The world is set to invest nearly twice as much in clean energy as fossil fuels this year, according to a new International Energy Agency report.
While fossil fuel outlays are still significant — about $1.15 trillion this year — they’ll be dwarfed by clean energy, which is expected to receive $2.15 trillion in 2025.
But the real takeaway is that the energy transition doesn’t show signs of slowing.
Plotting the two investments trends is revealing. Over the last decade, fossil fuel investment has been relatively steady, if declining slightly. There has been an uptick since a drop that coincided with the pandemic, but even that shows signs of softening this year.
But clean energy investment follows a different path, a far more aggressively positive trend: The curve is up and to the right.
For data nerds: A second-order polynomial fit to the fossil fuel investment does a reasonable job of explaining the variance (R2 = 0.74), suggesting the world might be extracting a bit more oil, coal, and gas in the near future. But the same type of equation applied to clean energy figures fits the data far better (R2 = 0.94). Unless the world takes a U-turn — something that hasn’t happened in the 10 years the IEA has collected this data, pandemic included — expect bigger clean energy numbers next year.
The big question is whether it’ll be too little, too late.
To hit net zero by 2050, the world has to invest an average of $4.5 trillion annually, according to a report from the World Economic Foundation. That’s double this year’s investment, which sounds like a lot. But analysts have previously issued overly cautious clean energy investment forecasts. The trend in the new IEA data suggests that the goal is within reach.
Clean energy’s exponential growth won’t last forever; the trend is likely to taper off in the coming years, just like it did in the mid-2010s. But as I’ve written before, these sorts of fits and starts are not unusual, and adoption of new technologies is never continuous. Instead, it’s influenced by global economic trends and the learning curve that companies face when incorporating them into their businesses.
Ultimately, by 2050, I suspect average annual investment will probably meet or exceed the $4.5 trillion annual rate that the World Economic Forum calls for. Clean energy technologies are cheaper by the year, which makes them more accessible. Indeed, 85% of electricity demand growth in the next two years is going to come from developing and emerging economies, and while cheap coal has driven the narrative in many of those, solar and wind shouldn’t be counted out.
The wildcard, of course, is data centers. In the U.S., at least, utilities are confronting demand forecasts with enormous error bars. Those forecasts may fall short, but utilities tend to err on the side of caution, which means finding more power.
Some will turn to gas turbines, others will bet on nuclear. But in the next few years — and likely over the long term — renewables paired with energy storage will have the upper hand. They’re probable winners not just because they’re getting cheaper, but because they’re modular. They can be deployed at a range of scales and prices. It’s easy for them to be everywhere, and that’s something investors love to see.
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![Exclusive: Redwood Materials lays off 10% in restructuring to chase energy storage business | TechCrunch
Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, as it restructures to better accommodate its growing energy storage business, TechCrunch has learned.
The cuts come just five months after Redwood cut 5% of its workforce, and three months after it closed a 5 million funding round that boosted the battery recycling company’s valuation to north of billion, as TechCrunch previously reported.
It’s been a difficult time in the battery industry lately. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy protection, citing “insurmountable” financial challenges. Some battery-makers have also restructured or gone out of business as the automotive industry in the U.S. has backed away from its most optimistic and ambitious plans to transition to electric vehicles.
But Redwood Materials founder and CEO JB Straubel told employees that this new round of cuts is not a sign that the company is heading down the same path.
“Redwood today is the strongest it’s ever been,” Straubel wrote in an email to the workers who weren’t laid off, according to a copy viewed by TechCrunch. “The materials business is well on its way to profitability and has an exciting roadmap ahead.”
Straubel noted that Redwood “continue[s] to dominate the US battery recycling market” but also touted the company’s “great momentum” in its new energy storage business. Redwood has recently announced deals with Crusoe AI and, most recently, electric automaker Rivian to provide recycled batteries that can be used to power those companies’ facilities. The company declined to comment beyond the contents of Straubel’s email.
In his message, Straubel wrote that “parts of the company have expanded faster than needed to support the direction” of Redwood. As a result, he said Redwood is making cuts across multiple divisions, including the engineering and operations organizations, according to an employee who was granted anonymity to discuss the layoffs.
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San Francisco, CA
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“We are confident that we can deliver on our critical projects with a smaller team that is more focused,” he wrote. “We have successfully adapted to changes in the market that have bankrupted many of our competitors.”
Straubel went on to write that he is “more excited than ever with our path ahead as we build the most integrated and cost-effective critical materials and energy storage business in the world.”
“This is a self-sustaining business and will continue to make this company more valuable over time. We have the team and the technology to do what no other company can,” he wrote.
Workers who were laid off were told by Redwood’s chief HR officer that the layoffs were made “to sharpen our focus, our work and the size of our teams to support the direction Redwood is going in the future,” according to a copy of her email, which was viewed by TechCrunch.
Employees who were laid off are receiving severance and paid health benefits, according to Straubel’s email, as well as “career transition assistance.”
“I am grateful to the approximately 135 employees who we say goodbye to today — they’ve all contributed to building Redwood,” he wrote.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Exclusive #Redwood #Materials #lays #restructuring #chase #energy #storage #business #TechCrunchBatteries,battery recycling,electric vehicles,EVs,Exclusive,Redwood Materials](https://i1.wp.com/techcrunch.com/wp-content/uploads/2023/09/53200897797_87d290a75e_o.jpg?resize=1200%2C800&ssl=1 "Exclusive: Redwood Materials lays off 10% in restructuring to chase energy storage business | TechCrunch
Redwood Materials has laid off around 135 employees, or roughly 10% of its workforce, as it restructures to better accommodate its growing energy storage business, TechCrunch has learned.
The cuts come just five months after Redwood cut 5% of its workforce, and three months after it closed a 5 million funding round that boosted the battery recycling company’s valuation to north of billion, as TechCrunch previously reported.
It’s been a difficult time in the battery industry lately. Earlier this month, battery recycler Ascend Elements filed for Chapter 11 bankruptcy protection, citing “insurmountable” financial challenges. Some battery-makers have also restructured or gone out of business as the automotive industry in the U.S. has backed away from its most optimistic and ambitious plans to transition to electric vehicles.
But Redwood Materials founder and CEO JB Straubel told employees that this new round of cuts is not a sign that the company is heading down the same path.
“Redwood today is the strongest it’s ever been,” Straubel wrote in an email to the workers who weren’t laid off, according to a copy viewed by TechCrunch. “The materials business is well on its way to profitability and has an exciting roadmap ahead.”
Straubel noted that Redwood “continue[s] to dominate the US battery recycling market” but also touted the company’s “great momentum” in its new energy storage business. Redwood has recently announced deals with Crusoe AI and, most recently, electric automaker Rivian to provide recycled batteries that can be used to power those companies’ facilities. The company declined to comment beyond the contents of Straubel’s email.
In his message, Straubel wrote that “parts of the company have expanded faster than needed to support the direction” of Redwood. As a result, he said Redwood is making cuts across multiple divisions, including the engineering and operations organizations, according to an employee who was granted anonymity to discuss the layoffs.
Techcrunch event
San Francisco, CA
|
October 13-15, 2026
“We are confident that we can deliver on our critical projects with a smaller team that is more focused,” he wrote. “We have successfully adapted to changes in the market that have bankrupted many of our competitors.”
Straubel went on to write that he is “more excited than ever with our path ahead as we build the most integrated and cost-effective critical materials and energy storage business in the world.”
“This is a self-sustaining business and will continue to make this company more valuable over time. We have the team and the technology to do what no other company can,” he wrote.
Workers who were laid off were told by Redwood’s chief HR officer that the layoffs were made “to sharpen our focus, our work and the size of our teams to support the direction Redwood is going in the future,” according to a copy of her email, which was viewed by TechCrunch.
Employees who were laid off are receiving severance and paid health benefits, according to Straubel’s email, as well as “career transition assistance.”
“I am grateful to the approximately 135 employees who we say goodbye to today — they’ve all contributed to building Redwood,” he wrote.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Exclusive #Redwood #Materials #lays #restructuring #chase #energy #storage #business #TechCrunchBatteries,battery recycling,electric vehicles,EVs,Exclusive,Redwood Materials")
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