This past Monday, we released our 2025 edition of Climate Tech Companies to Watch. This is the third iteration of our compiled list, which has become one of my favorite endeavors each year.
In the realm of journalism, it’s all too easy to become immersed in the latest updates, be it a fundraising event, a research publication, or a startup setback. Curating this compilation allows our team to pause and evaluate the larger landscape. Which sectors are advancing or falling behind? Which regions or nations are experiencing rapid transitions? Who seems poised for success?
This year presents a particularly intriguing phase in the climate tech arena, a consideration we weighed while selecting companies. Here are three insights I gathered during the list formation process.
1. China’s influence on energy technology cannot be overstated at this time.
To be candid, China’s advancements in cleantech are astonishing. The nation leads in the installation of wind and solar power and electric vehicle production, while also investing governmental funds into emerging technologies such as fusion energy.
We intended for this list to capture China’s rise as a global energy powerhouse and ultimately included two Chinese companies within vital sectors: renewables and batteries.
In 2024, China was responsible for the leading four manufacturers of wind turbines worldwide. Envision secured the second position, contributing 19.3 gigawatts of new capacity added last year. However, the company extends beyond wind; it’s also aiding in powering heavy industries like steel and chemicals through innovations like green hydrogen.
Batteries represent another booming sector in China, and advancements are being made in technologies beyond the lithium-ion cells that currently dominate electric vehicles and energy storage. We highlight this industry with HiNa Battery Technology, an innovative startup developing sodium-ion batteries, which could prove less expensive than existing alternatives. The company’s batteries are already deployed in electric mopeds and grid systems.
2. The surge in energy needs from data centers and AI is a pressing concern, particularly in the US.
This year, we also observed a keen focus on the escalating energy demands of data centers, including large-scale dedicated facilities that support AI applications. (Here’s a reminder to check out our Power Hungry series on AI and energy, in case it hasn’t crossed your radar yet.)
Regardless of whether their technology relates to data centers, companies are eager to demonstrate their potential value in this era of increasing energy consumption. Some are entering into lucrative agreements with tech giants that could provide the necessary funding to commercialize their products.
Kairos Power aims to be a key energy supplier, developing next-generation nuclear reactors. Last year, the company struck a deal with Google that allows the tech giant to purchase up to 500 megawatts of electricity from Kairos’s initial reactors through 2035.
In a more targeted initiative, Redwood Materials is connecting discarded EV batteries to form microgrids that could supply power to—surprise—data centers. The company’s initial setup was activated this year; although small, it serves as an intriguing illustration of a novel application for existing technology.
3. Materials remain a field ripe for breakthrough innovations.
In a recent essay accompanying the list, Bill Gates outlines the fundamental importance of innovation in advancing climate technologies. One statistic that resonated with me was that 30% of global greenhouse gas emissions stem from manufacturing processes, including those for cement and steel.
I’ve clearly reported on materials and heavy industries for many years. However, I’m continually struck by the vast need for innovation in the essential materials that structure our world.
Multiple firms featured on this year’s list concentrate on materials: Once again, we spotlight cement, which is responsible for 7% of global greenhouse gas emissions. Cemvision is pursuing the use of alternative fuels and raw materials to alleviate the pollution associated with the industry.
Additionally, Cyclic Materials is endeavoring to reclaim and recycle rare earth magnets, crucial components in everything from audio devices to electric vehicles and wind turbines. Currently, only approximately 0.2% of rare earths from recycled products are processed, yet the company is establishing multiple facilities across North America with aspirations of improving this statistic.
Our compilation of 10 Climate Tech Companies to Watch showcases enterprises we believe are positioned to aid the world in confronting and adapting to climate change, utilizing everything from conventional energy technologies to innovative materials. It represents the current state of this field, and I hope you find pleasure in exploring it further.
