In the quest for electrification and cleaner energy sources, all eyes are on lithium, a.k.a. white gold, and how the market strives with battery prices continuing to fall.
According to BloombergNEF, the dramatic lithium price dropping trend will persist for several years, making battery technology economically viable for global decarbonization efforts. Benchmark Mineral Intelligence echoes this sentiment, highlighting the impending lithium market expansion driven by surging EV demand.
What Drives Lithium Battery Prices Down?
In the past year, the price of lithium iron phosphate (LFP) battery cells in China has dropped 51% to an average of $53 per kilowatt-hour (kWh), which is significantly lower than the global average of $95/kWh last year, per BloombergNEF.
This price decrease is driven by several factors, including:
- Falling Raw Material Prices: Raw material costs, particularly for the cathode, have sharply declined. The cathode’s share of total costs for LFP cells in China dropped from 50% in early 2023 to under 30% this year.
- Overproduction: China’s battery production capacity exceeds global electric vehicle (EV) demand, leading manufacturers to cut prices to maintain market share. Average capacity utilization in Chinese battery plants fell from 51% in 2022 to 43% in 2023 and is expected to decrease further.
- Technological and Manufacturing Improvements: Companies like CATL and BYD are investing heavily in R&D, automation, and new factories, launching new products rapidly.
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One of the most essential ingredients in the production of batteries, lithium powers some of the most important devices in our everyday lives. Dramatic lithium price dropping trends will persist for several years making battery technology economically viable for global decarbonization efforts. Li-FT Power Ltd. (TSX-V: LIFT | US: LIFFF) is the fastest developing North American lithium junior. Click here to learn more about their vast lithium assets including their flagship project, a 100%-owned Yellowknife Lithium project.
A Bright Prediction for Lithium Batteries
BloombergNEF predicts that low lithium battery prices will persist for several years, significantly impacting the automotive and power sectors. At $50/kWh, battery technology is already economically viable for decarbonizing road transport globally.
A major evidence is on point. In China, pack-level prices for the most common battery chemistries have been below the $100/kWh benchmark since October 2023. Lithium iron phosphate (LFP) pack prices are now at $75/kWh, making EVs competitive with combustion cars in most segments.

Additionally, Chinese EVs are now the cheapest drivetrain by average transaction price, even excluding mini-city cars. This shift will gradually reflect outside China, benefiting commercial EV manufacturers and reducing the premium they pay for batteries.

With the lithium battery prices dropping fast, another market stands to gain a lot from it – energy storage.
Turnkey energy storage systems are 43% cheaper than a year ago. Global stationary storage installations are projected to rise to 155 GWh this year, up 61% from last year, according to BNEF data.
The narrative of perpetual battery and battery metal shortages has been challenged by recent developments. For instance, Toyota’s assertion last year that there were not enough batteries to meet global demand now appears outdated as battery prices continue to fall.
In fact, the substantial drop in battery prices in China could revolutionize the global automotive market by making EVs more affordable and accelerating the transition to renewable energy storage solutions.
More notably, it signals that the lithium market is on the verge of a significant expansion in the coming years, as what the Benchmark Mineral Intelligence highlights in its Q2 2024 Lithium Market Overview. Benchmark is a prominent provider of independent data and advisory services for the lithium-ion battery and EV supply chain.
On the Brink of a Major Expansion
While short-term volatility is expected, long-term prospects indicate a structural deficit as the lithium supply struggles to keep pace with the accelerating EV revolution.
According to Benchmark’s latest report, global lithium demand is projected to reach 1.15 million tonnes of lithium carbonate equivalent (LCE) by 2024, with an astounding 87% driven by batteries, particularly EVs—the dominant end-use application.
Looking ahead, demand is forecasted to more than double, reaching 2.89 million tonnes LCE by 2030. Batteries account for a staggering 94% of consumption, while industrial uses like glass and ceramics decline to just 6% of the total.
Simon Moores, CEO of Benchmark Mineral Intelligence remarked on this trend, saying:
“The lithium market is facing a demand tsunami from the rise of EVs that will put immense pressure on supply. Every auto maker has ambitious EV targets, and lithium-ion batteries are the enabling technology.”
On the supply side, Australia led lithium production in 2023 with a 40% global market share from hard rock mines, followed by Chile at 24%. However, Chinese production is anticipated to surpass Chile by 2025 as new projects come online.
Geographical diversification in lithium mining will increase as the market expands, yet the concentration of lithium chemical production remains high in China and South America. Significant capital investments are deemed necessary to expand current operations and meet future demand.
Benchmark’s price forecast sees spodumene concentrate, a key driver of lithium chemical prices, to average $5,000 per tonne longer-term. This translates to a lithium carbonate price of around $30,000 per tonne.
What All These Mean for Investors?
For investors, the lithium market’s growth trajectory presents opportunities across producers like Albemarle, SQM, Ganfeng Lithium, and Pilbara Minerals, as well as battery manufacturers, EV makers, and ETFs focusing on the EV supply chain. Moores emphasized that white gold is pivotal in unlocking the EV and clean energy revolution. This calls for unprecedented scaling that hinges on significantly higher prices.
Investors must meticulously navigate opportunities and threats in this dynamic market.
- LITHIUM COMPANY SPOTLIGHT: Li-FT Power: The Fastest Developing Lithium Junior
Despite recent challenges such as oversupply and lower-than-anticipated EV sales in China, which led to substantial price declines for lithium carbonate, the long-term outlook remains optimistic. Anticipated strong rebound in demand with accelerating global EV adoption suggests potential price recovery from 2025 onwards.
But the caveat? Sustained high prices are necessary to incentivize new supply to meet future demand for lithium through the decade.
The post Lithium Markets in Limbo: Next Leg Up or Down? appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

The post Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia appeared first on Carbon Credits.
Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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