Who Will Drive the Next Wave of Carbon Credit Demand? Insights from AlliedOffsets

The voluntary carbon market (VCM) lets companies buy carbon credits to offset their greenhouse gas emissions. AlliedOffsets, a data and technology firm for carbon offsetting, tracks this market closely. Their database covers more than 36,000 projects, over 28,000 buyers, and billions of tons of carbon that have been issued or retired. 

The VCM is growing fast. Over the last five years, most buyers have come from technology, telecommunications, and energy. Other sectors, like industrials, manufacturing, financial services, and aviation, also participate, though in smaller amounts.

The United States, the United Kingdom, France, Germany, and Japan have the most buyers, showing that developed countries lead the market.

As the market grows, new companies and sectors are expected to join. AlliedOffsets studied over 130,000 companies to predict who will likely buy carbon credits next. This helps sellers, project developers, and policymakers focus their efforts where demand is likely.

LtB Model: Predicting the Next Wave of Credit Buyers

AlliedOffsets uses a model called Likelihood to Buy (LtB). It looks at companies active before and since 2024, and even those that have never bought credits publicly. The company stated:

“Ranking specific companies’ likelihoods and identifying patterns in their unifying traits informs market suppliers and intermediaries about who to pivot engagement towards. Understanding the features that play the greatest roles in determining companies’ likelihoods, meanwhile, is vital for highlighting wider drivers for the growth of the market, which serve as levers for policymakers and signals for companies themselves.”

The model includes data from 36 global registries, covering both non-anonymous purchases and retirements. It looks at several key factors that affect a company’s likelihood to buy, including:

  • Abatement potential – how easy it is for the company to reduce emissions.
  • Data center usage – companies with large data centers use more energy and may buy more credits.
  • Headquarters country – companies in the US, UK, and China lead predicted purchases.
  • Internal carbon pricing – companies with higher carbon costs buy more credits.
  • Net-zero targets – companies with short-term or long-term climate goals are more likely to buy.
  • Sector – aviation, energy, and tech tend to buy more due to rules and public pressure.
  • Annual profit or loss – profitable firms are more able to purchase carbon credits.
factors for Likelihood to Buy VCM
Source: AlliedOffsets

The model also uses SHAP analysis to show which factors influence predicted buying the most. Companies that recently bought credits are weighted higher. Some sectors, like aviation, are manually marked as high-likelihood because of rules like CORSIA, which requires airlines to offset emissions.

AlliedOffsets also separates companies into new entrants and returning buyers, helping track demand trends.

Forecasted Carbon Credit Demand

AlliedOffsets predicts that new and returning buyers will need about 281 million credits per year. This comes from over 11,500 companies with characteristics similar to current buyers.

The demand by project type is expected to have this composition:

VCM demand by project type AlliedOffsets
Source: AlliedOffsets

Demand for forestry projects is rising, partly because of forward contracts, which made up 55% of the 147 million credits negotiated in 2025. 

carbon credit offtakes annual 2025 Sylvera
Source: Sylvera

By country, the greatest demand will come from the U.S., China, UK, France, Germany, and Brazil. 

VCM credits forecasted demand by country and sector
Source: AlliedOffsets

Aviation will be a big factor because airlines must offset emissions under CORSIA rules. Energy and technology companies in the US, like AT&T, IBM, and Ingram Micro, are likely to enter or re-enter the market.

Moreover, new entrants will expand the buyer base, per AlliedOffsets analysis. These include consumer goods, professional services, healthcare, and industrial firms. Many come from countries with fewer buyers so far, like Turkey and Belgium.

Financial Impact of Returning and New Buyers 

AlliedOffsets estimates that new and returning buyers will spend around $2.27 billion per year. Sector contributions are expected as follows, with aviation and energy leading the pack:

  • Aviation: over $800 million per year (about one-third of total).
  • Energy and Technology & Telecommunications: substantial ongoing purchases, over $300 million a year.
  • Consumer services, industrials, financial services, professional services: smaller but steady spend.
sectors expected to lead VCM demand forecast
Source: AlliedOffsets

Returning buyers bought nearly 7 million credits in previous years. ExxonMobil accounted for 66% of these purchases through both forward contracts and OTC deals. Other companies, like ArcelorMittal, invest in low-emission technology, reducing the need to buy credits.

New entrants, especially airlines, will increase activity. Credits purchased for CORSIA compliance must match emissions for international flights to and from ICAO member states.

Overall, growth in both returning and new buyers shows that corporate demand for carbon credits is likely to rise sharply. Companies that belong to initiatives like RE100, SBTi, Race to Zero, or NZBA are more likely to participate in the voluntary carbon market.

A Turning Point and Future Forecasts: Supply, Demand, and Policy Drivers

In 2025, the voluntary carbon credit market saw big changes. Total retirements fell to about 168 million tonnes, and new issuances dropped to around 270 million tonnes, the lowest since 2020.

Despite this, spending rose to roughly $1.04 billion, up from $980 million in 2024. The average price per credit also climbed to about $6.10, showing that buyers are paying more for high-quality, trusted credits rather than just buying large amounts.

carbon credit price 2025 MSCI

Companies are now choosing credits with strong monitoring and real climate impact. Nature-based projects, like afforestation and reforestation, did better than older REDD+ credits.

Forward contracts also grew, with over $12 billion signed in 2025, even though these will deliver only about 10 million credits a year through 2035. This shows that many companies want to secure the future supply of trusted credits. These trends match forecasts from AlliedOffsets, where demand is expected to rise for durable, high-quality carbon credits.

AlliedOffsets keeps expanding its database, now covering over 60,000 companies. Adding historical emissions data and checking with initiatives like the Forest Stewardship Council and Science Based Targets will improve forecasts.

Analysts expect supply limits may appear in forestry and land use projects as demand grows. Engineered removals, chemical processes, and industrial projects will also get more attention. Large investments by companies like Google and Amazon, which pledged $100 million to superpollutant removal projects by 2030, are expected to drive this.

Returning and new buyers, led by aviation, energy, and tech, will shape the next wave of demand. Understanding these patterns helps policymakers, intermediaries, and project developers plan supply and engagement strategies.

The voluntary carbon market is entering a new growth phase, driven by rules, climate commitments, and better forecasting tools. With models like Likelihood to Buy, market participants can plan ahead. Forestry, renewable energy, and industrial projects are likely to see the biggest benefits as corporate demand grows worldwide.

Surge Announces Former Berkshire Hathaway Energy Executive Mr. Richard Weech Joins the Board as an Independent Director

Disseminated on behalf of Surge Battery Metals Inc.


March 17, 2026: West Vancouver, BC; Surge Battery Metals Inc. (the “Company” or “Surge”) (TSXV: NILI, OTC: NILIF, FRA: DJ5C) is pleased to announce that former Berkshire Hathaway Energy executive, Mr. Richard Weech, has joined the Board of the Company as an Independent Director.

Mr. Weech is an executive professional with a thirty-five-year record of leading and contributing to high-achieving organizations delivering superior results in a variety of diverse leadership, financial, and operating roles in public and private businesses. He has extensive experience in leading and building businesses, developing people, raising capital, strategic planning, business development, joint venture structuring and risk management. Before his retirement in 2022, Mr. Weech spent 2014 through July 2022 responsible for leading the Berkshire Hathaway Energy subsidiaries, BHE Investments and BHE Renewables, through significant asset and financial growth that included developing and evaluating lithium extraction opportunities. Mr. Weech holds the CA, CPA, CFA professional designations and graduated with a Bachelor of Commerce with Distinction from the University of Alberta.

Mr. Weech commented: “I am excited to join the Surge Board of Directors and contribute to the successful development of a world class lithium critical mineral opportunity.”

In connection with the appointment of Mr. Weech to the Company’s Board of Directors, the Company has received the resignation of Mr. Ted O’Connor. The Company wishes to thank Mr. O’Connor for his contribution as a director and wishes him well in his future endeavors.

About Surge Battery Metals Inc.

Surge Battery Metals Inc., a Canadian-based mineral exploration company, is at the forefront of securing the supply of domestic lithium through its active engagement in the Nevada North Lithium Project. The project focuses on development of high-grade lithium energy metals in Nevada, USA, a crucial element for powering battery electric storage and electric vehicles. With a primary listing on the TSX Venture Exchange in Canada and a listing on the OTCQX Market in the USA, Surge Battery Metals Inc. is strategically positioned as a key player in advancing lithium exploration.

About Evolution Mining Limited

Evolution Mining is a leading, globally relevant gold miner. Evolution operates six mines, comprising five wholly-owned mines – Cowal in New South Wales, Ernest Henry and Mt Rawdon in Queensland, Mungari in Western Australia, and Red Lake in Ontario, Canada, and an 80% share in Northparkes in New South Wales.

About Nevada North Lithium LLC

Nevada North Lithium LLC owns the Nevada North Lithium Project southeast of Jackpot, Nevada about 73 km north-northeast of Wells, Elko County. The first three rounds of drilling at the project identified a strongly mineralized zone of lithium bearing clays occupying a strike length of more than 4,300 meters and a known width of greater than 1,500 meters. Highly anomalous soil values and geophysical surveys suggest there is potential for the clay horizons to be much greater in extent. The Nevada North Lithium Project has a pit-constrained Inferred Resource containing an estimated 11.24 Mt of Lithium Carbonate Equivalent (LCE) grading 3010 ppm Li at a 1,250-ppm cutoff. The recently completed PEA for the project reported an after-tax NPV8% US $9.17 Billion and after-tax IRR of 22.8% at $24,000/t LCE and an OPEX of US $5,243/t LCE.

On behalf of the Board of Directors

“Greg Reimer”

Greg Reimer, Director, President & CEO


lithium Price Analysis Today

Global lithium prices advanced 3.22% today, pushing international benchmarks to $22.1/kg and Chinese spot prices to ¥152,500/Ton. This upward momentum is primarily fueled by China's sudden phase-out of VAT export rebates on battery products, which has triggered immediate global supply chain shifts. Additionally, surging demand from AI data center energy storage systems and tightening supply constraints—exacerbated by Zimbabwe's raw lithium export ban—are compounding fears of a structural market deficit, strongly supporting today's price surge.

Live Lithium Spot Price

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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, 2024, 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.

Big Oil’s Carbon Reality: Shell’s 1.1 Billion-Ton Footprint Shows the Scale of the Energy Transition

Energy giant Shell reported around 1.1 billion metric tons of carbon dioxide equivalent (CO₂e) emissions in 2025. Most of these emissions come from the use of the fuels the company sells, known as Scope 3 emissions.

Scope 3 emissions occur when customers burn oil, gas, and other fuels produced by energy companies. For Shell, these emissions dominate its carbon footprint.

The company’s operational emissions are much smaller. Shell recently reported about 50 million tons of Scope 1 emissions from its operations. It also noted around 8 million tons of Scope 2 emissions from purchased electricity.

Together, these numbers show the scale of emissions linked to global fossil fuel use. In comparison, the United Kingdom’s total emissions were about 480 million tons in 2024, less than half of Shell’s overall carbon footprint. This comparison highlights how emissions linked to energy supply chains can exceed those of entire countries.

Why Scope 3 Emissions Dominate Oil and Gas

Most emissions linked to oil and gas companies come from the fuels consumers burn. This explains why Scope 3 emissions are the largest part of Shell’s carbon footprint.

  • Shell’s reporting shows Scope 3 emissions of over 1 billion tons of CO₂ equivalent, far higher than emissions from its direct operations. As seen below, the oil major’s GHG emissions have been declining since 2018.

Shell Annual Greenhouse Gas Emissions, Scope by Year, 2025

Scope 1 and Scope 2 emissions come from Shell’s operations and purchased energy, based on the company’s sustainability reports. Scope 3 emissions represent the use of fuels sold by Shell. Scope 3 accounts for the vast majority, around 95% of the company’s carbon footprint.

About 78% of these emissions occur downstream, mainly when customers use gasoline, diesel, or natural gas. The rest come from upstream activities such as equipment manufacturing and fuel transport.

This pattern is common across the oil and gas industry. Energy companies produce fuels, but most emissions occur when the fuels are burned.

Because of this structure, reducing emissions in the energy sector requires changes across the whole system. These include cleaner fuels, new technologies, and changes in how energy is used.

Shell’s Net-Zero Targets and Climate Strategy

Shell says it aims to become a net-zero emissions energy company by 2050. To move toward this goal, the company has set several climate targets.

Shell net zero an 2025 progress
Source: Shell

The oil giant has already made some progress on this goal. By 2024, the company had reduced operational emissions by about 30% compared with 2016.

Another metric Shell uses is Net Carbon Intensity (NCI). This measures emissions per unit of energy sold. In recent reporting, Shell’s NCI stood at 71 grams of CO₂ equivalent per megajoule, unchanged from the previous year.

The company plans to reduce this measure to net zero by 2050 as part of its transition strategy. However, intensity targets measure emissions relative to energy production. This means total emissions can remain stable if energy demand continues to grow.

Shell’s Offset Strategy: Retiring Millions with Certified Credits

In 2025, Shell retired 5.8 million carbon credits. Of these, 5.5 million were tied to its Net Carbon Intensity (NCI) efforts. This included 2.0 million linked to energy product sales. The company emphasizes careful sourcing and screening of credits.

shell carbon credit retirements 2025
Source: Shell

Of the total retired, 59% were certified by Verra’s Verified Carbon Standard (VCS), 22% by Gold Standard, 10% by the ACR program, and 9% via Climate Action Reserve.

Rising Energy Demand Keeps Fossil Fuels in Play

Global energy demand continues to rise. This affects emissions across the energy sector. According to the International Energy Agency, energy-related carbon dioxide emissions grew in many regions due to rising industrial activity and energy demand.

  • Emissions from natural gas increased by 2.5% in 2024, while coal emissions rose almost 1% in recent global energy data, per the IEA report.

natural gas and coal emissions 2024 IEA

Oil emissions also increased slightly as countries continued to rely on fossil fuels to meet economic growth and energy access needs. This demand helps explain why oil and gas companies still play a large role in global energy supply.

At the same time, the energy transition is accelerating. Governments and companies are investing in renewable power, electric vehicles, and cleaner fuels. These trends are reshaping the global energy system.

LNG and Carbon Capture in Shell’s Transition Plan

Shell continues to expand its liquefied natural gas business. The company expects global LNG demand to grow about 60% by 2040, driven by economic growth and industrial energy needs.

Natural gas produces fewer emissions than coal when burned. Because of this, some countries view LNG as a transitional fuel during the shift to cleaner energy systems.

Shell is also investing in carbon capture and storage (CCS). One major project is the Northern Lights carbon storage project in Norway, developed with industry partners. The facility aims to store at least 5 million tons of CO₂ per year once expanded.

Carbon capture technology can help reduce emissions from industries that are difficult to electrify, such as heavy manufacturing and shipping. However, CCS projects remain limited in number compared with the scale of global emissions.

The Enormous Scale of the Global Energy Transition

The world’s energy system is changing quickly. But the scale of fossil fuel use remains large.

Energy companies like Shell supply fuels used across transportation, power generation, and heavy industry. This explains why emissions linked to these companies are so high.

At the same time, new technologies are reshaping the energy landscape. Renewable power, electric vehicles, hydrogen fuels, and carbon capture are expanding rapidly.

Shell itself notes that new technologies could cut the carbon intensity of the global energy system by half by 2050 if current trends continue. Still, hitting global climate targets will require faster progress.

What Shell’s Emissions Reveal About the Energy System 

Shell’s reported 1.1 billion tons of CO₂ emissions in 2025 show the scale of the global energy challenge. The majority of these emissions come not from company operations, but from the fuels used by millions of consumers and industries worldwide.

Reducing emissions across this system will require major changes in energy production, infrastructure, and technology. Oil and gas companies remain central players in this transition. Their investments, technologies, and energy supply decisions will influence how quickly the global economy moves toward lower-carbon energy.

The next decades will determine whether the energy system can meet rising demand while also reducing emissions at the scale required to reach global climate goals.

DOE Launches $500M Funding Drive to Strengthen U.S. Battery Supply Chains and Critical Minerals Processing

The U.S. Department of Energy (DOE) has announced a major funding initiative aimed at strengthening domestic battery supply chains and reducing reliance on foreign sources of critical minerals. The department introduced a Notice of Funding Opportunity (NOFO) worth up to $500 million to expand U.S. capabilities in mineral processing, battery materials manufacturing, and recycling.

Significantly, these investments target industries such as grid storage, transportation, manufacturing, and national defense. At the same time, the initiative reflects growing concerns about supply chain vulnerabilities for minerals that power modern energy technologies.

According to Chris Wright, the United States has relied for too long on foreign suppliers to provide and process key materials used in battery manufacturing. Strengthening domestic supply chains, he explained, will help the country meet rising energy demand while maintaining economic and technological leadership.

Strengthening the Domestic Battery Supply Chain

The DOE’s new funding program focuses on boosting the United States’ ability to process, recycle, and manufacture battery materials domestically. Currently, many minerals used in advanced batteries are mined globally but processed overseas before reaching U.S. manufacturers.

america critical mineral

This dependency creates supply risks and exposes the economy to geopolitical disruptions. As a result, the new funding program aims to build a more resilient supply chain across several stages of battery production. Explained in detail below:

Critical Mineral Processing

First, the program seeks to expand domestic processing of critical minerals. Many essential battery materials—including lithium, nickel, graphite, copper, and aluminum—require complex refining processes before they can be used in batteries. By investing in new processing facilities, the United States hopes to reduce reliance on foreign refining capacity and ensure a stable supply of materials for domestic industries.

Battery Recycling Technologies

Second, the initiative emphasizes recycling technologies. Recovering valuable metals from used batteries and manufacturing scrap can significantly reduce the need for new mining while improving supply security. Recycling also lowers environmental impacts by reducing waste and conserving natural resources.

global critical mineral processing

Battery Manufacturing Capacity

Finally, the program aims to expand manufacturing capacity for battery materials and components within the United States. Increasing domestic production of battery precursors, cathode materials, and other key components will help support the entire North American battery supply chain.

The funding is supported by the Infrastructure Investment and Jobs Act, which allocated billions of dollars to strengthen energy infrastructure and domestic manufacturing across the country.

Battery Storage Becomes a Major U.S. Energy Technology

The urgency behind these investments reflects the rapid growth of battery storage across the United States. In recent years, battery systems have emerged as a critical technology for managing modern power grids.

In fact, batteries became the largest form of energy storage in the country in 2024, surpassing traditional pumped hydro storage for the first time. This shift marks a significant milestone in the evolution of the U.S. electricity system.

At the same time, the number of battery projects expanded rapidly. Nearly 1,000 storage projects were either operating or under development across the country. Many of these projects are located in California and Texas, where large-scale renewable energy installations require flexible storage solutions to stabilize the electricity supply.

One notable example is the Moss Landing Energy Storage Facility, one of the largest battery installations in the United States. Located in California, the facility pairs a natural gas power plant with massive battery storage systems that can deliver electricity when demand peaks.

As renewable energy capacity continues to grow, battery storage will play an increasingly important role in maintaining grid reliability and balancing intermittent energy sources such as solar and wind.

EV Battery Manufacturing Market Continues to Grow

The electric vehicle industry is another major driver behind rising battery demand. As EV adoption accelerates globally, automakers and battery companies are investing heavily in new manufacturing facilities.

In the United States, the electric vehicle battery manufacturing market is projected to grow steadily over the coming years. Industry estimates suggest the market will reach approximately $17.94 billion in 2026, increasing from $16.36 billion in 2025.

Looking further ahead, the sector is expected to expand significantly. By 2031, the market could reach around $28.46 billion, reflecting a compound annual growth rate of nearly 9.7 percent.

battery storage US

Multiple factors fuel this growth. Federal incentives for clean energy technologies, rising consumer demand for electric vehicles, and large-scale investments in domestic manufacturing are all contributing to the expansion of the U.S. battery industry.

However, sustaining this growth will require reliable access to the minerals that power advanced batteries.

America’s Critical Mineral Supply Remains a Concern 

To address supply risks, the U.S. Geological Survey expanded its official list of critical minerals in 2025. The updated list now includes 60 minerals, up from 50 identified in 2022.

Several new minerals were added due to their growing importance for the economy and national security. These additions include boron, copper, lead, metallurgical coal, phosphate, potash, rhenium, silicon, silver, and uranium.

Despite these efforts, the United States remains heavily dependent on imports for many critical minerals. As of 2024, the country relied entirely on foreign suppliers for twelve critical minerals. Meanwhile, more than half of the domestic demand for twenty-nine minerals came from imports.

Rare earth elements represent one of the most significant vulnerabilities because global supply chains remain highly concentrated. China continues to dominate the production and processing of these materials, raising concerns about potential supply disruptions.

As a result, U.S. policymakers are increasingly focused on strengthening domestic mining, processing, and recycling capabilities.

Global Demand for Energy Minerals Is Rising Fast

The push to secure mineral supply chains also reflects rapidly growing global demand for energy materials. According to the IEA, demand for key minerals used in clean energy technologies is expected to increase dramatically in the coming decades.

Lithium demand, for example, could grow fivefold by 2040 under current policy scenarios. Copper will likely remain the largest mineral market by value, while other materials such as nickel, cobalt, graphite, and rare earth elements will also see strong growth.

iea global demand critical minerals

Overall, the combined market value for six key energy minerals—copper, lithium, nickel, cobalt, graphite, and rare earth elements—could reach approximately $500 billion by 2040. This surge reflects the rapid expansion of electric vehicles, renewable power systems, battery storage, and other clean energy technologies.

Consequently, governments around the world are competing to secure reliable access to these strategic resources.

Against this backdrop, the DOE’s $500 million funding initiative represents an important step toward strengthening America’s position in the global battery economy. By expanding domestic processing, recycling, and manufacturing capacity, the United States aims to reduce supply risks while supporting the technologies that will power the future energy system.

CATL’s Profit Surges 42% With Global Battery Demand and the Shift to a Zero-Carbon Future

Contemporary Amperex Technology Co. Limited (CATL) released its 2025 Annual Report on March 10, 2026. The report highlights strong financial growth, rapid global expansion, and continued innovation in battery technology. The company reinforced its position as the world’s largest battery manufacturer while advancing its vision of becoming a leading zero-carbon technology company.

The report explains how CATL is expanding beyond traditional battery markets. The company is applying its technology across electric vehicles, energy storage, aviation, shipping, and AI infrastructure. CATL refers to this strategy as “all-domain growth,” meaning the electrification of multiple industries through advanced battery systems.

CATL’s Strong Financial Performance Reflects Rising Battery Demand

In 2025, the company reported strong revenue growth, record battery shipments, and higher profits. At the same time, it expanded its manufacturing capacity, increased research spending, and advanced sustainability efforts to build a circular energy ecosystem.

  • Revenue reached RMB 423.7 billion, a 17% increase from the previous year.
  • Net profit rose to RMB 72.2 billion, growing 42% year on year

The company also generated strong operating cash flow. Net cash flow from operating activities reached RMB 133.2 billion, showing steady demand for its products and solid business performance.

Much of this growth came from the rapid expansion of electric vehicles and energy storage systems worldwide. Governments and companies continue to invest heavily in clean energy, which has increased demand for reliable battery technology.

Battery shipments played a key role in this growth. CATL sold 661 gigawatt-hours of lithium-ion batteries during the year, a 39% increase from 2024. This shows the company’s ability to scale production as global demand for batteries continues to rise.

CATL
Data Source: CATL

Maintains Its Global Battery Leadership

According to data from SNE Research, the company held a 39.2% share of the global power battery market in the last year. Thereby, solidifying its leadership in the global battery market.

The company also expanded its international presence. Overseas market share reached 30%, and CATL batteries have now been installed in more than 24 million vehicles globally.

Energy storage has also become a major growth area for the company. Some notable milestones include:

  • Accounted for 30.4% of global energy storage battery shipments in 2025. This allowed the company to maintain the top global position in energy storage batteries for the fifth consecutive year.
  • Supported around 2,300 energy storage projects worldwide. At the same time, shipments from its energy storage system integration business grew by more than 160% compared with the previous year.

This growth reflects the increasing role of battery systems in balancing renewable energy grids and improving electricity reliability.

  • Furthermore, to meet growing global demand, the company expanded its manufacturing capacity to 772 GWh by the end of 2025, with 321 GWh under construction.

It operates advanced Lighthouse factories that use digital technology and automation to boost efficiency and reduce environmental impact.

Global battery demand

New Battery Technologies Expand Product Portfolio

The company introduced several new battery technologies during 2025, reflecting its focus on innovation and product diversification. These include the second-generation batteries, such as:

  • Shenxing superfast charging
  • Shenxing Pro
  • Freevoy dual-power
  • Naxtra
  • Super Hybrid

These technologies aim to improve charging speed, increase reliability in extreme environments, and reduce dependence on critical raw materials.

Advancement of Sodium-ion Batteries

One important development is the advancement of sodium-ion batteries. These batteries offer an alternative to lithium-based technologies and can reduce reliance on limited mineral resources.

CATL expects sodium-ion batteries to see broader adoption beginning in 2026 across applications such as battery swapping systems, passenger vehicles, commercial vehicles, and energy storage.

Sodium ion

Batteries Supporting AI Data Centers and Digital Infrastructure

Another emerging opportunity for CATL is energy infrastructure for artificial intelligence. Modern AI data centers require large and stable electricity supplies. Energy storage systems can help manage power consumption while improving efficiency.

CATL already provides storage solutions for SenseTime’s AI data center in Shanghai. The system helps optimize electricity usage and reduce operational costs.

  • According to the company, the storage system saves more than 10 million kilowatt-hours of electricity every year. It also lowers electricity costs by around 7% and prevents roughly 3,000 tonnes of carbon dioxide emissions annually.

This example shows how battery technology can play an important role in supporting the growing digital economy while also reducing emissions.

Expanding Electrification Into Aviation and Shipping

The company is expanding into aviation, maritime transport, and logistics as part of its broader electrification strategy.

In aviation, subsidiary AutoFlight completed the first public flight of the world’s largest five-ton electric vertical take-off and landing (eVTOL) aircraft. This shows the potential of electric aircraft for city transport and logistics.

In shipping, its battery systems have been approved by major international maritime authorities, making them safe for use in commercial ships.

CATL batteries are already powering nearly 1,000 electric vessels worldwide. The company also launched a “Ship–Shore–Cloud” system that connects electric ships, port charging, and digital energy management to reduce emissions and improve efficiency.

Research and Innovation Strengthen Technology Leadership

Research and development are a key part of CATL’s strategy. In 2025, the company spent RMB 22.1 billion on R&D, and over the past ten years, total investment exceeded RMB 90 billion.

CATL has six research centers and about 23,000 engineers and scientists, helping it create new battery technologies and improve existing ones. By the end of 2025, it held over 54,000 patents and ranked second among Chinese companies in international patent applications.

Moreover, the company uses artificial intelligence in research and manufacturing. For example, its next-generation lithium-ion battery project won the World Economic Forum’s MINDS award, showing how AI speeds up innovation.

Building a Zero-Carbon Energy Ecosystem

CATL’s strategy goes beyond producing batteries. The company is working to create a complete zero-carbon energy ecosystem that integrates clean electricity, storage, and transportation.

CATL ZERO CARBON
Source: CATL
  • Battery swapping is an important part of this strategy. CATL has built more than 1,000 Choco-Swap stations for passenger vehicles across 45 cities in China. These stations allow drivers to replace depleted batteries with fully charged ones in minutes.

The company also operates battery swapping infrastructure for heavy-duty trucks through its QIJI Energy network. This network includes more than 300 stations across 26 provinces and supports tens of thousands of kilometers of green logistics routes. In 2025, the combined network provided more than 1.15 million battery-swapping services.

  • CATL is also developing zero-carbon industrial parks and integrated renewable energy systems that combine power generation, storage, and electricity management.

One major project is located in Shandong province, where the company is building what it describes as the world’s first off-grid zero-carbon industrial park powered entirely by renewable electricity. The facility will supply green power to a lithium-ion battery plant with an annual capacity of 40 gigawatt-hours.

Advancing Circular Energy and Sustainability

Alongside business expansion, CATL continues to strengthen its sustainability commitments. In 2025, the company achieved an MSCI ESG rating of AA and was included in the S&P Global Sustainability Yearbook as well as the FTSE Emerging Index.

The company reported that its core operations reached carbon neutrality in 2025. At the same time, it is working to reduce emissions across its supply chain.

Battery recycling plays a key role in this effort. CATL recovered and processed 210,000 tonnes of used batteries during the year. From this recycling process, the company regenerated 24,000 tonnes of lithium salts, helping reduce the need for newly mined materials.

To support the development of a global circular battery economy, CATL also launched the Global Energy Circularity Commitment initiative.

Looking ahead, CATL plans to continue expanding its technology leadership and global partnerships. Growth is expected across electric vehicles, renewable energy storage, electrified transport, and digital infrastructure.

Through continued innovation, manufacturing expansion, and sustainability initiatives, CATL aims to strengthen its role in the global transition toward a zero-carbon energy system. The 2025 annual report shows that the company is not only leading the battery market but also shaping the future of clean energy worldwide.

NASCAR’s Biofuel Revolution: How America’s Biggest Motorsport Is Hitting Full Throttle on Net Zero

For decades, the National Association for Stock Car Auto Racing, aka NASCAR, stood for roaring engines, speed, and fierce competition. The sport, headquartered in Daytona Beach, Florida, built its reputation on powerful combustion engines and high-energy racing events across the United States.

However, the organization has recently shifted gears. Today, NASCAR is embracing sustainability and cleaner technology while still protecting the thrill of racing. The sport is working toward a bold target: net-zero operating emissions by 2035.

This goal forms the backbone of the NASCAR IMPACT strategy. The plan looks at emissions across the sport’s core activities—from race cars and racetrack facilities to large racing events. Instead of relying on a single solution, NASCAR is using multiple approaches, such as renewable energy, cleaner fuels, and improved waste management.

In short, the future of stock-car racing is becoming cleaner without losing its competitive edge.

NASCAR’s Net-Zero Mission

Back in 2023, NASCAR announced its commitment to reach net-zero carbon emissions from its operations by 2035. In simple terms, the goal focuses on the fuel and electricity used at NASCAR-owned racetracks and offices.

To make this happen, the organization plans to reduce overall energy consumption while increasing the share of renewable power used across its operations.

The strategy focuses on three main areas:

  • Race cars
  • Racing events
  • Facilities and offices

Each of these areas produces emissions in different ways. For example, race cars consume fuel, while events require power generators and logistics fleets. Meanwhile, offices and racetracks use electricity, heating, and cooling systems. Therefore, NASCAR’s climate strategy combines efficiency improvements with cleaner energy solutions.

Here’s a snapshot of the motosport company’s 2024 electricity consumption and emisions profile: 

nascar
Source: NASCAR

Electric Innovation Hits the Track

One of the biggest steps toward cleaner racing arrived in July 2024. Through the ABB NASCAR Electrification Partnership, the sport introduced its first electric race car prototype.

The ABB NASCAR EV Prototype represents a new chapter in motorsports technology. Engineers from NASCAR built the vehicle with support from three major automakers, i.e., Chevrolet, Ford Motor Company, and Toyota.

The project shows how the racing world can experiment with emerging technologies. NASCAR does not plan to replace traditional engines overnight. Instead, the electric prototype works as a testing ground for future performance innovations.

Motorsports has always pushed automotive technology forward. Now, sustainability is becoming part of that engineering race.

A Major Biofuel Partnership with POET Changes the Game

Another major development came through NASCAR’s partnership with POET LLC, the world’s largest biofuel producer. The agreement named POET as the Official Bioethanol Partner of NASCAR. More importantly, the collaboration introduces zero-carbon bioethanol into the sport’s fuel mix.

NASCAR will blend this bioethanol with fuel supplied by its long-time partner Sunoco. As a result, the racing series will become the first major motorsport to use zero-carbon bioethanol fuel.

  • This change highlights a key idea behind NASCAR’s sustainability strategy: improving performance while cutting emissions.
nascar
Source: NASCAR

Bioethanol already offers several advantages. It burns cleaner than conventional gasoline and produces lower carbon intensity. At the same time, it maintains the high-octane performance required for competitive racing.

For drivers and teams, fuel keeps engines running at full power. For the environment, it reduces pollution.

The partnership also brings strong visibility for the biofuel industry. Beginning this season, POET sponsors the “POET Restart Zone” at NASCAR-owned tracks—one of the most intense moments during races when cars restart after caution periods.

In addition, POET branding now appears on all NASCAR fuel cans alongside Sunoco. This move reinforces the growing role of renewable fuels in motorsports.

Cleaner Fuels for the Next Generation of Race Cars

NASCAR’s national racing series already uses Sunoco Green E15, a high-performance unleaded fuel blend. The fuel contains 15% bioethanol and 85% gasoline.

During the 2024 racing season, NASCAR consumed over 261,000 gallons of Sunoco Green E15 across its three national racing series.

While combustion engines will remain part of NASCAR’s identity, the organization plans to keep improving fuel technology over the next decade. And cleaner fuels are a practical step. They allow the sport to reduce emissions without requiring major changes to vehicle design.

nascar biofuel
Source: NASCAR

Renewable Diesel in NASCAR’s Hauler Fleet

Behind every NASCAR race lies a massive logistics operation. The sport’s equipment travels thousands of miles each season in heavy transport trucks.

In 2024, NASCAR’s fleet of 17 Mack diesel haulers traveled more than 805,000 miles—roughly the distance of going to the moon and back.

Significantly, the company started testing renewable diesel fuel from wood residues, agricultural waste, and used cooking oil to reduce emissions from transportation

The fuel works in existing engines without modifications. That makes it a convenient way to cut emissions immediately while longer-term solutions develop. It also burns cleaner than traditional diesel, which helps lower the environmental footprint of NASCAR’s logistics operations.

Powering Racetracks with Renewable Energy Credits

Beyond vehicles and events, NASCAR is also transforming the energy used at its facilities.

  • In 2023, the organization committed to powering all of its facilities with 100% renewable electricity for the next five years. To achieve this, NASCAR partnered with NextEra Energy.
  • The company purchased Green-e Certified Renewable Energy Credits (RECs) from wind farms across the United States. These credits ensure that an equivalent amount of renewable electricity enters the national power grid. By buying these credits, NASCAR offsets the electricity used at its racetracks and offices.

However, the organization does not plan to rely on credits forever. In the long run, NASCAR hopes to install solar panels directly at its facilities, producing clean electricity on site and strengthening local renewable energy supply.

Reducing Energy Demand at Facilities

Using renewable power is important. But reducing overall energy demand matters just as much.

NASCAR has begun implementing energy-efficiency programs across its buildings and racetracks. These measures focus on cutting electricity consumption while lowering operating costs.

nascar
Source: NASCAR

Another key area involves fugitive emissions. These are small gas leaks from equipment such as air conditioners and refrigeration systems. Although they may seem minor, some of these gases can be powerful greenhouse pollutants.

Therefore, NASCAR closely monitors these systems and works to prevent leaks whenever possible.

Cutting Emissions at Racing Events

Large racing events require significant energy. Power generators, logistics fleets, and track equipment all contribute to emissions.

Therefore, NASCAR has started analyzing energy use across its race operations. Data collection helps the organization understand where emissions are highest and where improvements can deliver the biggest impact.

One example involves track dryers. After heavy rain, NASCAR uses specialized machines to dry racetracks quickly so races can continue. Previously, these machines used jet fuel. However, NASCAR recently introduced the first propane-powered track dryer with help from partner Suburban Propane.

  • The change is expected to reduce emissions from these dryers by about 58%. It may seem like a small improvement, but these incremental changes add up over time.

Another example comes from the Chicago Street Race. By redesigning the layout of temporary power units, the event operations team managed to run multiple areas using a single hybrid generator.

  • As a result, the race reduced fuel consumption by more than 27% compared with the previous year.

nascar energy efficiency

Recycling and Waste Reduction Across the Sport

Sustainability efforts at NASCAR extend beyond energy and fuel. Waste management has become another major focus.

The organization now operates expanded recycling programs across its tracks and offices. These programs target a wide range of materials, including aluminum cans, plastic bottles, used racing tires, and motor oil.

NASCAR also partners with waste-management companies to divert materials from landfills and promote circular economy practices.

Even fans play a role. During race weekends, it encourages spectators to recycle and dispose of waste responsibly. These engagement campaigns help reduce the environmental footprint of large racing events.

The Future of Sustainable Motorsports

NASCAR remains one of the most recognizable motorsports organizations in the world. Traditionally, the sport has focused on stock-car racing events across the Southeast and Midwest United States.

Yet today, NASCAR is also becoming a testing ground for sustainability innovation. From electric prototypes and renewable fuels to cleaner logistics and renewable energy systems, the organization is experimenting with multiple solutions at once.

Importantly, these efforts prove that high performance and environmental responsibility can coexist. Motorsports has always pushed the limits of engineering. Now, the industry is beginning to push the limits of sustainability as well.

South Korea Mandates ISSB-Aligned Climate Reporting by 2028 for Corporate Giants

South Korea plans to require large companies to publish mandatory sustainability reports starting in 2028. The rule will apply first to major firms listed on the country’s main stock exchange.

Starting in 2028, KOSPI (the largest South Korean stocks) companies with at least 30 trillion won (around $22 billion) in assets will need to reveal their environmental, social, and governance (ESG) practices.

South Korea’s Sustainability Reporting Era Begins

The reporting requirement will expand in 2029 to companies with 10 trillion won or more in assets. The first phase will focus on about 58 of South Korea‘s largest listed companies. This is based on estimates from the Financial Services Commission (FSC).

Companies must publish clear details on climate risks, emissions, governance, and sustainability strategies. These disclosures will cover greenhouse gas emissions, climate financial risks, and plans to achieve climate goals.

The government says the policy will improve transparency for investors and strengthen confidence in Korea’s financial markets. It will also help the country align with global ESG reporting standards that investors increasingly expect.

South Korea has big industrial companies operating in electronics, cars, steel, and shipbuilding. These industries play a major role in global supply chains. Clear sustainability reporting could help these companies maintain access to international capital and markets.

A Gradual Rollout to Ease Corporate Burden

In 2026, South Korea’s Financial Services Commission released a roadmap for ESG disclosure. The policy forms part of the government’s broader strategy to support the country’s green transition.

south korea 2030 emissions projection

Officials decided on a phased rollout to give companies enough time to prepare. Key elements of the plan include:

  • Mandatory ESG reporting for large KOSPI companies starting in 2028.
  • Expansion to additional companies in 2029.
  • Full adoption of supply-chain emissions reporting by 2031.

Companies will receive a three-year grace period before they must disclose Scope 3 emissions. These emissions include indirect emissions across a company’s value chain. These can come from suppliers, transportation, product use, and waste.

For many firms, Scope 3 emissions represent the largest share of total emissions. The Carbon Disclosure Project (CDP) states that Scope 3 emissions can be over 11 times greater than direct operational emissions for many companies.

Regulators gave companies more time to create systems for measuring these emissions due to the complexity involved.

Initially, the rules will operate through stock exchange disclosure requirements. Over time, the government plans to convert them into formal legal reporting obligations.

How Climate Finance Powers Korea’s Green Shift

The new reporting framework supports South Korea’s broader climate policy and energy transition. The government aims to raise about 790 trillion won (around $590 billion) by 2032.

The funding will support climate-related investments and help industries modernize and reduce emissions. Priority sectors include renewable energy, hydrogen technologies, green infrastructure, low-carbon manufacturing, and energy efficiency upgrades.

Heavy industries are a key focus of these efforts. South Korea is a top producer of steel, petrochemicals, and semiconductors, which need a lot of energy. The country generates 33% of its electricity from coal, per International Energy Agency data

International Energy Agency - Electricity generation sources, Korea, 2024

The IEA says South Korea was one of the top ten energy consumers in 2024. Industry made up a large part of the electricity demand. The government will introduce transition finance frameworks. These will help high-emission industries get funding for cleaner technologies.

Korea 2030 ghg reduction targets

South Korea has pledged to reach carbon neutrality by 2050. The country also aims to reduce greenhouse gas emissions 40% below 2018 levels by 2030 under its updated climate plan. Stronger ESG reporting will help investors measure corporate progress toward these goals.

South Korea net zero goal
Source: IEA

Why Mandatory ESG Reporting Is Going Global

South Korea’s policy reflects a global shift toward mandatory sustainability reporting. Governments and regulators increasingly require companies to disclose climate risks and emissions data. These rules show how climate change and energy policies can impact businesses.

The EU’s Corporate Sustainability Reporting Directive (CSRD) is a major reporting framework. The rule will eventually apply to around 50,000 companies operating in Europe, according to the European Commission.

Global standards are also emerging. The International Sustainability Standards Board (ISSB) released two key disclosure standards in 2023:

  • IFRS S1, covering general sustainability disclosures
  • IFRS S2, covering climate-related disclosures

More than 20 jurisdictions representing over half of global GDP have announced plans to adopt or align with ISSB standards. South Korea’s reporting framework follows these international guidelines.

The country set up the Korea Sustainability Standards Board (KSSB). Its job is to create national reporting standards that match the ISSB framework.

Companies will be required to disclose:

  • climate risks and opportunities,
  • governance structures for sustainability oversight,
  • emissions data and reduction targets, and
  • strategy and risk management practices.

This alignment helps investors compare companies across different markets using similar data.

Korean Corporations Step Up Sustainability Disclosures

Corporate sustainability reporting has already expanded in South Korea. By 2024, about 203 Korean companies will publish voluntary sustainability reports. This comes from ESG research groups that track disclosure trends.

Large Korean firms have increasingly adopted global reporting frameworks such as:

  • Task Force on Climate-related Financial Disclosures (TCFD)
  • Global Reporting Initiative (GRI)
  • Sustainability Accounting Standards Board (SASB)

However, many companies asked regulators to delay mandatory reporting requirements. Businesses said they need more time to create reliable emissions measurement systems and reporting processes.

The government responded by pushing the start date to 2028. The extra time helps companies create internal ESG management systems and enhance data collection. Financial institutions strongly support stronger sustainability disclosure.

Investors increasingly use ESG data when evaluating risk and long-term performance. According to the Global Sustainable Investment Alliance, sustainable investment assets reached over $30 trillion globally in recent years. Analysts forecast it to reach $40 trillion by 2030.

ESG asset forecast 2030 Bloomberg

Transparent ESG reporting helps companies attract capital from these investors. It also helps banks and asset managers assess climate risks across their portfolios.

The Future of ESG Disclosure in Asia

South Korea’s new rules could influence ESG reporting across Asia. Several financial centers in the region are strengthening climate reporting policies.

For instance, Japan plans to expand sustainability disclosure rules for major companies beginning around 2027. The country now requires climate risk disclosures for companies on its Prime Market. These disclosures must follow the TCFD framework.

Singapore and Hong Kong are both starting mandatory climate reporting that will follow ISSB standards. China is also expanding its climate disclosure rules to other major sectors. 

These developments reflect growing pressure from global investors. Many asset managers now need detailed climate data from companies. They use this information before deciding on investments.

Consistent reporting frameworks also help multinational companies operate across multiple markets. Large corporations often face different disclosure rules in different countries. Aligning with global standards can reduce compliance costs and improve transparency.

As more countries adopt ESG reporting rules, sustainability reporting may become as common as financial reporting.

Transparency as the New Standard in Global Markets

South Korea’s plan to introduce mandatory sustainability reporting in 2028 marks a major step in the country’s climate and financial policy. The phased rollout will start with the largest listed companies and later expand to more firms. Companies will need to disclose detailed data on emissions, climate risks, and sustainability strategies.

The policy aims to improve transparency for investors and align South Korea with global ESG reporting standards. As sustainability disclosure becomes more common worldwide, companies with strong climate strategies and clear reporting systems may gain an advantage in global capital markets.

Nvidia’s $2B Bet in AI: Powering Innovation with Nebius and Palantir While Tackling Energy Impact

Artificial intelligence (AI) is changing many industries. NVIDIA, the company that designs the chips and systems that power large AI models and data centers, leads in AI technology and hardware.

The big tech company made headlines with major news about its AI investments and partnerships with Nebius and Palantir Technologies. These moves have implications for environmental sustainability, energy use, and greenhouse gas emissions.

NVIDIA’s $2B Nebius Investment Fuels AI Cloud Expansion

NVIDIA announced it will invest $2 billion in Nebius, a cloud infrastructure company. This investment aims to support AI cloud expansion and data center capacity. 

NVIDIA will take an 8.3% stake in Nebius through this investment. The cloud provider plans to build AI data centers with more than 5 gigawatts of capacity by 2030. This capacity is roughly enough power for over 4 million U.S. homes.

The partnership includes early access to NVIDIA’s compute hardware and software. The companies will work together on large‑scale AI computing clusters. Nebius also received approval to build a 1.2 gigawatt data center campus in Missouri, U.S.

Nvidia (NVDA) stock saw a modest increase, while Nebius Group (NBIS) shares soared over 16% following the announcement of the investment. The deal drove significant investor confidence in Nebius.

Nvidia NVDA stock price
Nvidia NVDA stock price
Nebius NBIS stock price
Nebius NBIS stock price

What This Means for Energy and Emissions

AI data centers use a lot of electricity. They power powerful chips and run complex models. Building larger infrastructure without considering energy efficiency can raise carbon emissions.

But NVIDIA’s hardware and software often aim to improve performance per watt. Improved efficiency means less energy per unit of computation. Better energy use can reduce running costs and overall emissions at scale.

At CES 2026, NVIDIA unveiled its Rubin architecture for data center GPUs, claiming 40% higher energy efficiency per watt over the prior generation. Unlike single chips, Rubin unites six specialized chips into a rack-level system, slashing power for massive AI workloads while boosting speed. This advances NVIDIA’s “Green AI” for sustainable data centers.

Nvidia Rubin platform
Source: NVIDIA

Still, expanding data center capacity will add to total energy demand. For this reason, it is important that such expansions use low‑carbon electricity sources such as wind, solar, and hydropower.

Operational AI with Palantir: Smarter Workflows, Lower Emissions

NVIDIA and Palantir Technologies announced a collaboration to build an integrated operational AI technology stack. This stack combines the chipmaker’s accelerated computing and AI software with Palantir’s data intelligence platform. 

Justin Boitano, vice president, Enterprise AI Platforms, NVIDIA, said:

“AI is redefining the infrastructure stack — demanding, latency-sensitive and data-sovereign environments require a full-stack architecture — built from silicon to systems to software. By combining Palantir’s sovereign AI OS reference architecture with NVIDIA AI infrastructure, industries and nations can turn data into intelligence with speed, efficiency, and trust.”



NVIDIA CEO Jensen Huang also noted that ‘Palantir and NVIDIA share a vision: to put AI into action, turning enterprise data into decision intelligence.’ The partnership was highlighted at NVIDIA’s GTC Washington, D.C. event.

This technology helps businesses and governments use AI to manage data and decision intelligence. It allows complex data from supply chains, logistics, and operations to feed into AI systems, which can make real‑time decisions and improve efficiency.

For example, systems built on this stack can automate workflows, optimize routes, and predict supply needs. Logistics and supply processes often involve fuel use and emissions. AI tools that help optimize these processes can help companies reduce waste and energy use.

This partnership also includes integration of NVIDIA’s AI models and tools into the Palantir platform. The combined stack supports automation and digital decision making for complex operations.

AI’s Role in Net‑Zero and Emission Reductions

AI technology has potential benefits for climate and environmental goals. AI can help sectors in many ways, such as:

  • Energy systems planning: AI can optimize grid load, match supply and demand, and reduce waste.
  • Industrial operations: AI can monitor and adjust machinery to cut fuel use and emissions.
  • Transportation and logistics: AI routing tools can lower fuel consumption and emissions.
  • Building efficiency: Smart systems can reduce energy use in heating or cooling.

These applications show that AI can support net‑zero goals across industries.

In particular, using operational AI to improve logistics and supply chains can help companies reduce emissions. AI tools can analyze traffic, weather, and delivery patterns in real time. They can recommend routes that use less fuel and avoid delays. AI can also reduce idle time for trucks, ships, and warehouse equipment.

Logistics is a major source of emissions. According to the International Energy Agency, transport accounted for about 23% of global energy-related CO₂ emissions in recent years. Freight transport alone produces roughly 40% of transport emissions.

digital technology for net zero
Source: WEF

AI optimization can lower these emissions. Research from the World Economic Forum shows that digital technologies such as AI, data platforms, and automation could cut logistics emissions by up to 10–15% by 2030. These tools improve route planning, fleet efficiency, and cargo utilization.

Industry studies show similar results. McKinsey & Company estimates that AI-based route optimization can reduce fuel use in logistics fleets by about 5–10%. Even small gains can matter at scale. For example, a large delivery fleet that burns 100 million liters of fuel per year could save 5–10 million liters annually using smarter routing systems.

Ai based route decarbonization reduce emissions
Source: McKinsey & Company

These estimates help explain why companies are investing in operational AI platforms. When applied across supply chains, AI can help businesses lower fuel use, reduce emissions, and improve efficiency at the same time.

NVIDIA’s technology, including high‑performance GPUs, optimized software, and AI models, can be part of these solutions. By improving performance per watt and enabling energy‑aware workflows, the tech giant contributes to both the growth of AI and the efficiency of systems that use it.

AI for Efficiency and Sustainability

Artificial intelligence has a dual climate role:

  • AI systems can be energy‑intensive and add to electricity demand.
  • AI tools can also help optimize energy use in other sectors.

AI computing infrastructure continues to expand. More powerful chips and larger data centers mean higher energy use. Research shows that data center energy demand could nearly double by 2030 due to AI workloads alone. AI servers and cooling systems are energy‑intensive, and they also use significant water resources.

AI data center energy GW 2030

However, efficiency improvements and smarter energy use can reduce emissions. New hardware designs, better cooling technologies, and renewable power integration can lower the environmental footprint of AI computing.

Major cloud providers and AI infrastructure firms, including NVIDIA partners, are investing in energy‑efficient systems. This includes technologies that cut power demand and reduce heat waste.

NVIDIA’s push for next‑generation hardware, such as chips designed to improve energy efficiency per computation, helps support these goals. GPUs and AI accelerators that do more work with less energy can have a positive impact on total energy use over time.

Conclusion: Balancing Growth and Sustainability

NVIDIA’s recent news shows the company’s strategy at the center of AI growth. Its $2 billion investment in Nebius will help expand AI cloud infrastructure. The collaboration with Palantir aims to bring AI tools into complex enterprise operations. 

At the same time, AI infrastructure carries environmental challenges. Data centers and high‑performance computing need vast energy. But the deployment of more efficient hardware, smarter software, and renewable energy integration can reduce this impact.

NVIDIA’s technologies, when used to improve energy use and emissions management, can help companies work toward net‑zero targets. As AI continues to grow, balancing innovation with sustainability will remain essential.

Trafigura to Buy 80,000 Tonnes Over 10 Years from U.S. Smackover Project

Trafigura has signed a long-term offtake agreement to purchase lithium carbonate from the South West Arkansas (SWA) Project. Smackover Lithium is a joint venture between Standard Lithium Ltd. and Equinor ASA.

The deal supports the development of domestic lithium production in the United States. At the same time, it shows how partnerships between commodity traders and lithium developers are shaping the future battery supply chain.

Trafigura Secures Long-Term Lithium Supply

Trafigura will purchase 8,000 metric tonnes of battery-grade lithium carbonate each year from the SWA Project. The agreement runs for ten years, bringing the total contracted supply to about 80,000 tonnes.

The contract follows a take-or-pay structure. This means Trafigura must purchase the agreed volume every year or pay for it regardless. Agreements like this are common in mining and energy because they provide financial certainty for new projects.

Deliveries will begin once the project enters commercial production. The partners expect production to start in 2028, while the final investment decision is planned for 2026. Notably, for developers, long-term supply contracts often play a key role. They signal market confidence and make it easier to secure project financing.

Gonzalo De Olazaval, Head of Metals and Minerals at Trafigura, commented: 

“We are pleased to have signed this offtake agreement with Smackover Lithium, further strengthening our North American critical minerals footprint. The SWA Project is expected to provide a reliable source of battery-grade lithium carbonate produced in the United States, enhancing domestic supply chains. We look forward to collaborating with Smackover Lithium on this strategic project and to delivering this material to customers across North America and globally.”

Unlocking The South West Arkansas Lithium Project

The SWA Project sits in southern Arkansas near the borders of Texas and Louisiana. It lies within the Smackover Formation, a geological region known for lithium-rich brine deposits.

  • Smackover Lithium operates the project as a joint venture. Standard Lithium owns 55%, while Equinor holds 45%, and Standard Lithium serves as the operator.

The project covers roughly 30,000 acres of brine leases. The first phase of development focuses on the Reynolds Brine Unit, which spans more than 20,800 acres. Regulators approved the unit without objections from local stakeholders. And this approval marked an important milestone for the project’s development.

The first stage of the project aims to produce about 22,500 tonnes of battery-grade lithium carbonate each year. Nearby leases offer additional space for future expansion if production increases.

Direct Lithium Extraction at the Core

The project will rely on direct lithium extraction (DLE) technology to recover lithium from underground brine.

Traditional lithium operations often use evaporation ponds that take months or even years to produce lithium chemicals. In contrast, DLE removes lithium directly from brine using specialized materials and chemical processes.

After extraction, the remaining brine is usually pumped back underground. This process helps maintain reservoir pressure and reduces surface water use.

Because of these advantages, DLE has attracted strong attention across the lithium industry. It can shorten production times and reduce the land footprint of operations. The company has spent several years testing and refining this technology. The SWA Project aims to apply it on a commercial scale.

Smackover Formation: A Rising Center for U.S. Lithium Production

The Smackover Formation stretches from central Texas to the Florida Panhandle. It is widely considered one of the most promising lithium brine regions in North America. Lithium concentrations in the formation are comparable to those found in major production areas in Argentina and Chile.

Arkansas sits at the center of this resource. The region already has a long industrial history. Oil and gas production began there in the early twentieth century. Later, the region became a key hub for bromine extraction from brine.

smackover formation lithium
Source: Standard Lithium

This industrial background created several advantages for lithium development. Infrastructure such as wells, pipelines, and processing facilities already exists. In addition, the local workforce has decades of experience handling brine extraction.

Because of this foundation, lithium production can build on existing systems rather than starting from scratch. Furthermore, the region also faces fewer water stress challenges than some lithium-rich areas in South America or the western United States. This improves the long-term feasibility of brine-based lithium projects.

Strong Resources Support the Project

The company revealed that resource estimates suggest the SWA Project holds significant lithium potential. Current studies project about 447,000 tonnes of proven lithium carbonate equivalent reserves.

This represents roughly 38 percent of the project’s measured and indicated resource base, which totals about 1.17 million tonnes of lithium carbonate equivalent.

The operation will begin production with lithium concentrations of around 549 milligrams per liter in the brine. Over its estimated 20-year operating life, the project is expected to process about 0.20 cubic kilometers of brine. The average lithium concentration during that period is expected to remain around 481 milligrams per liter.

Higher lithium grades play a major role in project economics. Strong concentrations allow producers to recover more lithium from each unit of brine. As a result, processing costs fall, and efficiency improves.

Because of this, projects with both strong grades and large resources tend to attract greater interest from investors and long-term buyers.

us lithium
Source: Standard Lithium

U.S. Lithium Potential in a Global Context

Lithium resources in the United States come from several geological sources.

  • According to the latest data from the U.S. Geological Survey, measured and indicated lithium resources in the country are estimated at around 30 million tons.

These resources occur in different types of deposits, including continental brines, oilfield brines, geothermal brines, claystone deposits, hectorite, and hard-rock pegmatites.

Global exploration continues to expand the lithium resource base. And worldwide, measured and indicated lithium resources are estimated at 150 million tons. As exploration advances and new extraction technologies emerge, more regions are becoming viable sources of lithium supply.

US lithium
Source: USGS

Rising Demand from EVs, Energy Storage, and AI

Lithium demand continues to increase across several sectors. The largest driver remains the electric vehicle market.

In the United States, lithium demand for EV batteries is expected to grow by about 25% per year over the next decade. This growth rate exceeds the projected global EV demand growth of about 13 percent annually.

lithium demand
Source: Standard Lithium

Energy storage is another rapidly expanding market. Large battery systems help store electricity from renewable sources such as solar and wind power and release it when demand rises.

At the same time, digital infrastructure is creating new pressure on electricity systems. Data centers that support artificial intelligence require massive amounts of energy. This trend is pushing utilities to expand battery storage capacity.

Because of these factors, the U.S. energy storage market could grow by roughly 29 percent per year, further increasing the need for lithium-based batteries.

A Practical Shift in the U.S. Lithium Story

For many years, the United States relied heavily on imported lithium materials. However, that approach is slowly changing.

Projects like the SWA development show how companies are trying to rebuild parts of the battery supply chain domestically. Instead of shipping raw materials across several continents, producers are exploring ways to supply lithium closer to battery and vehicle manufacturing centers.

The Smackover region fits naturally into this transition. Its geology, infrastructure, and long history of brine extraction already support industrial operations.

The agreement with Trafigura adds another layer of confidence. Commodity traders usually commit to long-term supply deals only when they believe a project has strong potential.

If development moves forward as planned, the SWA Project could turn southern Arkansas into a new center for lithium production. Over time, the region may shift from its long history of oil, gas, and bromine toward a growing role in supplying the battery metals needed for modern energy systems.

Boeing Locks In 40,000 Tons of Carbon Removal Credits in Major Biochar Climate Deal

Aerospace giant Boeing has signed a multi-year agreement with carbon removal platform Carbonfuture to purchase at least 40,000 tonnes of durable carbon dioxide removal (CDR) credits. The deal ranks among the largest carbon removal procurements in the aviation sector so far.

The carbon credits will come from a portfolio of biochar carbon removal projects, mainly located across the Global South. Biochar is created by heating plant material in a low-oxygen environment. The process converts biomass into a stable form of carbon that can be stored in soil for long periods.

Carbonfuture will track each credit using its digital monitoring system. The platform records the entire carbon removal process—from biochar production to soil application. It also verifies ownership of the credits.

The agreement helps Boeing tackle emissions that technology or fuel changes can’t eliminate yet. The company plans to apply these credits to Scope 3 emissions linked to business travel.

Allison Melia, VP Global Enterprise Sustainability, Boeing, said:

“To support long-term global demand for air travel, the aviation industry has set goals to reduce emissions. We’re excited to team up with Carbonfuture to support technological innovation in carbon removals to help meet these needs.”

This partnership reflects a broader shift in corporate climate strategies. Many industries now combine emissions reductions with carbon removal to manage their climate impact.

Why Aviation Is Turning to Carbon Removal

Decarbonizing aviation is difficult. Aircraft can last for decades, and alternatives like hydrogen planes or fully electric aircraft are still years away from wide use.

The aviation sector produces around 2–3% of global carbon dioxide emissions, based on research from energy and industry studies. When scientists look at the warming effects of contrails and other non-CO₂ emissions, aviation’s climate impact gets bigger.

Airline aviation sector ghg emissions 2024 IATA
Source: IATA

Demand for flights also continues to grow. Rising global travel has offset many efficiency improvements in aircraft design and operations.

Sustainable aviation fuel (SAF) is one promising solution. However, SAF still accounts for less than 1% of global jet fuel supply and often costs two to ten times more than conventional jet fuel.

SAF supply forecast 2030

Because of these limits, aviation companies are turning to carbon removal technologies. These systems physically remove carbon dioxide from the atmosphere rather than simply avoiding emissions.

Boeing’s deal with Carbonfuture shows how carbon removal can complement other decarbonization strategies.

Biochar Carbon Removal: Turning Biomass Into Long-Term Carbon Storage

The credits in Boeing’s deal come from biochar-based carbon removal projects. Biochar forms through a process called pyrolysis. Organic waste, such as crop residues or forestry by-products, is heated in a low-oxygen environment. This converts the biomass into a carbon-rich charcoal.

biochar carbon market snapshot 2025

When biochar is added to soil, it can store carbon for hundreds of years while improving soil health and water retention.

The projects in Boeing’s agreement also provide environmental benefits beyond carbon storage. Biochar can increase soil fertility, improve crop yields, and support agricultural resilience in regions facing land degradation.

Carbonfuture’s digital platform tracks every stage of the carbon removal process. This monitoring system aims to increase transparency and trust in carbon credit markets.

High-quality verification matters. Voluntary carbon markets have faced criticism for weak oversight and questionable offset projects.

Inside Boeing’s Emissions Footprint and Net-Zero Strategy

The carbon removal agreement is part of Boeing’s broader sustainability strategy. Like many aerospace companies, the aerospace giant faces large emissions from its value chain. Most of its climate impact comes from Scope 3 emissions. These include airline aircraft operations and other indirect activities.

Boeing’s total carbon footprint is estimated at around 374 million metric tons of CO₂ equivalent for 2024. Of this, about 373 million tons are from Scope 3 sources.

Direct emissions from Boeing operations are much smaller. The company reported about 517,000 tons of Scope 1 emissions and 464,000 tons of Scope 2 emissions from purchased electricity.

Because Scope 3 emissions dominate aviation’s footprint, companies must work across the entire ecosystem. That includes airlines, fuel suppliers, airports, and aircraft manufacturers.

Boeing plan to decarbonize aerospace

The ariplane maker says its strategy focuses on four main areas:

  • improving aircraft fuel efficiency,
  • supporting sustainable aviation fuel development,
  • advancing new propulsion technologies, and
  • using carbon removal for residual emissions.

Carbon removal purchases help address emissions that cannot yet be eliminated through technological change.

Corporate Demand Is Fueling the Carbon Removal Market

Boeing’s deal also reflects rapid growth in the carbon removal market. Corporate demand for carbon dioxide removal has expanded in recent years. Many companies now view durable removals as a key tool for meeting net-zero climate targets.

Recent data shows that high-durability carbon removal credits hit nearly 8 million metric tons in 2024. This is up from about 2.4 million tons in 2023. That’s a jump of around 233% in just one year, according to CDR.fyi.

Analysts expect carbon removal demand to rise sharply over the next decade as climate targets tighten. BCG estimates that annual demand for carbon removal might hit 40–200 million tons of CO₂ by 2030. It could grow further to 80–900 million tons by 2040 as more companies commit to net-zero goals.

New technologies such as biochar, direct air capture, and mineralization are gaining attention from investors and large corporate buyers.

Early demand will likely come from voluntary corporate buyers. These buyers could make up about 90% of carbon removal purchases soon as companies are looking for high-quality solutions to tackle hard-to-eliminate emissions.

Large technology companies such as Alphabet, Stripe, and Microsoft currently dominate the market. Microsoft alone purchased about 5.1 million tons of durable carbon removal credits in 2024, representing around 63% of total market demand.

Earlier, Boeing signed another major removal agreement with carbon removal firm Charm Industrial. That deal targeted up to 100,000 tons of CO₂ removal, showing the company’s growing interest in durable climate solutions.

Aviation’s Net-Zero Path: Fuel Innovation Meets Carbon Removal

The Boeing–Carbonfuture agreement highlights a growing trend in hard-to-abate industries. Aviation, steel, shipping, and cement all face similar challenges. These sectors depend on energy-dense fuels and long-lived infrastructure.

Because of this, companies are exploring multiple climate strategies at once. These include:

  • new aircraft designs,
  • sustainable aviation fuels,
  • operational efficiency improvements, and
  • carbon removal technologies.

Durable carbon removal is increasingly viewed as a bridge solution. It can help manage emissions while new technologies mature.

As global air travel grows, airlines and aircraft makers will face more pressure. They need to show clear paths for decarbonization.

Scaling Climate Solutions for Hard-to-Abate Sectors

Boeing’s carbon removal partnership with Carbonfuture marks an important step in aviation’s evolving climate strategy. The agreement will secure at least 40,000 tonnes of durable carbon removal credits, making it one of the largest such deals in the aerospace sector.

Carbon removal won’t solve aviation’s emissions issue by itself. However, it can support fuel innovation, improve efficiency, and help with cleaner energy systems.

As industries move toward net-zero targets, carbon removal markets are likely to grow rapidly. For companies across transportation, the path to a low-carbon future will rely on a mix of technological breakthroughs and credible climate solutions.