👋 Watts up? Microsoft, alongside Acadia Infrastructure Capital, have pledged to invest around $9 billion into renewable energy production. This investment aims to generate over 5 gigawatts of clean energy over the next 5 years. Staying on the topic of sizable investments, Robert Habeck, Germany’s Federal Minister of Economics, has unveiled a €10 billion investment to create a state-of-the-art chip factory in Dresden. Learn more on these stories, and others, in todays issue.

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QotD: Who created the first iteration of the lithium-ion battery?

MARKETS

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ELECTRIC VEHICLES

Xiaomi Planning to Release its EVs Overseas

🚗 Xiaomi Auto is accelerating its overseas expansion to tackle China’s competitive electric vehicle market. The company is building a dedicated international automotive team, recruiting roles in market research, project management, and EV after-sales.

• Xiaomi plans small-scale vehicle sales to test demand before scaling up.

• Existing Mi Home stores—over 100 internationally—will serve as key retail channels, supporting a goal of 10,000 global stores within five years.

• Leveraging its strong smartphone presence overseas, particularly in Europe, where it holds 18% market share, Xiaomi hopes to differentiate through its interconnected “Human, Vehicle, and Home” ecosystem.

• Challenges include high tariffs and logistics costs.

Xiaomi’s ability to offer seamless connectivity between smart devices and EVs may appeal to tech-savvy consumers, positioning the company as a unique contender in the EV market.

INFRASTRUCTURE

CATL to Offer its Suppliers Financial Support

🔋 CATL is providing financial support to its suppliers to boost innovation in battery materials and equipment, alleviating supply chain pressures amid China’s EV price war.

• CATL will fund part of suppliers' R&D costs, offer advance payments for projects, and assist with certifications to accelerate new technologies.

• The move comes as the Chinese EV market faces fierce price competition, with BYD pushing aggressive price cuts and demanding further reductions from suppliers.

• CATL Chairman, Robin Zeng, emphasised the importance of a sustainable supply chain where all players remain profitable.

• CATL maintained its global leadership with a 36.8% market share in EV batteries, increasing from 35.9% in 2023, while competitors like LG Energy Solution saw declines.

• CATL continues its global expansion, announcing a third European factory in Spain with Stellantis.

By supporting suppliers, CATL aims to safeguard innovation, strengthen its supply chain, and reinforce its position in the EV battery market.

CLEAN ENERGY

Microsoft to Invest $9 Billion into Clean Energy

☀️ Microsoft, in partnership with Acadia Infrastructure Capital, has launched the Climate and Communities Investment Coalition, a $9 billion initiative to develop 5 gigawatts of renewable energy across the United States within five years.

• The CCIC aims to expand clean energy capacity while ensuring community benefits, with projects expected to power one million homes and cut 15 billion pounds of carbon emissions annually.

• The first project will be a 210-megawatt solar farm, located in Texas.

• Microsoft’s sustainability strategy includes purchasing Renewable Energy Certificates to offset emissions, aligning with its carbon-negative goal by 2030.

• Challenges persist, particularly in addressing Scope 3 emissions, which represent over 96% of Microsoft’s carbon footprint.

By combining clean energy investments, innovation, and social equity, the CCIC seeks to reshape the U.S. renewable energy sector while delivering tangible benefits for communities and businesses alike.

TECHNOLOGIES

Construction Starts on State-of-the-art Chip Factory in Dresden

📱 Germany’s Federal Minister of Economics, Robert Habeck, has announced a €10 billion investment in a state-of-the-art chip factory in Dresden, a joint venture between TSMC, Bosch, Infineon, and NXP. Supported by €5 billion in federal funding under the European Chips Act, this marks a milestone for Europe’s semiconductor industry.

• The ESMC factory will produce 12-28 nanometre chips on 300mm wafers, vital for automotive, industrial, and communication technologies.

• Once operational, it will produce 500,000 wafers annually and prioritise EU orders during crises, benefiting SMEs and start-ups.

• The project will create 2,000 direct jobs and up to 11,000 in related sectors, bolstering supply chains and regional economies.

• Collaboration with universities will strengthen research, while the facility focuses on energy efficiency and environmental standards.

This investment reinforces Europe’s semiconductor resilience, enhances innovation, and positions Dresden as a key location in global chip production.

WATT ELSE?

• Zeekr launches the 7X SUV in Europe

• Sunwoda and XTC collaborate on solid-state batteries

• Japan aims for 40-50% renewable energy production by 2040

• NXP and Wistron announce joint lab for automotive innovations

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Answer: Stanley Whittingham

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