI data centers more efficient and responsive to power constraints.

Nvidia’s Climate Goals Face a Bigger Test

The investment also creates an important environmental question. Nvidia says it matched 100% of its global electricity use with clean electricity in FY2026 for sites under its operational control. Its clean electricity sourcing includes on-site solar, power purchase agreements, renewable utility tariffs and energy attribute certificates.

The company has also adopted science-based emissions targets validated by the Science Based Targets initiative.

Nvidia aims to reduce absolute Scope 1 and Scope 2 market-based emissions by 50% by FY2030, using FY2023 as the base year. It also aims to reduce the emissions intensity of Scope 3 emissions from the use of its sold GPUs by 75% per PFLOP by FY2030.

NVIDIA GHG emissions 2026

However, the company’s broader emissions challenge is becoming larger as its AI business expands. It reported 10.7 million metric tons of Scope 3 emissions in FY2026, according to its sustainability disclosures. That was almost three times its FY2024 Scope 3 figure of 3.64 million tons.

This makes the power infrastructure behind AI increasingly important to Nvidia’s environmental story.

Matching its own electricity use with clean electricity addresses operational emissions, but much of Nvidia’s footprint sits in its wider value chain. The company’s FY2026 report says it is improving its Scope 3 methodology by using more supplier-specific data to identify emissions-reduction opportunities.

Clean Power Will Be Critical to AI Growth

The Lancium investment comes at a time when the energy mix supporting AI data centers is also changing.

The IEA expects renewables to meet about half of the growth in global data center electricity demand through 2035. Natural gas will also play a major role, while nuclear power is expected to become more important later in the decade. That creates both an opportunity and a challenge.

AI companies need electricity that is available around the clock. Renewable power can provide a large share of that supply, but data centers may also need storage, grid connections and dispatchable generation to maintain reliability.

Lancium’s model is built around this broader power challenge. Its Abilene campus combines a large grid connection with power-management systems and plans for integrated renewable energy.

For Nvidia, that could help address one of the biggest constraints facing future AI deployment. Its investment gives it a deeper connection to that infrastructure.

Ultimately, the Nvidia-Lancium deal suggests the tech giant wants to secure a position on both sides of the equation: building the machines that power AI and helping secure the electricity infrastructure needed to run them.

Sila Nanotechnologies Lands $1.4B U.S. DoD Backing to Challenge China’s Battery Supply Chain

Jennifer L
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Sila Nanotechnologies Lands $1.4B U.S. DoD Backing to Challenge China’s Battery Supply Chain

Sila Nanotechnologies has received a conditional loan commitment of up to $1.4 billion from the U.S. Department of Defense to expand production of silicon-carbon battery anodes and lithium-ion battery cells. The funding could accelerate one of the largest efforts to build a U.S.-based alternative to China’s dominant battery supply chain.

Sila plans to expand its Moses Lake, Washington, facility and develop a new battery-cell manufacturing operation. The project will serve various markets. This includes electric vehicles (EVs), energy storage, military drones, and other defense applications.

The deal comes as battery demand grows and governments focus more on supply security. It also shows how advanced battery materials are becoming important for both the clean energy transition and national security.

$1.4 Billion Loan Supports U.S. Battery Production

The Pentagon announced the conditional loan commitment on August 7. The financing will support the expansion of Sila’s silicon-carbon anode facility in Moses Lake and a new lithium-ion battery cell facility.

The battery-cell operation could serve specialty markets, including industrial, agricultural and military drones. The project will also support battery applications in energy storage, AI and data centers.

The $1.4 billion is a conditional commitment, not money that Sila has already received in full. The company must meet additional requirements before the financing can close.

The announcement follows a $300 million private funding round announced by Sila in July. The company said the funding would support its Phase 2 expansion and the ramp-up of its Moses Lake operations.

Together, the private financing and federal commitment give Sila significant capital to move from early commercial production toward larger-scale manufacturing.

Silicon Anodes Could Pack More Power Into Smaller Batteries

Sila’s main technology is its Titan Silicon silicon-carbon anode. Silicon can store more lithium than graphite, which gives it the potential to increase battery energy density.

Sila titan silicon patent
Source: Sila Presentation by Gleb Yushin, CTO and Co-Founder

Sila says Titan Silicon can deliver a 20% energy-density gain while also supporting rapid charging. The company markets the technology for EVs, defense systems, data centers and robotics.

Higher energy density can allow an EV to travel farther without increasing battery size. It can also allow manufacturers to use smaller and lighter batteries for the same amount of energy. That is especially useful for drones and other defense systems, where weight and operating time can affect performance.

Silicon, however, has a technical problem. It expands when it absorbs lithium and contracts when lithium is removed. This can damage the material and shorten battery life. Sila’s silicon-carbon design aims to control this swelling while retaining silicon’s energy storage advantage.

Sila Targets a Weak Spot in China’s Battery Dominance

The strategic importance of Sila’s expansion goes beyond battery performance.

The International Energy Agency says China accounted for more than 80% of global battery cell production in 2025. It also held an even larger share of production for several battery materials. The concentration extends to anode materials, a key component of lithium-ion batteries.

The IEA says U.S. domestic production of anode active material could meet only about one-quarter of U.S. demand by 2035 under its Stated Policies Scenario. The remaining supply would continue to rely on imports from China, Southeast Asia, and South Korea. This dependence has turned battery materials into a strategic issue for governments.

For the U.S., expanding domestic anode production could reduce exposure to trade restrictions, geopolitical tensions, and supply disruptions.

Sila’s technology also offers a different approach. Instead of simply expanding conventional graphite production, it aims to replace part of the graphite anode market with silicon-carbon materials.

Global Battery Demand Continues to Rise

The investment comes as battery demand expands across several markets. The IEA reported that global battery demand grew by more than 35% in 2025, surpassing 1.5 terawatt-hours (TWh). Battery storage was a major driver of that growth, while lithium demand increased by about 25% per year on average over the previous two years.

Industry reports, like the one from the WEF below, project battery demand could increase more than fourfold by 2030 under current policy settings.

global EV battery demand 2030
Source: World Economic Forum

EVs remain the largest source of battery demand. Global EV battery deployment reached 1.2 TWh in 2025, up almost 30% from 2024. The IEA expects it to reach almost 3 TWh by 2030 and around 4 TWh by 2035 under its Current Policies Scenario.

Energy storage adds another major source of demand. This wider market creates opportunities for technologies that can store more energy in smaller and lighter battery systems.

For Sila, that means its potential market extends beyond passenger vehicles. Its technology is also being positioned for drones, robotics, data centers, and other applications where weight, space, and reliable backup power matter.

Sila Is Scaling Toward Gigawatt-Hour Production

Sila’s Moses Lake facility began operations in 2025. The plant covers about 160 acres and more than 600,000 square feet.

The facility initially supports 2–5 GWh of capacity and has been designed to expand to as much as 250 GWh within five years, according to Sila.

The difference between those figures is important. The 2–5 GWh figure refers to the initial operating phase, while 250 GWh is the plant’s longer-term expansion potential.

Sila has built commercial ties with companies like Mercedes-Benz and Panasonic. These partnerships help Sila expand Titan Silicon into larger battery applications. The company now needs to prove that it can scale production while maintaining quality, cost, and reliability.

That will be critical because battery manufacturing is highly competitive. A technology can offer better performance in testing but still faces challenges when production reaches commercial scale.

The Project Has a Lower-Carbon Power Advantage

The Moses Lake facility also has an environmental angle. Sila selected the Washington location partly because of access to hydropower, which supplies the plant’s electricity. Using low-carbon electricity can reduce the emissions linked to battery material production compared with facilities powered mainly by fossil fuels.

The U.S. Department of Energy finished an environmental assessment of the Moses Lake project in 2024. They issued a Finding of No Significant Impact for the project.

However, the project should not be viewed as emissions-free. Battery materials still require industrial processing, raw materials, and energy.

Sila’s public materials reviewed do not identify a corporate net-zero target. Its environmental positioning instead focuses on lower-carbon electricity at Moses Lake and the performance benefits of its battery technology.

Sila Nanotechnologies battery DoD loan

Washington’s Battery Push Is Becoming a National Security Strategy

Sila’s $1.4 billion commitment reflects a wider change in how governments view batteries. Batteries are no longer used only in consumer electronics and EVs. They are increasingly important for energy storage, drones, robotics, AI infrastructure, and military systems.

The U.S. government is therefore supporting domestic battery production as part of a broader effort to strengthen critical supply chains.

For Sila, the opportunity is significant. The company is working to commercialize a silicon-carbon technology. This tech could boost battery performance and reduce reliance on traditional graphite supply chains.

The challenge is now execution.

Sila has an operating plant and a technology that has moved beyond the laboratory. Its Moses Lake facility can initially support 2–5 GWh, while the long-term design allows for expansion to as much as 250 GWh.

If that expansion succeeds, Sila could become an important U.S. supplier of advanced battery materials for EVs, energy storage, and defense.

The Pentagon’s commitment is therefore more than a financing deal. It is part of a broader effort to build a domestic battery industry, strengthen national security, and reduce reliance on a supply chain that remains heavily concentrated in China.

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