As of May 2025, significant shifts have been occurring in the fields of energy, artificial intelligence (AI), and environmental policy. Below there’s a breakdown of the latest developments:
AI’s Reliance on Critical Minerals
Did you know that AI technologies depend heavily on critical minerals such as copper, cobalt, lithium, and rare earth elements? As reported by Axios, a recent Barclays report highlights the fact that over 60% of these essential minerals are actually sourced from a limited number of developing countries. And it comes as no surprise that China dominates the processing of the majority of these minerals. It handles nearly 80% of processed cobalt and over 90% of refined rare earths.
Implications:
- The percentage amount of mineral processing that China possesses is creating a significant vulnerability in the AI supply chain.
- Countries like Chile and the Democratic Republic of Congo which are rich in these minerals have opportunities to form strategic trade relationships. But with whom? With the economies that are considered to be tech-heavy such as the US, EU, and Japan.
- One solution that could mitigate the dependency on such minerals would be boosting recycling of e-waste.
Clarifying The Confusion of Gasoline Prices
President Trump had stated that the gasoline prices have significantly dropped to a price of $1.98 per gallon. This figure was not implying the retail prices at the gas station but was referring to the wholesale price which is known as RBOB. The retail prices on the other hand was approximately $3.18 per gallon. It included additional costs of blending with ethanol, distribution, and taxes.
Legal Actions Affecting Energy Projects
Wind Projects:
- Trump administration officials have been sued from Democratic Attorneys General from across 17 states and Washington, D.C., for halting and delaying the new federal approvals of wind projects.
Climate Litigation:
- As per World Energy Data, Puerto Rico has suspiciously and quietly withdrawn its climate lawsuit against major oil companies without stating a reason. This move was after the increased legal efforts by the Trump administration against state climate litigation.
Congestion Pricing:
- As reported by The Reuters, New York City and the Metropolitan Transportation Authority have filed a legal request to prevent the Trump administration from destroying the Manhattan’s congestion pricing program. This particular program, imposes a $9 toll on most vehicles that enter Manhattan south of 60th Street during the peak hours. The same aims to alleviate traffic congestion and fund mass transit improvements.
Senate Debate on California’s Emissions Rules
Additionally, the Senate is debating the potential revocation of California’s Clean Air Act waivers. This act allows the state to set stricter standards on vehicle emissions than what can be set by federal regulations. Furthermore, Senate Minority Leader Chuck Schumer and other Democrats have warned that bypassing the parliamentarian to revoke these waivers could significantly undermine the established Senate procedures.
General Fusion’s Funding Appeal
General Fusion is a Canadian fusion energy startup that has been backed by investors like Jeff Bezos. It has publicly appealed for new capital due to unforeseen circumstances and urgent financing constraints. The startup has successfully raised over $440 million. Moreover, it is developing a unique approach which involves pistons to compress fuel pellets. This way it will be differing from traditional laser-based methods.
Challenges in U.S. Oil Production
As reported by The WSJ, Diamondback Energy which is one of the top oil producers in the Permian Basin, says U.S. shale oil production is facing a massive steep. Right now the company is cutting the number of rigs it operates on and is also shrinking its capital budget. If you’re curious why? It’s because of the global economic uncertainty and increased oil output from OPEC. These factors are making it harder for shale producers to stay profitable. Furthermore, after several years of booming growth, Diamondback is now going back, thereby marking a big shift in America’s shale oil story.
So, How Much Energy Does AI Use?
AI may seem light, almost weightless, but it runs on a heavy energy bill. Every time we train or use a big model like ChatGPT, powerful computers work nonstop in energy-hungry data centers. The Hidden Cost of ChatGPT Energy Consumption in Everyday Use Might Surprise You.
Moreover, to keep things running, these systems hugely rely on key minerals such as lithium and cobalt. These are the minerals that power the chips present inside.
As AI grows, so does its energy use. That’s why people are asking: can we make AI greener? Recycling old electronics and using cleaner power could help. But for now, building smart tech still uses a lot of real-world energy.
