Google’s Carbon Credit Expansion with Frontier’s $33M Bet on Rock Weathering

Google is making another major move in carbon removal by participating in Frontier’s $33 million offtake agreement with Eion Carbon. This deal plans to cut about 79,000 tons of CO₂ by 2030. It uses enhanced rock weathering (ERW), a natural way to boost carbon absorption in rocks.

Reilly O’Hara, Program Manager, Carbon Removal at Google, remarked on this deal, noting:

“This deal isn’t just about removing CO2 – it’s also about building a robust, transparent understanding of enhanced weathering’s potential. By integrating with existing agricultural systems and prioritizing data sharing, Eion will help pave the way for scalable, impactful climate solutions.” 

What is Enhanced Rock Weathering?

Eion deploys olivine, a fast-weathering rock, on Southern and Midwestern United States farmlands. This method permanently captures CO₂ while improving soil health and crop yields.

ERW stands out from traditional carbon capture methods. It fits easily into current farming practices, making it a cost-effective and scalable solution.

ERW involves spreading crushed silicate rocks, like olivine, onto farmland. When these rocks interact with rainwater, they absorb CO₂ from the air, converting it into a stable form stored in the soil or washed into the ocean.

  • Research shows that spreading crushed silicate rocks on U.S. farms could capture 0.16 to 0.30 gigatons of CO₂ each year by 2050.

Atmospheric CDR by Enhanced Weathering with US Agriculture

Source: Nature

Eion’s research extends beyond carbon capture. The company is conducting deep soil core measurements to better understand how rock-soil interactions influence carbon storage. This data will be made public, advancing the entire field of enhanced weathering.

Eion carbon removal
Source: Eion

Visit the company’s website here to learn about its step-by-step ERW processes and how they ensure each carbon credit represents real reductions.

Farming Meets Climate Tech: The Unexpected Perks for Agriculture

Agriculture plays a significant role in both emitting and removing carbon. Soil carbon sequestration, biochar, and enhanced rock weathering are emerging as promising techniques to make farming better for the climate.

  • Soil Carbon Sequestration. Certain farming practices, like no-till farming and cover cropping, can store carbon in the soil for decades. These methods can absorb up to 5 gigatons of CO₂ annually, according to the IPCC.
  • Biochar. This charcoal-like substance, made from plant waste, locks carbon into the soil while improving fertility.
  • Enhanced Rock Weathering (ERW). By applying reactive minerals like olivine to farmland, ERW offers a dual benefit—capturing CO₂ while enhancing soil productivity.

Benefits for Farmers

Farmers in the Southern and Midwestern U.S. are choosing Eion’s olivine-based product over traditional agricultural lime. This substitution offers several advantages:

  • Cost-Effective: Revenue from selling carbon removal credits allows Eion to offer its product at a lower price than conventional lime.
  • Soil Improvement: Olivine helps neutralize acidic soils, enhancing plant growth and increasing crop yields.
  • Environmental Impact: By integrating ERW into their practices, farmers contribute to reducing atmospheric CO₂ levels, playing a direct role in combating climate change.

The Role of Frontier

Frontier is a group that includes Google, Stripe, and Shopify. It helps invest in carbon removal technologies. Frontier pools resources to back innovative solutions, such as Eion’s ERW. This helps speed up their development and deployment. This collaborative effort underscores the importance of joint action in addressing climate change.

Google’s investment in ERW through Eion supports the transition toward carbon-smart agriculture. This approach could transform the agricultural sector into a major carbon sink, helping offset emissions from other industries.

Beyond Offsets: Google’s History of Carbon Removal Efforts 

Google has long been a leader in sustainability and carbon reduction. Since 2007, the company has been carbon-neutral, meaning it offsets all of its emissions by purchasing carbon credits. Here are its major carbon removal deals:

Google contracted rarbon removal portfolio
Source: Google

In 2020, Google promised to run on 100% carbon-free energy by 2030. This goal aims to cut emissions from its data centers and offices completely. Past and ongoing initiatives include:

  • Investment in Renewable Energy – Google has signed power purchase agreements (PPAs) to build solar and wind farms worldwide.
  • Direct Air Capture (DAC) – Google has previously supported carbon removal technologies like DAC, which captures CO₂ directly from the atmosphere.
  • Forest Conservation Projects – The company has funded reforestation efforts to absorb CO₂ and restore ecosystems.
  • Carbon Removal Credits – Google has backed early-stage carbon credit markets, supporting projects that remove CO₂ from the atmosphere.

Google carbon removal purchases ERW

The Frontier-Eion deal is part of Google’s broader commitment to carbon removal. This initiative removes CO₂ permanently, unlike traditional offsets. It fits well with Google’s long-term climate strategy.

Google’s Climate Strategy

Google aims to achieve net-zero emissions across its operations and supply chain by 2030. Now, it aims to eliminate emissions completely instead of just offsetting them.

Google carbon emission reductions 2023 progress
Source: Google

A key goal is running on 100% carbon-free energy (CFE) 24/7 by 2030. Currently, 64% of Google’s energy use is matched with clean sources, with some regions exceeding 90%. The tech giant has also signed 80+ renewable energy deals, totaling over 9 GW of clean energy capacity.

Google has invested $200 million in early-stage carbon removal projects. The company is pushing suppliers to adopt clean energy. It is also using AI to boost energy efficiency in its data centers.

These efforts position Google as a leader in corporate climate action, setting a standard for net-zero goals worldwide.

Carbon Capture at Scale: The Challenges and Opportunities Ahead

While ERW presents a promising avenue for carbon removal, several challenges remain. Using ERW on a large scale needs careful planning. This includes sourcing, transporting, and applying large amounts of crushed rock.

Also, accurately quantifying the amount of CO₂ removed through ERW is complex. Ongoing research aims to develop robust monitoring, reporting, and verification (MRV) frameworks to ensure transparency and effectiveness.

Lastly, reducing the costs associated with ERW is essential for widespread adoption. New methods in mining, grinding, and application can boost economic viability. 

As climate issues increase, big tech firms like Google are stepping up to manage their emissions. Its partnership with Eion through Frontier’s $33 million offtake deal marks a major advancement in carbon removal. This deal highlights the importance of high-quality, verifiable carbon removal solutions. It also underscores the potential for agriculture to play a key role in climate action. 

With Google’s leadership, enhanced weathering and other carbon removal technologies could scale up to remove millions of tons of CO₂ in the coming years. As the voluntary carbon market grows, initiatives like this will be crucial in the fight against climate change and the journey toward a net-zero future.

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Oklo Advances Its Nuclear Reactor Licensing Despite $73.6M Net Loss

oklo

Oklo’s earnings took a hit as the company reported a net loss of $73.6 million for 2024. The majority of it came from a $52.8 million operating loss. The company’s stock dropped after the report, but analysts stressed that its long-term vision matters more than the numbers. However, the company’s nuclear endeavors continue to shine.

It’s working with the U.S. Nuclear Regulatory Commission (NRC) to prepare for its upcoming license application to advance its nuclear technology.

oklo earnings
Source: Oklo

As part of this process, the NRC will review Oklo’s licensing materials in advance through a Pre-Application Readiness Assessment. This step helps both Oklo and the NRC get ready for a smoother and more efficient approval process for the Aurora Powerhouse at Idaho National Laboratory.

Oklo Advances Regulatory Approvals for Aurora Reactor

Oklo has been working with the NRC since 2016 to navigate the regulatory path for its advanced reactors. The company has already secured approval for its quality assurance program and made progress in areas like safety analysis, environmental planning, and operational procedures.

The company plans to submit its formal COLA later in 2025, with more applications in the pipeline. The license will cover the design, construction, and operation of the Aurora Powerhouse at INL.

Notably, Oklo aims to have its first Aurora powerhouse up and running by late 2027. The company secured over 14 GW in power orders, which indicates a strong demand for its nuclear technology.

NRC Readiness Assessment Starts in March 2025

The NRC will start reviewing Oklo’s plans in late March 2025. In this first step, they’ll see where the project’s location and its impact on the environment. By sorting out these important details early, Oklo can make the approval process smoother and faster.

The press release also revealed that under the 2024 ADVANCE Act, the NRC is making it easier for nuclear companies to get licenses. A big change is coming—a 55% cut in licensing fees, making the process more affordable. This new pricing will start from October 1, 2025.

Launching Its First Commercial Reactor in Idaho

On March 20, Oklo announced the launch of its first commercial powerhouse in Idaho. The company signed a MoA with the U.S. DOE and an Interface Agreement (IAG) with Idaho National Laboratory (INL). These agreements ensure Oklo follows all environmental rules while preparing the site.

It has been working closely with INL and DOE to get ready for site investigations. This includes cultural and biological surveys in partnership with the Shoshone Bannock Tribes.

DeWitte further confirmed that these agreements push them forward in building their first advanced fission powerhouse. He added that Oklo is committed to smooth and sustainable development.

Oklo’s Aurora Reactor Sets New Standards in Clean Energy

Oklo provides clean energy 24/7 to data centers, factories, industrial sites, communities, and defense facilities. It supplies heat and power through power purchase agreements.

The Aurora Powerhouse will deliver reliable, clean energy to customers and will use recycled fuel made at the Aurora Fuel Fabrication Facility. The facility will process recovered nuclear material from the EBR-II reactor into fuel for the nearby Aurora Powerhouse.

  • It can generate 15 MWe, scale up to 50 MWe, and operate for over a decade before needing refueling.

The fission pioneer also explained that they use advanced recycling techniques to keep transuranic materials together as fuel. This avoids the need to create pure material streams, which is a unique feature of fast reactors.

Notably, it’s the only company that has secured fuel for its first commercial advanced nuclear power plant.

Oklo has also developed the Radioisotope Production Facility, Atomic Alchemy with INL. This facility produces essential radioisotopes for critical and life-saving applications, strengthening the U.S. commercial supply chain.

The facility also extracts valuable radioisotope byproducts from the waste stream of Oklo’s fuel recycling process.

U.S. Nuclear Generation and Generating Capacity

As more power-hungry AI-driven data centers emerge, utilities are increasingly looking at nuclear power for grid reliability. Governments and private firms, including the big techs are investing in advanced nuclear reactors and small modular reactors (SMRs) to scale nuclear capacity efficiently.

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U.S. Copper Rush: Imports Flood in and Prices Soar as Trump Tariff Looms

COPPER

Copper prices surged on Monday as traders anticipated the outcome of potentially high U.S. import tariffs. The three-month copper price on the London Metal Exchange (LME) climbed to $9,925 per metric ton, building on last week’s gains after reaching a five-month high.

As per Bloomberg, Mercuria revealed that around 500,000 tons of copper are now headed to U.S. ports—much higher than the usual 70,000 tons per month. This spike is directly linked to expectations of new tariffs.

Bloomberg: Copper Prices Soar on Trump Tariff Speculation

Bloomberg said that copper futures on the London Metal Exchange jumped 1.9%, crossing $10,000 per ton. In New York, copper prices on Comex climbed 1.4% close to a record high before dropping back.

Since January, Comex prices have surged past international benchmarks as traders bet on U.S. import tariffs. On Monday, the price gap hit a new record of over $1,400 per ton, surpassing February’s peak after Trump announced a Commerce Department investigation into possible tariffs.

copper price
Source: Bloomberg

Explaining further, this investigation into copper imports is fueling market uncertainty. With new tariffs expected on April 2, traders are remaining cautious. This shift in supply could push prices to record highs while creating shortages in China and other markets.

Reuters highlighted Kostas Bintas, former co-head of metals at Trafigura Group, predictions on copper. He warned that global supplies could tighten sharply. Similarly, Goldman Sachs predicts that U.S. copper imports could rise by 50% to 100% in the coming months as buyers rush to secure material before tariffs hit.

Impact on the Economy

The rush of copper imports and looming tariffs could reshape industries worldwide. Here’s what industry pundits are expecting:

  • Record Prices: With 500,000 tons of copper flooding the U.S., prices could surpass $10,000 per ton. This would raise costs for construction, electronics, and electric vehicles.
  • U.S. Economic Shift: The government aims to boost domestic copper production, reducing reliance on foreign metals. This could help U.S. mining and manufacturing but also raise domestic costs.
  • Higher Inflation: Rising copper prices would increase production costs, leading to inflation across multiple sectors. Consumers already facing high living costs may feel the strain.
  • Global Supply Chain Issues: With more copper heading to the U.S., shortages could hit China, the world’s largest copper consumer. This could disrupt industries reliant on steady copper supplies.
  • Investment Changes: Companies might stock up on extra copper or look for other materials to avoid the impact of price changes. This uncertainty could lead to more investment in U.S. copper production and new alternatives.

What’s Behind the Copper Crunch?

Experts predict a 320,000-ton copper supply deficit in 2025 as demand outpaces supply. A sharp drop in U.S. copper scrap exports—crucial for a third of global production—is worsening the shortfall.

The U.S. is increasingly relying on imports to sustain the production of copper which is a highly critical metal for EVs, military tech, semiconductors, and consumer goods. Meanwhile, demand is soaring due to the rise of EVs, AI advancements, and renewable energy expansion.

Furthermore, China, setting a 5% GDP growth target, is rolling out stimulus measures to boost domestic consumption, further intensifying copper demand. Copper futures surged 12% as traders speculated that the U.S. might impose tariffs on base metal imports. In response, suppliers rushed shipments to America while tightening supply at other places.

RioTimes revealed an interesting point made by Nick Snowdon, head of metals research at Mercuria. He called this trend an “under-appreciated shock” to global markets.

Rio Tinto Bets on U.S. Copper

Amid all these developments, WSJ reported that Rio Tinto plans to expand its copper investments in the U.S. It operates the Kennecott copper mine in Utah and owns a majority stake in the Resolution Copper project in Arizona.

The company sees new opportunities after President Trump signed the executive order to speed up permitting and boost government funding for mineral projects.

Katie Jackson head of the company’s copper business confirmed this news by noting,

“We have a strong desire to invest more in the U.S., particularly in copper,” 

Copper Demand and Supply Forecast

Copper demand is set to rise sharply due to the clean energy transition.

IEA projects, cleantech applications, such as EVs and renewable energy, will drive demand from 5,380 kt in 2021 to 16,343 kt in 2040. Meanwhile, traditional uses like construction and electrical wiring will remain stable, reaching 20,036 kt by 2040.

Recycled copper supply will exceed double, from 4,123 kt in 2021 to 10,006 kt in 2040. Despite this growth, mining will still play a key role, with primary supply requirements peaking at 25,249 kt in 2030 before stabilizing.

The rising demand and supply chain concentration, primarily from China, might push for diversified sources and expanded recycling efforts.

copper demand and supply
Source: IEA

BHP, the largest mining company, predicts that copper demand from the energy transition sector will rise from 7% to 23% by 2050, according to a Kitco report.

  • Copper demand from the digital sector, including data centers, 5G, and AI, is also set to grow from 1% (current) to 6% by 2050.
  • Copper use in transportation will increase from 11% in 2021 to 20% by 2040. This rise is due to more electric vehicles on the road.
copper demand
Source: BHP

On the supply side, BHP highlighted a major challenge. The average copper ore grade has dropped by about 40% since 1991. In the next ten years, half of the world’s copper supply will face problems. Aging mines and lower ore quality will be major issues.

  • More significantly, the mining giant estimates that the industry will need $250 billion in new investments to close the growing gap between supply and demand.

BHP’s chief commercial officer Rag Udd.

“As we look towards 2050, we foresee global copper demand increasing by 70% to reach 50 million tonnes annually. This will be driven by copper’s role in both current and emerging technologies, as well as the world’s decarbonization goals.”

The U.S. is rushing to import copper ahead of possible tariffs, but the impact goes beyond supply relief. Higher prices, global supply chain disruptions, and shifting economic strategies could follow. Businesses and investors must stay ready for what’s next.

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Lithium Market Insight 2025: Price Recovery, EV Demand, and the Future of Extraction – Exclusive Interview

Lithium Market Insight 2025: Price Recovery, EV Demand, and the Future of Extraction – Exclusive Interview

The lithium market is undergoing significant changes as demand for electric vehicles (EVs) and energy storage solutions continues to rise. This soft, silvery-white metal remains at the center of the global clean energy transition. 

Let’s uncover the major market trends according to experts and significant insights shared by the head of a lithium extraction company in an exclusive interview. 

Lithium Market Trends from CERAWeek 2025

At CERAWeek 2025, industry experts highlighted key trends shaping the lithium market. Experts noted that while lithium demand remains high due to EVs and energy storage systems, the market has seen volatility. 

Lithium prices in China fell from $76,000 per ton in early 2023 to about $23,000 per ton by year’s end. This drop raised worries about supply chain stability.

One of the most pressing concerns is the lack of a strong domestic lithium supply chain in the United States. Experts say that 77% of graphite for lithium-ion batteries comes from China. Overall, 53% of the US’s graphite imports since 2023 are from China. This highlights the need to diversify supply. 

graphite from China to US
Source: S&P Global
  • Battery production drives lithium demand. In 2023, global lithium consumption hit 180,000 tons. This marks a 27% rise from last year.

S&P Global Market Intelligence and Commodity Insights predict that lithium supplies will remain in surplus until 2032. However, as of Q4 2024, the U.S. still relies heavily on imports, with most of its lithium coming from Chile and Argentina.

lithium imports 2024
Source: S&P Global

Industry leaders at the conference stressed the importance of new extraction technologies to meet future demand. An expert noted that lithium-metal batteries are 10x more powerful than lithium-ion batteries. This could change the game. They highlighted how waste lithium metal from industry could help build a circular supply chain.

Scalability remains a significant challenge, however. Companies are putting money into resource validation projects. They’re also expanding lithium extraction facilities to produce 20,000 tons each year.

The focus is now on producing lithium at a large scale. The aim is for sustainable sourcing methods to keep the lithium market stable in the long run. These insights reinforce the need for technological advancements, government support, and recycling initiatives to build a more resilient lithium industry.

This is where the unique technology of a company promising to optimize lithium production and make it eco-friendly comes in. 

François-Michel Colomar, Head of International Development at Adionics, shares insights on lithium extraction. He discusses challenges and opportunities, pricing trends, and how new technologies shape the industry’s future.  

What Factors Drive the 2025 Lithium Market Recovery?

After a turbulent 2024, the lithium market is showing early signs of recovery in 2025. Colomar attributes this rebound to the increasing demand from EV manufacturers and energy storage providers. 

François-Michel Colomar: “As global policies push for electrification and clean energy adoption, the need for lithium continues to grow. Furthermore, advancements in extraction technologies, such as Direct Lithium Extraction (DLE), are improving efficiency and reducing environmental impact. These technological improvements, combined with increased investments in domestic lithium production, are helping stabilize the market.”

Despite past price corrections, Colomar remains optimistic about sustained growth, driven by ongoing investments in sustainable lithium production.

Lithium Price Projections and Market Forces

Looking ahead, lithium prices are expected to climb to between around $15,000 and $20,000 per ton by 2028. Colomar provided insights into what key market forces will contribute to this growth. 

François-Michel Colomar: “The projected price increase of lithium is largely driven by the rising demand for EV batteries and energy storage solutions. Global lithium consumption is expected to surpass supply in the coming years, putting upward pressure on prices. 

He also highlights the role of efficient and sustainable extraction technologies in stabilizing the market while meeting increasing demand. The push for local lithium production and recycling initiatives will be crucial in reducing reliance on traditional mining operations.

The Role of New Extraction Technologies

Innovative extraction technologies are revolutionizing the lithium industry, offering more sustainable and cost-effective alternatives to traditional methods. One such advancement is DLE, which allows for selective lithium extraction with minimal environmental impact.

François-Michel Colomar: “Unlike traditional lithium mining, which relies on evaporation ponds and hard rock mining, DLE offers a more efficient and environmentally friendly alternative. It allows for higher lithium recovery rates, reduces water usage, and minimizes ecological disruption. At Adionics, our technology achieves lithium recoveries of up to 98%, making it a game-changer in sustainable lithium production.”

Adionics’ Position in the Lithium Industry

Adionics is playing a key role in advancing sustainable lithium production and battery recycling. Its technology enables the extraction of high-purity lithium from battery black mass, addressing a major challenge in the recycling process. 

Colomar emphasized their unique position in the broader lithium and battery recycling landscape.

François-Michel Colomar: “By providing a domestic alternative to overseas processing, we are strengthening the local supply chain and reducing dependence on newly mined lithium. Our approach supports a truly circular economy, ensuring that lithium resources are efficiently reused.”

Impact of EV Demand on Lithium Supply and Pricing

With global EV sales projected to reach 54.7 million units by 2030, the demand for lithium is expected to soar. Colomar predicts that this surge will create supply chain pressures, potentially leading to price fluctuations.

global EV - electric vehicle sales

François-Michel Colomar: “The rapid expansion of the EV market will undoubtedly put pressure on lithium supply chains. While increased production capacity and improved extraction methods will help balance supply and demand, the industry must also focus on recycling to supplement primary lithium sources. We anticipate some price volatility, but long-term trends indicate continued growth in lithium prices as demand outpaces supply.”

However, advancements in extraction technologies and recycling capabilities will help mitigate these challenges.

The Importance of Lithium Recycling

Recycling lithium is crucial in addressing supply chain constraints and reducing environmental impacts. Tofanni highlighted this while detailing how their technology helps in this way.

François-Michel Colomar: “With demand projected to exceed supply by 2029, recycling offers a way to recover valuable materials and reduce reliance on newly mined lithium. Adionics’ technology allows for high-purity lithium extraction from recycled batteries without producing toxic waste. This advancement is crucial in creating a closed-loop system where lithium can be reused efficiently.”

Balancing Rapid Lithium Production with Sustainability

The lithium industry faces the challenge of balancing rapid production with sustainable practices. Colomar emphasizes the need for efficient extraction technologies that minimize environmental harm.

François-Michel Colomar: “Sustainability must be a top priority. Technologies like DLE provide a solution by allowing for high lithium recovery rates without the negative environmental impact of traditional mining.”

Adionics’ lithium extraction process boosts recovery rates and purity. It also cuts water use and removes toxic by-products. These innovations enable the industry to scale up production while maintaining environmental responsibility.

Future Trends in the Lithium and Battery Industry

Looking beyond 2030, Colomar foresees major shifts in the lithium and battery industries. 

François-Michel Colomar: “First, we expect a greater emphasis on recycling and circular economy practices. Second, advancements in battery technology, such as solid-state batteries, could reduce reliance on lithium-ion cells. Lastly, the industry will see increased efforts to localize lithium supply chains, reducing geopolitical risks and ensuring stable access to this critical mineral.”

Adionics is at the forefront of these changes, driving innovation in lithium extraction and recycling. 

Lithium’s Role in the Clean Energy Transition

Lithium remains a key enabler of the clean energy transition, powering EVs and energy storage systems. As the world moves toward net-zero emissions, lithium demand will continue to grow.

François-Michel Colomar highlights the importance of integrating sustainable extraction and recycling methods to ensure a reliable lithium supply. By investing in innovative technologies, the industry can support the global shift to clean energy while minimizing environmental impacts.

The 2025 lithium market presents both challenges and opportunities. Rising demand, evolving extraction technologies, and a growing focus on sustainability will shape the industry’s future.

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Are EVs Truly Green? How Battery Recycling is Powering a Cleaner Future

battery recycling

Recycling helps recover valuable materials, cut waste, and support clean energy. With stricter sustainability rules, governments are pushing for greener solutions. EV companies are also focusing on battery recycling. This helps lower supply chain emissions and cut their carbon footprint.

Thus, battery recycling has become essential for a greener future. We have studied the Lithium-ion battery recycling report by the Chemical Abstracts Service aka CAS (a division of the American Chemical Society) and Deloitte. It provides insights into key growth drivers, emissions impact, and the current and future outlook of the market. Let’s dive in!

What’s Driving the EV Battery Recycling Market?

EV batteries have valuable metals, such as lithium, cobalt, and nickel. However, getting rid of them is difficult and this is where recycling comes in use. Thus, the rising need for these energy metals is the key driver for the EV battery recycling market.

This approach reduces waste, conserves resources, and supports a more sustainable supply chain. As demand for EVs grows, so does the need for efficient battery recycling to lessen reliance on mining.

Notably, strict environmental rules are also driving manufacturers to adopt greener practices. Advancements in recycling technology are helping recover more metal. This makes the process cheaper and better for businesses. On a global scale, many countries are promoting a circular economy.

                        Supply and demand gap for critical minerals

supply and demand critical minerals
Source: IEA Global Critical Minerals Outlook 2024, Deloitte research

Asia-Pacific Leads in Battery Recycling

In 2023, Asia-Pacific led the battery recycling market. High EV adoption in China, Japan, and South Korea increased demand for recycling. The region produces many end-of-life batteries as a major EV and battery manufacturer.

Strong government support, incentives, and environmental awareness are driving growth. Investments in recycling technology and infrastructure further strengthen the region’s lead. This is evident from more patents than research papers.

Geographical distribution of publications in the field of lithium-ion battery (LIB) recycling

China battery recycling
Source: CAS Content Collection

The Top Player: Brunp Recycling Technology

China’s Brunp Recycling Technology, a subsidiary of CATL, is a top player in battery recycling. The company focuses on four major areas of battery material development:

  • Ultra-High Nickel: Increases nickel content while reducing cobalt to boost battery capacity.

  • High Voltage: Raises the charging voltage limit while maintaining safety and performance.

  • Intelligent Management: Uses digital tools and smart systems for efficient operations.

  • Emerging Materials: Develop new materials for various applications, continuously improving energy density.

These advancements help improve battery performance, efficiency, and sustainability. Notably, Japan’s Sumitomo Metal Mining follows as another key company in this field.

Global Regulations Powering Battery Recycling

Governments are tightening laws to improve battery recycling. Policies like Extended Producer Responsibility (EPR) require manufacturers to handle waste management. EPR makes producers responsible for collecting and recycling their lithium-ion batteries. This encourages sustainable manufacturing and proper disposal.

New rules in the EU, U.S., and Asia are shaping the industry:

China’s Leadership

China introduced key recycling laws as early as 2016. In 2018, the Ministry of Industry and Information Technology (MIIT) set strict rules for battery handling, recycling traceability, and technical standards. The 2020 Solid Waste Pollution Law stopped waste imports and boosted recycling. Also, the Circular Economy Development Plan (2021-2025) prioritizes battery reuse. In 2024, MIIT suggested new standards for recycling waste batteries. They are now being reviewed.

EU Regulations

In 2023, the EU launched New Battery Regulations. These rules address the whole lifecycle of batteries, from design to end-of-life. By 2027, manufacturers must recover 50% of lithium from old batteries and 80% by 2031. Companies need to track their batteries’ carbon footprint and meet recycling content targets by 2025. Additionally, by 2027, a digital battery passport will improve transparency and traceability.

U.S. Policies

The Environmental Protection Agency (EPA) regulates lithium-ion battery (LIB) recycling under the Resource Conservation and Recovery Act (RCRA). In 2023, the U.S. issued federal guidelines clarifying how hazardous waste laws apply to LIBs. The EPA plans to introduce a dedicated LIB recycling policy by mid-2025.

India and South Korea are working on policies to support LIB recycling.

Making EVs Greener: Decarbonizing the Battery Supply Chains

The report has highlighted the most critical information on EVs. EVs have no tailpipe emissions. However, making their batteries does create a lot of carbon emissions.

  • Lithium-ion battery production accounts for 40-60% of an EV’s total emissions. 

Top automakers are now focusing on sustainable sourcing and recycling. As EV demand rises, battery recycling will be crucial for cutting carbon footprints and securing raw materials. And this is why regulators and investors are also pushing for cleaner supply chains.

Slashing Emissions and Saving Resources

Recycling lithium-ion batteries is much better for the environment than mining new metals. A study from Stanford University, published in Nature Communications, found that recycling creates less than half the emissions of traditional mining. It also uses only one-fourth of the water and energy.

The benefits are even bigger when recycling scrap from manufacturing. Scrap-based recycling created just 19% of the emissions, used 12% of the water, and needed only 11% of the energy compared to mining. Using less energy also means fewer air pollutants. So, battery recycling is a cleaner and smarter choice.

  • The study concluded that recycling reduces greenhouse gas emissions by 58–81% and cuts water use by 72–88%.

The CAS report also published a 2023 study by Fraunhofer IWKS that evaluated the life-cycle environmental impact of three major battery recycling methods- Pyrometallurgy, Hydrometallurgy, and Direct recycling. The two significant deductions are:

  • Recycling 1 kg of lithium batteries can reduce carbon emissions by 2.7 to 4.6 kg CO₂ equivalent.
  • Direct recycling is the most effective method for the environment.

      Life-cycle environmental impacts of different recycling routes of LIBs

battery recycling carbon emissions
Source: Fraunhofer IWKS, CAS report

Making Battery Recycling Profitable

Battery recycling has three phases: high-cost investment, break-even, and strong profits. Initially, recyclers invest heavily to set up facilities and meet regulations.

They can start making money by cutting costs, recovering valuable metals, and reducing waste. Costs depend on transport, labor, battery design, and recycling methods. Recyclers can stay profitable by automating tasks, lowering transport costs, and using advanced technology.

Batteries with valuable metals like cobalt and copper, such as NMC and NCA, offer quick returns. In contrast, LFP batteries provide better long-term benefits when reused before recycling.

Choosing the right recycling method—pyrometallurgy, hydrometallurgy, or direct recycling—can boost efficiency. Studies show recycling offers environmental benefits worth $3 to $11 per kWh. However, this also depends on carbon pricing and market trends.

                              Net recycling profit comparison

battery Recyling
Source: Laura Lander, 2021

Subsequently, recyclers should focus on improving their processes. They also need to form partnerships to strengthen their business.

The Future of Battery Recycling: Turning Challenges into Opportunities

Battery recycling faces hurdles like high costs, complex processes, and inefficient collection. Various battery designs and hazardous materials add further challenges. New technology, digital tools, and teamwork in the industry are making recycling cheaper and easier.

Polaris Market Research reports the EV battery recycling market was $8.89 billion in 2023. It is set to grow from $11.09 billion in 2024 to $65.71 billion by 2032, with a 24.9% annual growth rate.

battery recycling

Digital Tools Improve Efficiency

Traditional recycling relies on slow, expensive, and unsafe manual processes. Digital tools are transforming this by tracking materials, automating sorting, and improving disassembly. These innovations enhance efficiency and help companies comply with strict regulations, reducing legal risks.

For example, digital twins optimize processes, blockchain ensures traceability and cloud platforms enable real-time tracking. Umicore uses AI and cloud solutions. CATL, on the other hand, uses blockchain to track materials.

Similarly, companies like Redwood Materials, BYD, and Toyota use AI to predict optimal recycling timelines.

The Power of Industry Collaboration

The disrupted supply chain remains a major challenge. In China, only 25% of retired EV batteries go through formal recycling channels. Companies are making batteries easier to recycle. They are also working together in the supply chain to solve this issue.

In October 2023, Stellantis and Orano teamed up to recycle EV batteries and factory scrap in Europe and North America. Such collaborations are driving a more sustainable and scalable battery recycling industry.

Similarly, last December Li-Cycle Holdings Corp. resumed its collaboration with Glencore International AG, (a subsidiary of Glencore plc). Both companies will evaluate the feasibility of building a new Hub facility in Portovesme, Italy that could potentially produce critical battery materials such as lithium, nickel, and cobalt from recycled battery content.

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Greenpeace Faces $660 Million Verdict: A Turning Point for Climate Action?

Greenpeace Faces $660 Million Verdict: A Turning Point for Climate Action?

Greenpeace is facing a $660 million lawsuit by Energy Transfer Partners. The verdict is more than a legal case; it could change the climate movement significantly. The lawsuit came from Greenpeace’s involvement in the protests against the Dakota Access Pipeline (DAPL). This project has been controversial for its environmental and social effects.

The talk about the verdict often centers on free speech. But its wider effects on climate activism and the fight against fossil fuels mustn’t be overlooked.

The Dakota Access Pipeline and Its Climate Impact

The Dakota Access Pipeline is 1,172 miles long. It has sparked many environmental protests since it was built. The pipeline transports crude oil from North Dakota to refineries in other parts of the country.

Dakota Access Pipeline
Source: Wikipedia

Environmentalists say this project worsens climate change. It helps with fossil fuel extraction and burning. The Standing Rock Sioux Tribe and other activists opposed the pipeline. They feared oil spills could contaminate water sources and harm ecosystems.

Fossil fuel projects like DAPL contribute significantly to global carbon emissions. The pipeline can transport 570,000 barrels of crude oil daily. When burned, this oil releases millions of metric tons of CO₂ into the air each year.

Greenpeace opposes these projects because of the need to shift from fossil fuels to renewable energy. However, this legal verdict against the organization raises concerns about the future of climate advocacy.

Greenpeace’s Role in Climate Advocacy

For decades, Greenpeace has led the fight for the environment. They challenge companies and governments to act more decisively against climate change. The organization has been key in raising awareness about deforestation, ocean conservation, and the risks of relying on fossil fuels.

In the case of the Dakota Access Pipeline, Greenpeace supported Indigenous-led protests and helped amplify concerns about the project’s long-term environmental consequences. Energy Transfer claimed that the organization defamed them and stirred up protests. However, Greenpeace says their actions aimed to hold fossil fuel companies accountable for climate damage.

Mads Christensen, Greenpeace International Executive Director, noted:

“We are witnessing a disastrous return to the reckless behaviour that fuelled the climate crisis, deepened environmental racism, and put fossil fuel profits over public health and a liveable planet. The previous Trump administration spent four years dismantling protections for clean air, water, and Indigenous sovereignty, and now along with its allies wants to finish the job by silencing protest. We will not back down. We will not be silenced.”

Legal Threats Against Climate Activists and Climate Movement

This lawsuit shows a trend. Fossil fuel companies are using legal action more often to fight against environmental opponents. Big companies often use lawsuits called Strategic Lawsuits Against Public Participation (SLAPPs) to stop activism. SLAPPs can cost environmental groups a lot of money. This makes it tough for them to keep working.

Greenpeace’s legal battles are not unique. In recent years, companies like Shell, TotalEnergies, and ENI have also pursued legal actions against Greenpeace and other environmental groups. These lawsuits worry people. This could affect climate activists’ fight against high-emission industries.

The ruling against Greenpeace could have a chilling effect on climate activism. Environmental groups might hold back from challenging big fossil fuel companies if they worry about expensive legal issues. This could slow down efforts to hold polluters accountable and push for stronger climate policies.

The case also raises questions about how fossil fuel companies may use legal systems to avoid scrutiny. Companies like Energy Transfer can shift the conversation from their carbon footprint to the activists. This way, they avoid addressing the environmental and climate concerns raised by these groups.

Fossil Fuel Expansion vs. Climate Goals

While global leaders urge cuts in greenhouse gas emissions, fossil fuel projects keep growing. The International Energy Agency (IEA) has warned that to keep global warming below 1.5°C, no new oil and gas projects should be approved. Yet, pipelines like DAPL show that people keep investing in fossil fuels. This focus delays the shift to cleaner energy options.

Greenpeace’s opposition to such projects aligns with the broader climate science consensus that urgent action is needed. However, this lawsuit shows how fossil fuel companies fight back. They shift the focus from environmental issues to legal battles.

The growth of fossil fuel industries, especially oil and gas, creates major issues for global climate goals. This is because they emit a lot of greenhouse gases (GHG).

In 2023, CO₂ emissions from fossil fuels hit a record 37.4 billion metric tons. This is a 1.1% rise from 2022. The chart shows the industry’s emissions in the U.S.

fossil emissions in US 2023
Source: Stanford University
  • Specifically, oil and gas operations are responsible for around 15% of total energy-related emissions globally, equating to approximately 5.1 billion metric tons of CO₂ equivalent annually.

Moreover, the oil refining industry also plays a big role in GHG emissions. They rose from 1.38 billion metric tons in 2000 to 1.59 billion metric tons in 2021. ​

Methane, a potent GHG, is also a major concern in the oil and gas sector. Oil and gas operations in the United States release more than 6 million metric tons of methane each year. This worsens climate change because methane traps heat much better than CO₂. 

Burning fossil fuels for electricity and heat is the biggest source of global GHG emissions. It makes up 34% of the total. The industrial sector contributes 24% of global GHG emissions, primarily from on-site fossil fuel combustion for energy.

These stats highlight the urgent need for renewable energy. Companies must also adopt strict emission cuts to meet global climate goals.

A Precedent for Future Climate Activism?

This legal case could set a dangerous precedent. If other fossil fuel companies sue environmental groups, activism might become too expensive to continue. This would weaken one of the most powerful forces advocating for climate action.

Despite the setback, Greenpeace has vowed to continue its fight. The organization has filed an anti-SLAPP lawsuit against Energy Transfer in a Dutch court. They want to recover damages and legal costs from this case. The outcome of these legal battles could shape the future of climate advocacy and corporate accountability.

The $660 million verdict against Greenpeace is not just about free speech—it’s about the future of climate activism. As fossil fuel companies expand their legal tactics to counteract opposition, environmental organizations face increasing challenges in their fight for a sustainable future.

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Donald Trump Uses Emergency Powers to Boost U.S. Critical Mineral (and Coal?) Production

Donald Trump Uses Emergency Powers to Boost U.S. Critical Mineral (and Coal?) Production

President Donald Trump has signed an executive order to ramp up U.S. production of critical minerals. The order uses emergency powers under the Defense Production Act to increase financing, streamline permits, and encourage domestic mining and processing of minerals vital for national security and economic growth. 

The goal is to cut down on dependence on foreign suppliers, especially China. China leads the global supply chain for key minerals. The order has raised worries about its effect on the environment and how it matches climate goals.

What Are The Key Aspects of the Executive Order?

  • Defense Production Act for Critical Minerals

The executive order authorizes the use of the Defense Production Act (DPA) to provide financial support to U.S. mining and mineral processing projects. This includes loans and investments from the U.S. International Development Finance Corporation (DFC) and the Department of Defense. The goal is to speed up the production of key minerals. This includes lithium, cobalt, nickel, rare earth elements, and maybe coal.

  • Faster Permitting for Mining Projects

Trump’s order directs federal agencies to speed up the permitting process for new mining and processing facilities. The Department of the Interior has been tasked with prioritizing critical mineral production on federal lands. The administration wants to cut red tape. This will help private companies invest more in domestic mineral production.

  • Expanding the Scope of Critical Minerals

The order lets the National Energy Dominance Council add uranium, copper, potash, and gold to the list of critical minerals. Additionally, there is speculation that coal could be included. This can potentially lead to increased production of fossil fuels under the guise of national security.

Why Is the U.S. Expanding Mineral Production?

The U.S. gets 70% of its rare earth minerals from China. This makes the supply chain weak for important industries like defense, electronics, and renewable energy. China has also imposed export controls on key materials like gallium and germanium. This further increases the urgency for the U.S. to secure its own resources.

Critical minerals are key for military use, particularly antimony. They support missile systems, fighter jets, and advanced communications technology. By expanding domestic production, the U.S. aims to strengthen its defense capabilities and reduce the risk of supply chain disruptions.

Lastly, lithium, cobalt, and nickel are crucial for battery storage, electric vehicles (EVs), and renewable energy infrastructure. Boosting local production of these materials can speed up the clean energy shift and cut down on fossil fuel use.

Global Market Trends and U.S. Critical Mineral Production and Consumption

The global demand for critical minerals has been on the rise, driven by the transition to clean energy technologies. In 2023, lithium demand surged by 30%, while nickel, cobalt, graphite, and rare earth elements also saw significant increases. 

Investment in critical mineral mining grew by 10% in 2023; however, this was a slowdown compared to the 30% growth observed in 2022. This is partly due to declining prices putting pressure on producers.

investment in critical minerals 2023 IEA
Source: IEA

The United States has significant mineral resources but remains heavily dependent on imports for many critical minerals. According to the U.S. Geological Survey’s 2024 Mineral Commodity Summaries, the U.S. was 100% import-dependent for 15 nonfuel mineral commodities and over 50% import-dependent for 49 such commodities. 

America import reliance on critical minerals

For instance, aluminum consumption in 2024 reached 4.3 million metric tons, underscoring the nation’s reliance on external sources. For other minerals, refer to the following table for US 2023 consumption and production per USGS report. 

US critical minerals production and consumption 2023
Source: USGS 2024

Trump’s recent executive order targets several critical minerals, including:​

  • Rare Earth Elements (REEs): Essential for electronics, defense systems, and renewable energy technologies.
  • Lithium: Vital for battery production in electric vehicles and energy storage systems.​
  • Nickel: Used in stainless steel and battery manufacturing.​
  • Cobalt: Important for battery electrodes.
  • Graphite: Used in batteries and fuel cells.

Economic, Environmental, and Climate Implications

The EO has a significant impact on mining companies. Shares of U.S. mining companies surged following the announcement. 

MP Materials, a rare earth miner, saw its stock rise by 4.6%, while coal producer Peabody Energy gained more than 2%. However, Australian and Chinese mining companies experienced stock declines, reflecting concerns over reduced demand for imported minerals. 

The decision also has the potential to spur international trade conflicts. China and other major mineral-exporting nations may view this policy shift as a direct threat to their economic interests. This could lead to trade tensions and potential retaliatory measures, further complicating global supply chains.

Environmental Concerns and Climate Impacts

Mining and processing critical minerals contribute about 8% of global carbon emissions. Copper production emits 4.6 tonnes of CO₂ per tonne, while nickel ranges between 12 and 78 tonnes per tonne. However, these emissions do not negate clean energy benefits—EVs still produce half the lifecycle emissions of gasoline cars. Using low-carbon electricity can further lower these emissions. ​

Coal’s potential inclusion as a critical mineral raises concerns. Fossil fuels from federal lands accounted for nearly 25% of U.S. CO₂ emissions over a decade. Expanding mining on public lands risks habitat destruction and toxic contamination, with 22,500 abandoned mine sites already leaking harmful chemicals.

Securing critical minerals is key for national security and clean energy. Yet, experts also stress the need for sustainable practices. This includes recycling, improved mining tech, and carbon-cutting ideas. For example, using CO₂ to weaken rocks could make mining carbon-negative.

The Biden administration used the Defense Production Act before. This was to boost the production of battery materials in the U.S. The goal is to cut emissions and support renewable energy. In contrast, Trump’s order may list coal and other fossil fuels as critical minerals. This could slow down efforts for net-zero emissions and hurt global climate leadership. 

Expanding fossil fuel extraction on federal lands may worsen climate change, undermining progress toward emission reduction targets. ​

Conclusion: A Double-Edged Sword?

Trump’s executive order to boost critical mineral production is a significant policy shift that aims to reduce dependence on foreign sources, enhance national security, and support key industries. However, the inclusion of coal and the potential rollback of environmental safeguards raises concerns about its impact on climate goals.

As the U.S. moves forward with this strategy, it must find a balance between securing essential minerals and ensuring sustainable, environmentally responsible development. The outcome of this policy will shape not only the country’s economic future but also its role in global efforts to combat climate change.

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Aramco’s First-Of-Its-Kind Direct Air Capture Plant Powers Saudi’s Net-Zero Mission

Aramco

Aramco, a top player in energy and chemicals, has teamed up with Siemens Energy. Together, they have launched Saudi Arabia’s first Direct Air Capture (DAC) test unit. The plant can remove 12 tons of carbon dioxide from the atmosphere each year. This initiative is a big step. It will help reduce Saudi emissions and promote carbon capture technology for a more sustainable future.

Ali A. Al-Meshari, Aramco Senior Vice President of Technology Oversight and Coordination, said:

“Technologies that directly capture carbon dioxide from the air will likely play an important role in reducing greenhouse gas emissions moving forward, particularly in hard-to-abate sectors. The test facility launched by Aramco is a key step in our efforts to scale up viable DAC systems, for deployment in the Kingdom of Saudi Arabia and beyond. In addition to helping address emissions, the CO2 extracted through this process can in turn be used to produce more sustainable chemicals and fuels.”

                                Saudi Arabia Emissions

saudi arabia carbon emissions

Aramco and Siemens Energy Push for Cost-Effective DAC Expansion

The press release revealed that Aramco will use the facility to test advanced CO2 capture materials for Saudi Arabia’s climate. The company also wants to lower costs. This will make DAC technology more affordable and easier to expand in the region.

Siemens Energy is a global leader in energy technology. The company helps industries and nations cut emissions in their energy sectors. They create reliable, affordable, and sustainable energy systems.

By partnering with Siemens, Aramco can quickly scale up its DAC technology. This move will pave the way for larger DAC projects in the future.

Expanding Carbon Capture Efforts

This initiative aligns with Aramco’s broader carbon capture strategy, a key element in its goal to achieve net-zero Scope 1 and Scope 2 emissions across its wholly-owned operated assets by 2050.

It is focusing on both point-source CO2 capture and removing CO2 from the air. This is part of its circular carbon economy approach.

Building One of the World’s Largest CCUS Hubs

This launch followed the announcement when Aramco, Linde, and SLB signed a deal in December last year. They will develop one of the biggest Carbon Capture, Utilization, and Storage (CCUS) hubs in the Jubail industrial zone. Aramco has a majority stake of 60%, with Linde and SLB each owning 20%.

Starting in 2027, the Jubail CCUS hub will capture up to nine million metric tons of CO2 per year. This hub will initially capture nine million metric tons of CO2 each year. It will take emissions from three Aramco gas plants and other industrial sources.

Future phases will boost capacity even more. This reinforces Aramco’s commitment to cutting emissions and promoting sustainability. By sharing CO2 transport and storage, industrial emitters can reduce costs and risks. They also benefit from economies of scale.

Aramco’s Innovative Carbon Capture Technologies 

Other than the Jubail CCUS hub, Aramco has more innovative CCUS projects in its portfolio. They use the latest and cutting-edge technology and smart solutions to tackle emissions.

Hawiyah NGL CCS plant 

The Hawiyah NGL plant captures 45 million standard cubic feet of CO2 daily. CO2 moves 85 kilometers to the Uthmaniyah oil reservoir. There, it increases oil production and stores carbon underground. This is part of Aramco’s long-term carbon management strategy.

Mobile Carbon Capture technology

Aramco is making vehicles cleaner. Its Mobile Carbon Capture technology traps up to 25% of a car’s CO2 emissions. The captured carbon is stored on board and later unloaded at fuel stations for recycling or sequestration.

The company is also developing cleaner fuels and engine technology. Aramco doesn’t see CO2 as waste. Instead, it transforms it into valuable resources for new materials and energy.

Natural Carbon Sinks

Nature is a key ally in Aramco’s fight against emissions. The company is restoring and planting millions of mangrove trees. These natural carbon sinks absorb CO2, boost biodiversity, and conserve water. They are also building algae ponds and photobioreactors. These will help capture more CO2, beyond just trees.

ARAMCO SUSTAINABILITY INVESTMENT
Source: Aramco

Aramco’s Commitment to a Low-Carbon Future

Aramco is dedicated to cutting emissions while supplying the world’s energy needs. The company invests in low-carbon projects to help Saudi Arabia reach net-zero emissions by 2060.

It also plans to achieve net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions for its wholly owned assets by 2050, as per its sustainability report.

Emission Reduction and 2035 Target

  • Upstream carbon intensity (2023): 9.6 kg CO2e per barrel of oil equivalent (boe).

  • Scope 2 emissions (2023): 13.0 MMtCO2e under a market-based calculation.

  • 52 MMtCO2e targeted reduction by 2035 from its operations.

Aramco emissions
Source: Aramco

Aramco follows a structured approach focused on five key areas to achieve these targets. We explain them below:

1. Energy Efficiency

It focuses on energy efficiency to reduce emissions. The goal is to cut 7 MMtCO2e each year through energy-saving measures. Here are some techniques:

  • Optimizing oil and gas operations to reduce waste.
  • Using digital tools and AI to track energy use and find areas to improve.

Historic impact – Since 2000, Aramco’s Energy Management Program cut emissions by 31.43 million metric tons of CO2 equivalent (MMtCO2e) and aims to

2. Flaring and Methane Reduction

Reducing gas flaring and methane leaks is a top priority. They have invested in technologies like advanced sensors and satellite monitoring to quickly detect and fix methane leaks. The gas would otherwise be burned or released into the atmosphere.

  • Flare gas recovery – In 2023, Aramco recovered 8.9 billion standard cubic feet (scf) of flare gas, preventing unnecessary emissions.

Notably, Aramco has one of the lowest upstream methane and flaring intensities in the global energy industry. Additionally, their upstream methane emissions decreased by 5.1%
despite an increase in natural gas production.

aramco methane emissions
Source: Aramco

3. Carbon Capture and Storage (CCS)

As explained before, Carbon capture and storage is a major part of Aramco’s emissions reduction plan. With large-scale CCS projects in the pipeline, they aim to store up to 14 MMtCO2e per year by 2035.

The Jubail CCS Hub will play a major role in supporting the Kingdom’s target of capturing 44 MMtCO2e per year by 2035.

4. Expanding Renewables

Aramco is diversifying its energy portfolio. It invests in solar and wind power. The company is also exploring geothermal energy. This aims to further reduce emissions.

  • Major investments – By 2030, Aramco plans to develop 12 gigawatts (GW) of solar and wind energy.

In January 2024, Aramco’s 1.5 GW solar project, one of the largest in the region, became fully operational. Its goal is to invest in research that makes renewable energy cheaper and more efficient.

5. Natural Climate Solutions

Third-party studies show Aramco’s mangrove projects have absorbed about 445,000 tons of CO2. Their algae farms and other biological methods capture CO2 from the air effectively.

  • Carbon credit portfolio: They are also working on high-quality carbon offset projects. This helps balance emissions from tough-to-reduce sectors.

In conclusion, Aramco and Siemens Energy’s partnership is all set to transform Saudi Arabia’s carbon capture efforts. This collaboration marks a major step toward a cleaner, more sustainable future.

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Tesla’s Avoided Emissions Are Up to 49% Overstated, A Study Claims

Tesla's Avoided Emissions Are Up to 49% Overstated, A Study Claims

Tesla has established itself as a leader in the fight against climate change. It often emphasizes its role in cutting greenhouse gas (GHG) emissions by promoting electric vehicles (EVs).

In 2023, the company claimed its fleet helped avoid 20 million metric tons of carbon dioxide equivalent (CO2e) emissions. A recent study by Greenly, a firm specializing in carbon footprint measurement and management, however, questions this figure. They estimate the real avoided emissions at 10.2 to 14.4 million metric tons, which is 28-49% lower than Tesla’s claims.

What’s the basis for Greenly’s claim? Let’s find out, and how this may impact Tesla’s position and the entire industry.

Breaking Down Tesla’s Avoided Emissions Calculations

Tesla calculates avoided emissions by comparing its EV fleet to a similar fleet of ICE (internal combustion engine) vehicles. The process follows these steps:

  1. Fleet Size Calculation. Using sales data, Tesla estimates the number of active vehicles in its fleet. By the end of 2023, Greenly estimated this number to be around 5.35 million Teslas worldwide.
  2. ICE Emissions Comparison. Tesla assumes that ICE vehicles emit an average of 445 grams of CO2e per mile in the U.S. and 459 grams in Europe, based on data from Consumer Reports.
  3. EV Emissions Calculation. Tesla estimates U.S. emissions from electricity generation at 116 gCO2e/mile. But Greenly, using IEA data, finds a much higher figure of 206 gCO2e/mile.
  4. Manufacturing Emissions. Tesla estimates that making an ICE vehicle releases 10 metric tons of CO2e. In contrast, an EV generates 20 metric tons, mainly because of battery production.

Tesla found that in 2023, swapping ICE vehicles for its EVs cut emissions by 20 million metric tons. Now, let’s uncover Greenly’s calculations.

Greenly’s Findings and Discrepancies: A Reality Check for Tesla?

Greenly reanalyzed Tesla’s approach using independent emissions factors and found significant discrepancies. These include the following analysis findings:

Overestimation of ICE Vehicle Emissions. Tesla’s emissions factor for ICE vehicles is 445-459 gCO2e/mile. This is much higher than the UK standard for large diesel cars, which is 415 gCO2e/mile. This difference suggests that Tesla might have overstated the emissions avoided.

Underestimation of Grid Emissions. Tesla uses a lower emissions factor for electricity at 116 gCO2e/mile. In contrast, the IEA calculates it at 206 gCO2e/mile. This suggests Tesla might have underestimated the emissions from charging its EVs.

Mileage Assumptions: Tesla assumes its EVs travel 200,000 miles over 17 years. If this assumption were lowered to 150,000 miles, Greenly found that avoided emissions would drop significantly to 6.9 million metric tons.

  • After adjustments, Greenly estimated Tesla’s real avoided emissions at 10.2-14.4 million metric tons. This is much lower than Tesla’s reported 20 million metric tons.

What This Means for the EV Industry’s Climate Goals

EVs are widely recognized as key to reducing transportation-related GHG emissions. In 2023, the sector was the world’s second-largest source of GHG emissions with 8.24 GtCO₂. Road vehicles are the top polluters.

By 2023, the growing use of EVs helped cut CO₂ emissions from new vehicles by 11%, bringing the average down to 319 grams per mile—the lowest ever recorded. The chart below shows the difference in GHG emissions for an EV and gas-powered car.

GHG emissions of EV vs gasoline car
Source: EPA

However, accurate carbon emissions accounting is crucial. It helps maintain credibility and shows the industry’s real environmental impact.

Tesla’s potentially inflated claims could have several consequences for the broader EV market

Regulatory Scrutiny:

Exaggerating avoided emissions may result in more regulatory scrutiny of EV makers’ climate claims. If Tesla’s reports are misleading, policymakers might require stricter checks on EV carbon reduction claims.

Investor and Consumer Trust:

The EV industry has gained from high public and investor trust. This confidence comes from the promise of major emission cuts. Greenly’s findings might hurt this trust. This could make investors wary of supporting EV companies. It can also lead consumers to doubt the environmental benefits of leaving ICE vehicles behind.

Competitive Pressures:

Tesla’s competitors, including BYD, Rivian, and traditional automakers like Ford and BMW, are also marketing their EVs as low-emission alternatives. If a big player is caught exaggerating claims, it could push all EV makers to get third-party checks on their environmental impact.

The Billion-Dollar Carbon Credit Question

One of Tesla’s key revenue streams has been the sale of carbon credits to other automakers that do not meet emissions standards. Since Tesla produces only electric vehicles, it accumulates large amounts of regulatory credits.

The EV maker then sells these credits to companies still producing gasoline-powered cars. Tesla’s carbon credit sales have earned billions, with over $10.4 billion since 2017. Last year’s revenue was record high. This profit helps keep the company strong, especially in years with lower vehicle margins.

Tesla annual carbon credit revenue 2024

If Tesla’s avoided emissions claims are found to be inflated, it could undermine the credibility of its carbon credit sales. Regulatory bodies may set stricter rules for issuing and verifying carbon credits. This change could make it tougher for Tesla to profit from this market.

Also, automakers buying these credits might want more transparency. This helps them confirm they meet rules without depending on possibly inflated numbers. Any disruptions in this market could significantly impact Tesla’s bottom line.

Tesla’s Reputation at Stake: Environmental Claims Under Fire

Greenly’s findings come at a bad time for Tesla. The company already faces reputational issues because of CEO Elon Musk’s political activities. Plus, its stock price has dropped sharply. Musk’s controversial comments and changing political views have turned off some customers and investors. This has hurt Tesla’s brand image.

Moreover, Tesla’s stock has struggled in recent months, with share prices down over 25% year-to-date. The combination of financial struggles, leadership controversies, and now questions about its environmental impact could further erode confidence in Tesla’s long-term growth potential.

Moreover, governments worldwide are increasing scrutiny of corporate sustainability claims. If Tesla overstated its emissions reductions, it might face legal issues. This could include fines or losing access to incentive programs.

The Need for Transparency in Carbon Accounting

Tesla’s differences in avoided emissions estimates show a bigger problem: the EV industry needs independent and standardized carbon accounting. Without clear, verifiable methods for calculating avoided emissions, companies could mislead stakeholders about their true climate impact.

Greenly’s report says manufacturers should use 3rd-party audits for emissions claims. This is like how financial audits work to help keep their credibility. More rigorous carbon accounting would help:

  • Ensure that avoided emissions are not exaggerated to attract investment or government incentives.
  • Provide policymakers with reliable data to shape EV-related regulations.
  • Prevent backlash similar to the Dieselgate scandal, where automakers manipulated emissions data.

Tesla plays a big role in boosting EV adoption and cutting emissions. However, it’s important to check how accurate its environmental claims are. The Greenly report raises concerns about transparency in EV industry reporting.

As governments and consumers push for more rigorous climate accountability, automakers must ensure their emissions calculations are accurate and independently verified.

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