As the energy transition accelerates, global demand for REEs is set to surge, raising major concerns around supply chain stability and geopolitical risks.

Magnet REEs Demand Set to Triple as EVs and Wind Power Take Off

A McKinsey report reveals that global demand for magnetic rare earth elements is projected to triple—from 59 kilotons in 2022 to 176 kilotons by 2035. This sharp rise is driven by booming electric vehicle adoption and the rapid expansion of wind power projects.

Neodymium (Nd) and praseodymium (Pr) form the core of REE magnets, while dysprosium (Dy) and terbium (Tb) are added to enhance performance in extreme conditions. Although magnetic REEs make up only 30% of REE volume, they account for over 80% of market value.

The demand surge is outpacing efforts to substitute REEs with copper coil magnets. Without sufficient supply, the world could face a 60-kiloton shortage by 2035—roughly 30% of projected demand.

The energy transition will likely lead to a surge in demand for magnetic
rare earth elements, with market balance tied to mining quotas in China

China’s REE Dominance: A Double-Edged Sword

China currently controls over 60% of global REE mining and more than 80% of refining. This dominance in the REE supply chain poses a major challenge for other countries. Light REE mining and refining are expected to remain concentrated in China through 2035 unless other regions ramp up production significantly.

Heavy REEs, critical for wind turbines, EVs, and robotics, are mostly mined in the Asia-Pacific region but still primarily processed in China. As a result, countries worldwide are scrambling to develop local REE supply chains. But even with rising investments, most current pipelines are unlikely to meet near-term demand.

Trade Tensions Trigger Rare Earth Supply Shocks

In April 2025, Beijing imposed export restrictions on several rare earth products in response to U.S. tariffs and tech restrictions. This caused rare earth magnet exports to the U.S. to plummet, disrupting global supply chains and forcing automakers outside China to partially suspend production.

However, following new trade agreements in June, shipments rebounded sharply. Reuters reported that China’s exports of rare earth magnets to the U.S. jumped 660% month-over-month in June to 353 metric tons. Yet, global export levels remained 38% lower compared to the same month in 2024, showing the lingering effects of supply disruption.

America’s Untapped Rare Earth Potential Could Shift Global Dynamics

The U.S. Geological Survey (USGS) estimates that the United States has 3.6 million tons of measured and indicated rare earth resources. They are primarily in California, Alaska, Wyoming, and Texas. Canada boasts an even larger potential, with more than 14 million tons of identified REE resources, spread across Ontario, Quebec, and the Northwest Territories.

The only active rare earth mine in the U.S. is located at Mountain Pass, California, operated by MP Materials. In 2024, it produced approximately 45,000 tons of REO (rare earth oxide) concentrate, valued at $260 million. However, the ore is still mostly shipped to China for final processing, highlighting a critical gap in domestic refining capacity.

In southeastern U.S. states like Georgia and North Carolina, monazite—a phosphate mineral rich in rare earths—is being recovered as a byproduct from heavy mineral sands. Companies like Energy Fuels and Ucore Rare Metals are exploring new separation facilities and pilot-scale processing plants to close the refining gap and build end-to-end domestic REE supply chains.

Meanwhile, Canada has over 20 advanced rare earth projects in development, with several aiming to become commercial by the late 2020s. Notably, Vital Metals began small-scale production at its Nechalacho project in the Northwest Territories in 2021. Also Appia Rare Earths & Uranium Corp. is advancing its Alces Lake project in Saskatchewan.

Together, these efforts mark a strategic push by North America to reduce dependency on China. However, challenges remain, including long permitting timelines, environmental review hurdles, and the high cost of separating and refining REEs domestically.

World Mine Production and Reserves

• ALSO READ: Trump Fast-Tracks 10 Mineral Projects: Perpetua’s Stibnite Gold to Boost U.S. Antimony

Rare Earth Market Forecast: Strong Growth, High Volatility

According to Mordor Intelligence, the global rare earth metals market is expected to grow from 196.63 kilotons in 2025 to 260.36 kilotons by 2030, at a 5.8% CAGR. The magnet application segment will lead this growth with a forecasted CAGR of 8.02%, thanks to the rising demand for NdFeB magnets in EV motors and wind turbines.

Despite the promising outlook, market volatility is expected to persist through 2025. As manufacturers adapt, many are redesigning products to minimize REE use where possible, while governments are providing financial support. Since 2020, the U.S. Department of Defense has committed over $439 million to strengthen domestic REE supply chains.

Securing the Future: Time to Diversify the REE Supply Chain

The race is on to reduce global reliance on China for rare earths. Countries must invest in domestic mining, develop recycling infrastructure, and support technological innovation to ensure a steady, sustainable supply of REEs. Regulatory reforms and international collaboration will be key to overcoming bottlenecks.

Recycling Rare Earths

Given long mine development timelines and environmental concerns, recycling offers a fast-track solution to strengthen REE supply chains. By recovering REEs from used electronics, industrial equipment, and EV motors, countries can reduce import dependence and close supply gaps.

While large-scale recycling systems are still developing, they represent a sustainable and cost-effective way to boost local supply, especially for high-value magnets.

As the energy transition speeds up, rare earth elements are essential. In the future, ensuring resilient supply chains will be critical to advancing clean energy, digital technology, and national security.

• READ MORE: Apple to Invest $500 Million in MP Materials for U.S.-Made Recycled Rare Earth Magnets 

The post Rare Earth Demand to Triple by 2035: Can the U.S. Catch Up with China? appeared first on Carbon Credits.

The durable carbon dioxide removal (CDR) market experienced its strongest quarter ever in Q2 2025, per the CDR.fyi report. Companies bought 15.48 million tonnes of durable carbon removal credits. This almost doubles the total volume contracted in all past quarters combined.

This quarter’s figure exceeded the Q1 2025 total of 13.6 million tonnes and marked a major turning point for the market. Let’s discover the top buyers, suppliers, and what CDR methods are most in demand.

Microsoft the Megabuyer: One Tech Giant, Five Massive Deals

Microsoft dominated the quarter, contracting 14.6 million tonnes across five mega‑deals. These purchases accounted for 93.8% of Q2 volumes. The largest single deal was for 6.75 million tonnes from AtmosClear, followed by around 3.7 million tonnes from CO₂ Limited.

Other deals included contracts with:

• Stockholm Exergi,
• Exomad Green (1.24 million tonnes of biochar), and 
• Hafslund Celsio. 

Microsoft has bought nearly 25 million tonnes of durable CDR since late 2020. This accounts for about 79.5% of the total market volume, according to CDR.fyi.

• SEE MORE: Microsoft (MSFT Stock) and Vaulted Deep Team Up to Unlock Almost 5M Ton of Carbon Removal from Organic Waste

Rising Stars: Non-Microsoft Buyers Step Up Their Game

Even excluding Microsoft, Q2 remained strong. Other buyers, not including the tech giant, purchased about 902,000 tonnes. This makes it the second-highest quarter for non-Microsoft purchases, just behind Q4 2024, according to CDR.fyi CSO Futures.

JPMorgan Chase accounted for 450,000 tonnes of BECCS and 50,000 tonnes of DACCS, representing about 63% of the non-Microsoft volume.

Other buyers were Wihlborgs (a Swedish real estate firm), City-owned Helsingborgshem, Frontier Buyers marketplace, Capgemini, Mitsui O.S.K Lines, SAP, and Wild Assets.

New players like Capgemini and Mitsui expanded the buyer base. They made purchases in various technical removal types and improved weathering.

• RELATED: Microsoft’s Major Biochar Deal Aims to Offset 1.24M Tonnes CO2

Biochar Delivers, BECCS Leads: Tech Showdown in the Carbon Race

BECCS led technology choices in Q2, making up 86% of contracted volume. This included Microsoft and other buyers, according to CDR.fyi CSO Futures.

Biochar is a key player in biomass carbon removal solutions (BiCRS). It achieved strong delivery performance, making up 89.4% of the 116,800 tonnes delivered this quarter. Biomass direct storage and biomass geological sequestration added another 6.6% of deliveries.

BECCS is popular due to its high technology readiness levels (TRL 7–9), especially in Nordic countries where they have forest biomass feedstock. They also have strong energy markets and new CO₂ storage projects. For example, Norway’s Longship and Northern Lights facilities are part of this effort.

In terms of suppliers, biochar producers dominated the supplier leaderboard. Five of the top six suppliers are driving nearly 90% of contracted volume via large-scale BECCS or biochar projects.

Exomad Green held the top spot, delivering ~172,000 t and selling nearly 1.76 M t of biochar carbon removal (BCR) credits in total. Other leading firms included Aperam BioEnergia, Varaha, Wakefield Biochar, and Carboneers.

Together, they contribute significant delivery and contracted volumes via high-performing biochar methods. These recurring players show consistent performance and growing commercial traction in durable CDR.

Fewer Cheques, Bigger Bets: Why VC Funding Slowed While Deals Grew

While purchase volumes soared, investment funding cooled off. In Q2, just eight CDR companies raised $122 million, down from 24 companies and $137 million in Q1.

Direct air capture startups accounted for most fundraising. This slowdown reflects a maturing market where large corporate contracts play a bigger role than venture capital for project scaling.

The strong Q2 performance signals a turning point for durable CDR. It reflects both rapid growth in purchase activity and a narrowing gap between durable methods and nature-based removals.

A recent survey found that durable credits accounted for just 200,000 tonnes of retirements in 2024. In contrast, nature-based options reached 11 million tonnes.

Buyers want durable carbon dioxide removal volumes to equal or surpass nature-based credits by 2050. This will narrow the 6:1 ratio to parity by 2030.

Buyers want clear net-zero standards, solid business case validation, and lower costs to boost durable CDR demand. About 65% of companies surveyed said stronger net-zero frameworks, like those from SBTi, drive demand.

Many investors are cautious about unproven technologies and gaps in standards. However, the record Q2 shows that major buyers are eager to invest in removal methods. These methods align with their climate goals.

What Comes Next: Can Durable CDR Close the Gap with Nature-Based Offsets?

The global CDR market is now about $2 billion. Analysts expect it to grow to $50 billion by 2030. If favorable policies and buyer demand happen, it could surpass $250 billion by 2035. McKinsey and others estimate durable, engineered CDR could scale into a trillion-dollar sector by mid-century.

Yet, challenges still exist, including:

• Fragile market liquidity
• Different credit types that aren’t interchangeable
• Price uncertainty (durable carbon credits average about $180 per tonne, while nature-based credits average $35)
• Concerns about delivery risk and credit permanence

These issues affect the market’s stability. Survey data shows that buyers usually expect prices to be lower than what suppliers predict. This is especially true for non-biochar technical removals. Cost barriers are slowing down adoption.

Q2 2025 results marked a milestone: the durable carbon dioxide removal market grew faster than ever before. Microsoft’s anchor purchases and broader corporate engagement drove 15.5 million tonnes of contracted volume—more than doubling the market size in a single quarter. BECCS and biochar led in both scale and delivery.

Still, investment slowed, and adoption barriers persist. Companies cite the need for net-zero standards, cost declines, and clearer risk frameworks. But as large-scale contracts become more common, durable CDR is shifting from early promise to practical climate action.

• READ MORE: Google, Meta, and Others Invest $41M in Carbon Removal Credits

The post Microsoft (MSFT Stock) Tops Q2 2025 Record-Breaking Surge in Durable Carbon Removal Credit Purchases appeared first on Carbon Credits.

The race to launch robotaxis is speeding up. Tesla, Saudi Arabia, and Chinese firms like WeRide are hitting big milestones. As countries and companies invest in autonomous mobility, robotaxis are fast becoming a central feature in the global shift toward safer, more efficient, and lower-emission transportation.

This article looks at new advances in the robotaxi industry. It also highlights Tesla’s robotaxi reveal and it discusses what this means for the future of transportation.

Tesla Begins Robotaxi Operations in Austin

Tesla began offering rides in its robotaxi fleet in June as part of an invitation-only pilot program in Austin. The initial fleet included roughly 10–20 Model Y vehicles, operating within a geofenced area in South Austin. Safety monitors rode along, though they lacked vehicle controls. Early rides were priced around $4.20 each.

Tesla intends to expand robotaxi service to San Francisco and other cities later in 2025. Starting in 2026, Tesla owners could also earn income by adding their vehicles to the robotaxi network.

Elon Musk confirmed a full production robotaxi vehicle—dubbed “Cybercab”—will roll out in 2026 and could cost under $30,000.

This driverless electric vehicle (EV) will be built on Tesla’s new platform. It aims for full autonomy and low-cost production. Unlike Tesla’s current vehicles, the robotaxi will have no steering wheel or pedals, marking a bold leap into full self-driving (FSD) territory.

The EV giant has been developing its FSD software for years. While current Autopilot and FSD Beta versions still require human oversight, the design of the robotaxi allows it to operate independently.

The vehicle will probably be part of a ride-hailing service. This service will use Tesla’s AI and neural network tech. It will work like Uber or Lyft, but there won’t be any human drivers.

Tesla’s early success triggered market optimism. Despite a drop in Q2 automotive revenue, the company’s stock rose on investor confidence in autonomous mobility.

• RELATED: TSLA Stock Drops on Weak Q2 2025 Earnings: Tesla Faces Carbon Credit, Margin, and Political Risks

WeRide Advances Driverless Tech in China and the Middle East

While Tesla gears up for its launch, Chinese autonomous driving pioneer WeRide is also making headlines. The company recently announced the launch of its fully driverless robotaxi service in Saudi Arabia, a first for the region.

The service is launching in NEOM. This is a futuristic megacity supported by the Saudi government. It is part of the kingdom’s Vision 20230 economic plan.

WeRide’s robotaxi service in Saudi Arabia uses electric vehicles. These cars have advanced sensors and AI systems. They can drive themselves in most situations, thanks to Level 4 autonomy—meaning the car can operate without a human driver in most conditions. This milestone is a big win for the Middle East. It shows that autonomous mobility is moving beyond classic areas like California and Shanghai.

The company also introduced a cost-cutting HPC platform. This platform makes robotaxi hardware more efficient and affordable. This innovation could cut deployment costs by up to 50%, says WeRide’s projections. This will help speed up commercialization in various markets.

In China, WeRide is expanding its driverless testing. They are focusing on Guangzhou and Shenzhen. Their fleet of electric robotaxis runs 24/7 in geofenced areas. The company’s dual focus on global expansion and hardware optimization positions it as a formidable player in the robotaxi space.

• SEE MORE: Robotaxis Are Here: Top 3 Companies That Are Driving the Future of Ride-Hailing

Saudi Arabia: A New Frontier for Robotaxis

Saudi Arabia‘s deal with WeRide is a big step for self-driving cars in new markets. NEOM’s robotaxi service launch is part of a bigger goal. It aims to create smart cities that use clean energy and advanced technology.

Saudi authorities created a good environment for autonomous vehicles. They provide testing zones, support public-private partnerships, and enhance infrastructure. These policies aim to reduce traffic, lower emissions, and improve access to transportation.

The NEOM project envisions a car-free urban core, where shared electric vehicles—many of them autonomous—move people between hubs. Robotaxis are key to this vision. Companies like WeRide and others are racing for early-mover advantage in a new billion-dollar market.

Saudi Arabia’s efforts mirror a growing global trend: emerging economies are not just watching the AV revolution—they’re shaping it.

WeRide also launched Southeast Asia’s first fully driverless shuttle bus service at Resorts World Sentosa in Singapore. It operates without any safety operator onboard.

The Robobus travels a set 1.2 km loop. It is equipped with advanced multi-sensor systems, including LiDAR and cameras that provide 360-degree perception and can detect obstacles up to 200 meters away.

This driverless shuttle service is a big step for Singapore’s autonomous mobility plans. It also improves last-mile connectivity in RWS.

Robotaxis and the Climate Clock: Why Autonomy Fuels Net-Zero Goals

The robotaxi movement is more than a tech trend—it’s part of the broader transition to cleaner, more efficient urban transport. Traditional internal combustion engine (ICE) vehicles add a lot to city emissions. Urban transport makes up about 20% of global CO₂ emissions. Robotaxis, especially when electric, offer a cleaner alternative.

Analysts predict the global robotaxi market will grow from about $0.4 billion in 2023 to $45–46 billion by 2030. This means a compound annual growth rate of 73% to 92%.

McKinsey estimates that autonomous ride-hailing services may hit $1.2 trillion in global market value by 2030. Their modeling using Los Angeles shows that robotaxis could result in this shift in urabn mobility:

Key drivers include falling hardware costs, improved AI, and stronger government support. In the U.S., China, and the EU, funding for smart mobility is growing, often tied to climate policy and energy transition goals.

Robotaxis could also improve road safety. According to the World Health Organization, over 90% of road accidents are caused by human error. Autonomous vehicles, if widely adopted, could significantly reduce fatalities and injuries. This is especially true in densely populated areas.

What’s Next for Tesla and the Robotaxi Market?

Tesla’s launch marks a crucial test—not only for the company, but for the robotaxi sector as a whole. Success could cement Tesla’s role as both an EV and autonomous tech leader. But challenges remain.

• READ MORE: Tesla’s U.S. Robotaxi Launch: A New Catalyst for TSLA Stock Growth?

For one, regulatory approval is still a hurdle. In the U.S., states such as California and Arizona allow robotaxi testing to happen. However, full approval for driverless services everywhere is still years away. Tesla must also prove its vision-based FSD approach can meet or exceed safety expectations without LiDAR.

Meanwhile, rivals like WeRide, Waymo, Cruise, and Baidu are building out services with more conventional tech stacks that combine cameras, radar, and LiDAR. These systems are generally seen as safer in the short term, but potentially more expensive and less scalable.

In the short term, Tesla may launch its robotaxi first as a supervised service or in select geofenced zones. Over time, if software reliability and safety validation improve, broader rollout could follow.

Tesla’s robotaxi success may push other car makers to speed up their AV programs. It could also boost partnerships between tech firms and cities seeking low-emission transport options.

Robotaxis are no longer science fiction. Across the globe—from California to Saudi Arabia to China—driverless EVs are hitting the roads. Tesla’s launch and WeRide’s operational breakthroughs signal a major acceleration in the autonomous mobility race.

If robotaxis succeed at scale, they could reshape how cities move, how emissions are cut, and how transportation is accessed by millions.

• FURTHER READING: Pony.ai (PONY Stock) Goes 24/7 with Robotaxis – But Can It Drive a Net-Zero Future?

The post Robotaxi Showdown: Tesla, WeRide and Saudi Arabia Shift Gears in the Self-Driving Race appeared first on Carbon Credits.

In January, President Donald Trump signed an executive order titled “Removing Barriers to American Leadership in Artificial Intelligence.” The goal was to maintain and expand America’s edge in AI technology to enhance national security, economic power, and human development.

Following up on that directive, the White House released “Winning the AI Race: America’s AI Action Plan” on July 23. The strategy aims to place the U.S. at the forefront of global AI development by fast-tracking infrastructure, encouraging innovation, and promoting international cooperation. Officials called it a transformative roadmap to power a new era of American technological dominance.

Key Highlights of America’s AI Action Plan

The plan outlines over 90 policy actions centered around three core areas:

1. Accelerating innovation
2. Building strong AI infrastructure
3. Leading global AI diplomacy and security

White House Science and Technology Policy Director Michael Kratsios said,

 “America’s AI Action Plan charts a decisive course to cement U.S. dominance in artificial intelligence. President Trump has prioritized AI as a cornerstone of American innovation, powering a new age of American leadership in science, technology, and global influence. This plan galvanizes Federal efforts to turbocharge our innovation capacity, build cutting-edge infrastructure, and lead globally, ensuring that American workers and families thrive in the AI era. We are moving with urgency to make this vision a reality.” 

Several major actions were outlined in the strategy:

• Exporting AI Technology: The U.S. Commerce and State Departments will work with industry leaders to export complete AI solutions—including hardware, software, and standards—to trusted allies.
• Faster Buildout of Data Centers: The government plans to speed up the permit process for building data centers and chip factories. It will also support workforce development in trades like electrical and HVAC services.
• Regulatory Reform: The administration will eliminate or ease federal rules that slow AI progress. Businesses will be asked to share feedback on outdated regulations that should be scrapped.
• Safeguarding Free Speech: New guidelines for government AI contracts will require that language models are free from political bias and allow open discourse.

Relaxed Environmental Rules Raise Red Flags

The plan includes fast-tracking environmental permits under the National Environmental Policy Act to ease the construction of large data centers. This also involves rolling back rules from the Clean Air Act and Clean Water Act. In return, data centers must promise to invest at least $500 million per site.

Federal agencies have also been asked to offer up government-owned land for building both data centers and their supporting energy infrastructure. These moves aim to speed up construction but have raised concerns about environmental oversight.

The Department of Energy announced four government sites where private companies will partner to build new AI data centers and power facilities. Energy Secretary Chris Wright called it “a bold step” and compared it to launching a new Manhattan Project.

• ALSO READ: Trump’s Bold $20 Billion AI Plan: Fueling America’s Data Centers with Foreign Capital 

Global Data Center Energy Use Set to Soar

AI needs a lot of electricity to power advanced servers, cooling systems, and data management. The International Energy Agency (IEA) warned that global electricity use from data centers could double by 2030, reaching more than Japan’s current energy demand.

By 2030, it could reach about 945 TWh, which is nearly 3% of total global demand.

• From 2024 to 2030, data center electricity use is projected to grow 15% each year—four times faster than other sectors.

Notably, all data center types, enterprise, colocation, and hyperscale, contribute to this rise.

The U.S. AI Infrastructure Demands Massive Power

Talking about the U.S., a report revealed that data centers and AI platforms used 4% of the nation’s electricity in 2023. The electricity use has remained steady for 20 years, but the rise of AI will likely push total demand up by 9% by 2028 and 20% by 2033.

Much of this power may come from fossil fuels like coal and natural gas, which release greenhouse gases such as carbon dioxide and methane. This could worsen global warming and increase extreme weather events.

• This surge in electricity use could lead to greenhouse gas emissions equal to 40% of the U.S.’s current annual emissions. This amount is the same as emissions coming from 540 million gasoline-powered cars.

Chart: CO2 emissions from data centers for low, mid, and high cases, along with % emissions concerning the US power sector and total emissions in 2030.

Additionally, AI data centers require large amounts of water for cooling, putting stress on water supplies in already dry regions.

Why is AI so energy-hungry?

GPUs used in AI are much more power-intensive than standard chips. Even a single ChatGPT query uses nearly 10 times the power of a Google search. Creating AI-generated images takes thousands of times more electricity than generating text.

• In 2024, ChatGPT alone used over 500,000 kilowatt-hours of electricity daily, which is equal to the power used by 180,000 U.S. homes.
• A single Meta data center consumes as much power as 7 million laptops running eight hours a day.
• In Santa Clara, California, 50 data centers use 60% of the city’s electricity, often paying lower rates than residents.

How Big Techs Are Responding to Trump’s AI Policy?

To keep up with rising energy demands, many tech companies are relying on existing power plants. In the U.S., most of these still use fossil fuels, especially natural gas. While some areas are adding renewables and battery storage, nuclear energy is gaining attention as a cleaner, steadier power source.

To begin with, Nvidia CEO Jensen Huang said,

 “America’s unique advantage that no country could possibly have is President Trump.”

Meanwhile, OpenAI and Oracle announced progress on their massive “Stargate” project. The $500 billion effort aims to create a national AI infrastructure network. The companies revealed they are developing 4.5 gigawatts of new data center capacity, more than twice the power used in San Francisco. While specific energy sources weren’t mentioned, one site in Abilene, Texas, is already up and running. The rest of the project will be rolled out in phases over the next four years.

With demand from AI and cloud services growing fast, nuclear energy is becoming a key part of the tech industry’s strategy to ensure reliable, low-carbon power.

AI Is the New Arsenal—And America Must Win

Even though critics stress the need for updated energy policies and better efficiency standards, Trump stays undeterred. He is clean on his stance. America has to dominate the artificial intelligence space.

And Secretary of State and Acting National Security Advisor, Marco Rubio, also vouches for this vision. He noted,

“Winning the AI Race is non-negotiable. America must continue to be the dominant force in artificial intelligence to promote prosperity and protect our economic and national security. President Trump recognized this at the beginning of his administration and took decisive action by commissioning this AI Action Plan. These clear-cut policy goals set expectations for the Federal Government to ensure America sets the technological gold standard worldwide, and that the world continues to run on American technology.”

• READ MORE: AI’s Energy Hunger: Data Centers Set to Use Power Equal to Japan’s by 2035

The post Trump’s Most Ambitious AI Plan to Lead America in the Global Data Center Race appeared first on Carbon Credits.