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The Coming Era of Sustainable Energy

On February 3rd, Dr. Robin Zeng, the chairman and CEO of CATL, addressed the World Laureate Summit and the World Governments Summit in Dubai, shedding light on the future of energy and the transition to sustainable practices through zero-emission technologies. His talk underscored the pivotal role this revolution in energy will play in the evolution of civilization, akin to the shift from hunter-gatherer societies to agricultural ones.

Dr. Zeng emphasized that throughout human history, energy has been the driving force behind civilization's advancement. Each significant developmental leap has been accompanied by an energy revolution. Today's transformatiOn marks a crucial shift from fossil fuel extraction to renewable energy generation, particularly through wind and solar farms, complemented by advanced battery storage technologies.

Recent data from the International Energy Agency (IEA) and Bloomberg New Energy Finance (BNEF) reveal an 80% drop in lithium iron phosphate (LFP) battery costs and solar energy prices over the past decade, signaling an exciting time for sustainable energy solutions. CATL plays a crucial role by making renewable energy options economically viable across various applications.

For instance, in Chile and the Democratic Republic of the Congo, CATL's solar energy systems paired with storage solutions deliver electricity to remote sites at just a quarter of the cost of diesel generators. Similarly, in Pakistan, decentralized solar installations combined with CATL's energy storage significantly reduce electricity costs for local cement plants by half.

California serves as a model for future power systems, demonstrating how increased energy storage capacity can help mitigate the challenges posed by renewable energy's high penetration, such as the notorious 'duck curve.' In 2025, California's grid recorded over 1800 hours during which clean energy met or exceeded total electricity demands. This showcases the vast opportunities that arise with the concurrent development of renewable sources and energy storage.

Dr. Zeng outlines three core characteristics of the future energy system: distributed, smart, and circular. First, distributed energy systems, comprising renewable sources and advanced battery storage, will flourish globally, particularly in regions with inadequate grid infrastructure. These systems will replace a significant portion of centralized fossil fuel energy, which relies on large power plants and expansive transmission networks.

However, the high penetration of renewable sources also introduces new challenges for stable power grid operations. CATL has developed innovative grid-forming high-voltage energy storage technology that stabilizes zero-emission systems by providing frequency regulation, reactive power compensation, damping, and inertial support. This technology is essential for restarting power in cases of widespread outages. Such engineering breakthroughs have been successfully implemented in China, powering an autonomous industrial park exclusively with wind, solar, and energy storage technologies.

Moreover, Dr. Zeng anticipates future energy systems will become increasingly intelligent, capable of processing enormous data volumes and adapting to fluctuations in renewable energy production and consumption. Advanced AI algorithms will be crucial for balancing supply and demand in this new ecosystem. For example, CATL is currently utilizing AI to enhance energy management at the AI data center of SenseTime in Shanghai, effectively handling variable demands created by computational loads.

The concept of a circular economy is also central to achieving zero-emission energy. Unlike fossil fuels that are consumed only once, materials used in zero-emission systems can be recycled. CATL is leading efforts in this domain, achieving industry-high recycling rates of 99.6% for nickel and cobalt and 96.5% for lithium. Collaborations with NGOs and industry partners aim to establish stable and sustainable sources for key resources while promoting a circular economy model in the sector.

Dr. Zeng asserted that with further advancements in zero-emission technologies, the sustainable energy era is no longer a distant vision but a rapidly approaching reality. He anticipates that by 2030, we will witness the true dawn of this epoch.

To realize this goal, Dr. Zeng notes that while science reveals possibilities, engineering and manufacturing drive the pace of progress. Fundamental research remains crucial to transformative advancements, with breakthroughs in materials science, artificial intelligence, and new energy systems continuing to shape the future. However, he acknowledged that current technological capabilities may have achieved less than 30% of what is required for a fully sustainable energy system, indicating much work lies ahead.

In order for technology to effect real change, it must transcend laboratory settings and be implemented on a large scale. Innovations in fields such as supercapacitors and perovskite solar cells promise significant potential, yet significant efforts remain to bring these breakthroughs to market. Consequently, CATL is investing more than all other industry players combined into research and development.

While the battle against global warming is often viewed as a climate issue, it fundamentally represents an energy and developmental challenge. Dr. Zeng advocates for international cooperation as the most effective path forward, positioning CATL to share battery-based technologies and expertise worldwide. The company has transformed from exporting batteries in its early years to establishing local production models tailored for diverse markets while providing technological licenses to partners to build their own battery manufacturing facilities.

In accelerating the transition to sustainable energy, Dr. Zeng argues for the efficient and cost-effective scaling of advanced energy technologies on a global level. Yet, the regulatory environment in some markets, particularly concerning construction and equipment, can elevate production costs. Therefore, he proposes the establishment of special economic zones with building codes similar to those in China to enhance production efficiency, an approach validated by successful implementation in China.

Urgent action is imperative to counteract global warming, as a recent study from Columbia University warns that a 1.7°C rise in temperatures from pre-industrial levels could be reached by 2027. To combat this crisis, an immediate commitment to developing a sustainable energy system is crucial—one that requires technological breakthroughs, courage, and wisdom.

As a pioneer in energy transformation, CATL is prepared to collaborate closely with scientists, governments, businesses, and all parties dedicated to this mission. Together, we strive for a future of emission-neutral energy, ensuring a healthy and green planet for generations to come.