A few thoughts on energy.
(1) One of my favorite Exponential View articles is about how energy has gone from commodity to technology. This table tells the story beautifully.
(2) The cost trend is clear – batteries and solar cost curve continue to make their way downward.
This is the case on every front.
(3) We’re already beginning to see the consequences of a world with abundant energy. Australian households in 3 states are getting 3 hours of free solar generated power this summer.
(4) This means the no brainer strategy here is electrification. And the country that has most gotten that memo is China.
From the article – Today, China produces 75% of lithium-ion batteries globally and manufactures 90% of the neodymium magnets that make motors spin. That means that China controls the means of producing electric vehicles (EVs), drones, robots, and all of the other electric products that are replacing the combustion-driven machines on which America built its might.
Everything is going to be electric.
(5) China is electrifying so rapidly that it has passed Europe in per capita consumption.
But, despite this rapid increase, CO2 emissions from China are flat or declining because new capacity is all renewable.
The bulk of the addition is solar.
Every year, they increase their investment in renewable technologies
(6) China’s investments are so rapid that it is on track to be 100% renewable by 2051. At current rate, the US will get there in 2148.
In December alone, China installed more battery capacity than the US had in all of 2025.
(7) All of transportation will be electric before we know it. EV markets are accelerating quickly.
(8) Meanwhile, some clean energy projects in California can take up to 20 years.
Private energy markets in Texas, meanwhile, are leading the way. So much so that solar has already overtaken coal on the Texas grid.
The trend lines are obvious – the future is electric and renewable. Energy is now technology.
Any economy that wastes time attempting to prop up fossil fuels and attempt to keep the status quo is going to left behind.
A Learning a Day 