Artificial intelligence (AI) is changing many industries. NVIDIA, the company that designs the chips and systems that power large AI models and data centers, leads in AI technology and hardware.
The big tech company made headlines with major news about its AI investments and partnerships with Nebius and Palantir Technologies. These moves have implications for environmental sustainability, energy use, and greenhouse gas emissions.
NVIDIA’s $2B Nebius Investment Fuels AI Cloud Expansion
NVIDIA announced it will invest $2 billion in Nebius, a cloud infrastructure company. This investment aims to support AI cloud expansion and data center capacity.
NVIDIA will take an 8.3% stake in Nebius through this investment. The cloud provider plans to build AI data centers with more than 5 gigawatts of capacity by 2030. This capacity is roughly enough power for over 4 million U.S. homes.
The partnership includes early access to NVIDIA’s compute hardware and software. The companies will work together on large‑scale AI computing clusters. Nebius also received approval to build a 1.2 gigawatt data center campus in Missouri, U.S.
Nvidia (NVDA) stock saw a modest increase, while Nebius Group (NBIS) shares soared over 16% following the announcement of the investment. The deal drove significant investor confidence in Nebius.
What This Means for Energy and Emissions
AI data centers use a lot of electricity. They power powerful chips and run complex models. Building larger infrastructure without considering energy efficiency can raise carbon emissions.
But NVIDIA’s hardware and software often aim to improve performance per watt. Improved efficiency means less energy per unit of computation. Better energy use can reduce running costs and overall emissions at scale.
At CES 2026, NVIDIA unveiled its Rubin architecture for data center GPUs, claiming 40% higher energy efficiency per watt over the prior generation. Unlike single chips, Rubin unites six specialized chips into a rack-level system, slashing power for massive AI workloads while boosting speed. This advances NVIDIA’s “Green AI” for sustainable data centers.
Still, expanding data center capacity will add to total energy demand. For this reason, it is important that such expansions use low‑carbon electricity sources such as wind, solar, and hydropower.
Operational AI with Palantir: Smarter Workflows, Lower Emissions
NVIDIA and Palantir Technologies announced a collaboration to build an integrated operational AI technology stack. This stack combines the chipmaker’s accelerated computing and AI software with Palantir’s data intelligence platform.
Justin Boitano, vice president, Enterprise AI Platforms, NVIDIA, said:
“AI is redefining the infrastructure stack — demanding, latency-sensitive and data-sovereign environments require a full-stack architecture — built from silicon to systems to software. By combining Palantir’s sovereign AI OS reference architecture with NVIDIA AI infrastructure, industries and nations can turn data into intelligence with speed, efficiency, and trust.”
NVIDIA CEO Jensen Huang also noted that ‘Palantir and NVIDIA share a vision: to put AI into action, turning enterprise data into decision intelligence.’ The partnership was highlighted at NVIDIA’s GTC Washington, D.C. event.
This technology helps businesses and governments use AI to manage data and decision intelligence. It allows complex data from supply chains, logistics, and operations to feed into AI systems, which can make real‑time decisions and improve efficiency.
For example, systems built on this stack can automate workflows, optimize routes, and predict supply needs. Logistics and supply processes often involve fuel use and emissions. AI tools that help optimize these processes can help companies reduce waste and energy use.
This partnership also includes integration of NVIDIA’s AI models and tools into the Palantir platform. The combined stack supports automation and digital decision making for complex operations.
AI’s Role in Net‑Zero and Emission Reductions
AI technology has potential benefits for climate and environmental goals. AI can help sectors in many ways, such as:
- Energy systems planning: AI can optimize grid load, match supply and demand, and reduce waste.
- Industrial operations: AI can monitor and adjust machinery to cut fuel use and emissions.
- Transportation and logistics: AI routing tools can lower fuel consumption and emissions.
- Building efficiency: Smart systems can reduce energy use in heating or cooling.
These applications show that AI can support net‑zero goals across industries.
In particular, using operational AI to improve logistics and supply chains can help companies reduce emissions. AI tools can analyze traffic, weather, and delivery patterns in real time. They can recommend routes that use less fuel and avoid delays. AI can also reduce idle time for trucks, ships, and warehouse equipment.
Logistics is a major source of emissions. According to the International Energy Agency, transport accounted for about 23% of global energy-related CO₂ emissions in recent years. Freight transport alone produces roughly 40% of transport emissions.
AI optimization can lower these emissions. Research from the World Economic Forum shows that digital technologies such as AI, data platforms, and automation could cut logistics emissions by up to 10–15% by 2030. These tools improve route planning, fleet efficiency, and cargo utilization.
Industry studies show similar results. McKinsey & Company estimates that AI-based route optimization can reduce fuel use in logistics fleets by about 5–10%. Even small gains can matter at scale. For example, a large delivery fleet that burns 100 million liters of fuel per year could save 5–10 million liters annually using smarter routing systems.
These estimates help explain why companies are investing in operational AI platforms. When applied across supply chains, AI can help businesses lower fuel use, reduce emissions, and improve efficiency at the same time.
NVIDIA’s technology, including high‑performance GPUs, optimized software, and AI models, can be part of these solutions. By improving performance per watt and enabling energy‑aware workflows, the tech giant contributes to both the growth of AI and the efficiency of systems that use it.
AI for Efficiency and Sustainability
Artificial intelligence has a dual climate role:
- AI systems can be energy‑intensive and add to electricity demand.
- AI tools can also help optimize energy use in other sectors.
AI computing infrastructure continues to expand. More powerful chips and larger data centers mean higher energy use. Research shows that data center energy demand could nearly double by 2030 due to AI workloads alone. AI servers and cooling systems are energy‑intensive, and they also use significant water resources.
However, efficiency improvements and smarter energy use can reduce emissions. New hardware designs, better cooling technologies, and renewable power integration can lower the environmental footprint of AI computing.
Major cloud providers and AI infrastructure firms, including NVIDIA partners, are investing in energy‑efficient systems. This includes technologies that cut power demand and reduce heat waste.
NVIDIA’s push for next‑generation hardware, such as chips designed to improve energy efficiency per computation, helps support these goals. GPUs and AI accelerators that do more work with less energy can have a positive impact on total energy use over time.
Conclusion: Balancing Growth and Sustainability
NVIDIA’s recent news shows the company’s strategy at the center of AI growth. Its $2 billion investment in Nebius will help expand AI cloud infrastructure. The collaboration with Palantir aims to bring AI tools into complex enterprise operations.
At the same time, AI infrastructure carries environmental challenges. Data centers and high‑performance computing need vast energy. But the deployment of more efficient hardware, smarter software, and renewable energy integration can reduce this impact.
NVIDIA’s technologies, when used to improve energy use and emissions management, can help companies work toward net‑zero targets. As AI continues to grow, balancing innovation with sustainability will remain essential.
The post Nvidia’s $2B Bet in AI: Powering Innovation with Nebius and Palantir While Tackling Energy Impact appeared first on Carbon Credits.
Carbon Footprint
CATL’s Profit Surges 42% With Global Battery Demand and the Shift to a Zero-Carbon Future
Contemporary Amperex Technology Co. Limited (CATL) released its 2025 Annual Report on March 10, 2026. The report highlights strong financial growth, rapid global expansion, and continued innovation in battery technology. The company reinforced its position as the world’s largest battery manufacturer while advancing its vision of becoming a leading zero-carbon technology company.
The report explains how CATL is expanding beyond traditional battery markets. The company is applying its technology across electric vehicles, energy storage, aviation, shipping, and AI infrastructure. CATL refers to this strategy as “all-domain growth,” meaning the electrification of multiple industries through advanced battery systems.
CATL’s Strong Financial Performance Reflects Rising Battery Demand
In 2025, the company reported strong revenue growth, record battery shipments, and higher profits. At the same time, it expanded its manufacturing capacity, increased research spending, and advanced sustainability efforts to build a circular energy ecosystem.
- Revenue reached RMB 423.7 billion, a 17% increase from the previous year.
- Net profit rose to RMB 72.2 billion, growing 42% year on year
The company also generated strong operating cash flow. Net cash flow from operating activities reached RMB 133.2 billion, showing steady demand for its products and solid business performance.
Much of this growth came from the rapid expansion of electric vehicles and energy storage systems worldwide. Governments and companies continue to invest heavily in clean energy, which has increased demand for reliable battery technology.
Battery shipments played a key role in this growth. CATL sold 661 gigawatt-hours of lithium-ion batteries during the year, a 39% increase from 2024. This shows the company’s ability to scale production as global demand for batteries continues to rise.
Maintains Its Global Battery Leadership
According to data from SNE Research, the company held a 39.2% share of the global power battery market in the last year. Thereby, solidifying its leadership in the global battery market.
The company also expanded its international presence. Overseas market share reached 30%, and CATL batteries have now been installed in more than 24 million vehicles globally.
Energy storage has also become a major growth area for the company. Some notable milestones include:
- Accounted for 30.4% of global energy storage battery shipments in 2025. This allowed the company to maintain the top global position in energy storage batteries for the fifth consecutive year.
- Supported around 2,300 energy storage projects worldwide. At the same time, shipments from its energy storage system integration business grew by more than 160% compared with the previous year.
This growth reflects the increasing role of battery systems in balancing renewable energy grids and improving electricity reliability.
- Furthermore, to meet growing global demand, the company expanded its manufacturing capacity to 772 GWh by the end of 2025, with 321 GWh under construction.
It operates advanced Lighthouse factories that use digital technology and automation to boost efficiency and reduce environmental impact.
New Battery Technologies Expand Product Portfolio
The company introduced several new battery technologies during 2025, reflecting its focus on innovation and product diversification. These include the second-generation batteries, such as:
- Shenxing superfast charging
- Shenxing Pro
- Freevoy dual-power
- Naxtra
- Super Hybrid
These technologies aim to improve charging speed, increase reliability in extreme environments, and reduce dependence on critical raw materials.
Advancement of Sodium-ion Batteries
One important development is the advancement of sodium-ion batteries. These batteries offer an alternative to lithium-based technologies and can reduce reliance on limited mineral resources.
CATL expects sodium-ion batteries to see broader adoption beginning in 2026 across applications such as battery swapping systems, passenger vehicles, commercial vehicles, and energy storage.
Batteries Supporting AI Data Centers and Digital Infrastructure
Another emerging opportunity for CATL is energy infrastructure for artificial intelligence. Modern AI data centers require large and stable electricity supplies. Energy storage systems can help manage power consumption while improving efficiency.
CATL already provides storage solutions for SenseTime’s AI data center in Shanghai. The system helps optimize electricity usage and reduce operational costs.
- According to the company, the storage system saves more than 10 million kilowatt-hours of electricity every year. It also lowers electricity costs by around 7% and prevents roughly 3,000 tonnes of carbon dioxide emissions annually.
This example shows how battery technology can play an important role in supporting the growing digital economy while also reducing emissions.
Expanding Electrification Into Aviation and Shipping
The company is expanding into aviation, maritime transport, and logistics as part of its broader electrification strategy.
In aviation, subsidiary AutoFlight completed the first public flight of the world’s largest five-ton electric vertical take-off and landing (eVTOL) aircraft. This shows the potential of electric aircraft for city transport and logistics.
In shipping, its battery systems have been approved by major international maritime authorities, making them safe for use in commercial ships.
CATL batteries are already powering nearly 1,000 electric vessels worldwide. The company also launched a “Ship–Shore–Cloud” system that connects electric ships, port charging, and digital energy management to reduce emissions and improve efficiency.
Research and Innovation Strengthen Technology Leadership
Research and development are a key part of CATL’s strategy. In 2025, the company spent RMB 22.1 billion on R&D, and over the past ten years, total investment exceeded RMB 90 billion.
CATL has six research centers and about 23,000 engineers and scientists, helping it create new battery technologies and improve existing ones. By the end of 2025, it held over 54,000 patents and ranked second among Chinese companies in international patent applications.
Moreover, the company uses artificial intelligence in research and manufacturing. For example, its next-generation lithium-ion battery project won the World Economic Forum’s MINDS award, showing how AI speeds up innovation.
Building a Zero-Carbon Energy Ecosystem
CATL’s strategy goes beyond producing batteries. The company is working to create a complete zero-carbon energy ecosystem that integrates clean electricity, storage, and transportation.
- Battery swapping is an important part of this strategy. CATL has built more than 1,000 Choco-Swap stations for passenger vehicles across 45 cities in China. These stations allow drivers to replace depleted batteries with fully charged ones in minutes.
The company also operates battery swapping infrastructure for heavy-duty trucks through its QIJI Energy network. This network includes more than 300 stations across 26 provinces and supports tens of thousands of kilometers of green logistics routes. In 2025, the combined network provided more than 1.15 million battery-swapping services.
- CATL is also developing zero-carbon industrial parks and integrated renewable energy systems that combine power generation, storage, and electricity management.
One major project is located in Shandong province, where the company is building what it describes as the world’s first off-grid zero-carbon industrial park powered entirely by renewable electricity. The facility will supply green power to a lithium-ion battery plant with an annual capacity of 40 gigawatt-hours.
Advancing Circular Energy and Sustainability
Alongside business expansion, CATL continues to strengthen its sustainability commitments. In 2025, the company achieved an MSCI ESG rating of AA and was included in the S&P Global Sustainability Yearbook as well as the FTSE Emerging Index.
The company reported that its core operations reached carbon neutrality in 2025. At the same time, it is working to reduce emissions across its supply chain.
Battery recycling plays a key role in this effort. CATL recovered and processed 210,000 tonnes of used batteries during the year. From this recycling process, the company regenerated 24,000 tonnes of lithium salts, helping reduce the need for newly mined materials.
To support the development of a global circular battery economy, CATL also launched the Global Energy Circularity Commitment initiative.
Looking ahead, CATL plans to continue expanding its technology leadership and global partnerships. Growth is expected across electric vehicles, renewable energy storage, electrified transport, and digital infrastructure.
Through continued innovation, manufacturing expansion, and sustainability initiatives, CATL aims to strengthen its role in the global transition toward a zero-carbon energy system. The 2025 annual report shows that the company is not only leading the battery market but also shaping the future of clean energy worldwide.
The post CATL’s Profit Surges 42% With Global Battery Demand and the Shift to a Zero-Carbon Future appeared first on Carbon Credits.
Trafigura has signed a long-term offtake agreement to purchase lithium carbonate from the South West Arkansas (SWA) Project. Smackover Lithium is a joint venture between Standard Lithium Ltd. and Equinor ASA.
Trafigura Secures Long-Term Lithium Supply
Trafigura will purchase 8,000 metric tonnes of battery-grade lithium carbonate each year from the SWA Project. The agreement runs for ten years, bringing the total contracted supply to about 80,000 tonnes.
The contract follows a take-or-pay structure. This means Trafigura must purchase the agreed volume every year or pay for it regardless. Agreements like this are common in mining and energy because they provide financial certainty for new projects.
Deliveries will begin once the project enters commercial production. The partners expect production to start in 2028, while the final investment decision is planned for 2026. Notably, for developers, long-term supply contracts often play a key role. They signal market confidence and make it easier to secure project financing.
Gonzalo De Olazaval, Head of Metals and Minerals at Trafigura, commented:
“We are pleased to have signed this offtake agreement with Smackover Lithium, further strengthening our North American critical minerals footprint. The SWA Project is expected to provide a reliable source of battery-grade lithium carbonate produced in the United States, enhancing domestic supply chains. We look forward to collaborating with Smackover Lithium on this strategic project and to delivering this material to customers across North America and globally.”
Unlocking The South West Arkansas Lithium Project
The SWA Project sits in southern Arkansas near the borders of Texas and Louisiana. It lies within the Smackover Formation, a geological region known for lithium-rich brine deposits.
- Smackover Lithium operates the project as a joint venture. Standard Lithium owns 55%, while Equinor holds 45%, and Standard Lithium serves as the operator.
The project covers roughly 30,000 acres of brine leases. The first phase of development focuses on the Reynolds Brine Unit, which spans more than 20,800 acres. Regulators approved the unit without objections from local stakeholders. And this approval marked an important milestone for the project’s development.
The first stage of the project aims to produce about 22,500 tonnes of battery-grade lithium carbonate each year. Nearby leases offer additional space for future expansion if production increases.
Direct Lithium Extraction at the Core
The project will rely on direct lithium extraction (DLE) technology to recover lithium from underground brine.
Traditional lithium operations often use evaporation ponds that take months or even years to produce lithium chemicals. In contrast, DLE removes lithium directly from brine using specialized materials and chemical processes.
After extraction, the remaining brine is usually pumped back underground. This process helps maintain reservoir pressure and reduces surface water use.
Because of these advantages, DLE has attracted strong attention across the lithium industry. It can shorten production times and reduce the land footprint of operations. The company has spent several years testing and refining this technology. The SWA Project aims to apply it on a commercial scale.
Smackover Formation: A Rising Center for U.S. Lithium Production
The Smackover Formation stretches from central Texas to the Florida Panhandle. It is widely considered one of the most promising lithium brine regions in North America. Lithium concentrations in the formation are comparable to those found in major production areas in Argentina and Chile.
Arkansas sits at the center of this resource. The region already has a long industrial history. Oil and gas production began there in the early twentieth century. Later, the region became a key hub for bromine extraction from brine.
This industrial background created several advantages for lithium development. Infrastructure such as wells, pipelines, and processing facilities already exists. In addition, the local workforce has decades of experience handling brine extraction.
Because of this foundation, lithium production can build on existing systems rather than starting from scratch. Furthermore, the region also faces fewer water stress challenges than some lithium-rich areas in South America or the western United States. This improves the long-term feasibility of brine-based lithium projects.
Strong Resources Support the Project
The company revealed that resource estimates suggest the SWA Project holds significant lithium potential. Current studies project about 447,000 tonnes of proven lithium carbonate equivalent reserves.
This represents roughly 38 percent of the project’s measured and indicated resource base, which totals about 1.17 million tonnes of lithium carbonate equivalent.
The operation will begin production with lithium concentrations of around 549 milligrams per liter in the brine. Over its estimated 20-year operating life, the project is expected to process about 0.20 cubic kilometers of brine. The average lithium concentration during that period is expected to remain around 481 milligrams per liter.
Higher lithium grades play a major role in project economics. Strong concentrations allow producers to recover more lithium from each unit of brine. As a result, processing costs fall, and efficiency improves.
Because of this, projects with both strong grades and large resources tend to attract greater interest from investors and long-term buyers.
U.S. Lithium Potential in a Global Context
Lithium resources in the United States come from several geological sources.
- According to the latest data from the U.S. Geological Survey, measured and indicated lithium resources in the country are estimated at around 30 million tons.
These resources occur in different types of deposits, including continental brines, oilfield brines, geothermal brines, claystone deposits, hectorite, and hard-rock pegmatites.
Global exploration continues to expand the lithium resource base. And worldwide, measured and indicated lithium resources are estimated at 150 million tons. As exploration advances and new extraction technologies emerge, more regions are becoming viable sources of lithium supply.
Rising Demand from EVs, Energy Storage, and AI
Lithium demand continues to increase across several sectors. The largest driver remains the electric vehicle market.
In the United States, lithium demand for EV batteries is expected to grow by about 25% per year over the next decade. This growth rate exceeds the projected global EV demand growth of about 13 percent annually.
Energy storage is another rapidly expanding market. Large battery systems help store electricity from renewable sources such as solar and wind power and release it when demand rises.
At the same time, digital infrastructure is creating new pressure on electricity systems. Data centers that support artificial intelligence require massive amounts of energy. This trend is pushing utilities to expand battery storage capacity.
Because of these factors, the U.S. energy storage market could grow by roughly 29 percent per year, further increasing the need for lithium-based batteries.
A Practical Shift in the U.S. Lithium Story
For many years, the United States relied heavily on imported lithium materials. However, that approach is slowly changing.
Projects like the SWA development show how companies are trying to rebuild parts of the battery supply chain domestically. Instead of shipping raw materials across several continents, producers are exploring ways to supply lithium closer to battery and vehicle manufacturing centers.
The Smackover region fits naturally into this transition. Its geology, infrastructure, and long history of brine extraction already support industrial operations.
The agreement with Trafigura adds another layer of confidence. Commodity traders usually commit to long-term supply deals only when they believe a project has strong potential.
If development moves forward as planned, the SWA Project could turn southern Arkansas into a new center for lithium production. Over time, the region may shift from its long history of oil, gas, and bromine toward a growing role in supplying the battery metals needed for modern energy systems.
- READ MORE: U.S. Lithium Push: How Washington’s Bet on Lithium Americas Could Reshape the Global Market
The post Trafigura to Buy 80,000 Tonnes Over 10 Years from U.S. Smackover Project appeared first on Carbon Credits.
Carbon Footprint
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At Green Earth Group N.V. (Euronext Amsterdam: EARTH, ISIN: NL0009169515), we are committed to engineering possibilities for a greener planet with a mission to make regeneration scalable and investable for people and the planet. We are a leading end-to-end developer of high-quality, large-scale nature-based solutions that restore ecosystems and improve livelihoods.
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