Energy & Technology

Tesla has formally entered into an agreement to construct its inaugural grid-scale energy storage power station in mainland China, marking a significant milestone in the company’s global energy ambitions. Announced yesterday via the Chinese social media platform Weibo, Tesla confirmed the project will play a key role in enabling more flexible grid resource management and aims to “effectively resolve pressures relating to urban power supply”. Upon completion, Tesla stated, the facility is anticipated to become the largest grid-side energy storage installation in China. Grid-scale energy storage systems such as this are increasingly critical as renewable energy capacity expands. They provide essential stability to electricity networks, particularly given the rising adoption of variable sources such as solar and wind power. The announcement follows a formal signing ceremony held in Shanghai, attended by representatives from Tesla Shanghai, local municipal authorities, and China Kangfu International Leasing Co, as reported by Chinese financial media outlet Yicai. The investment involved in the project is valued at 4 billion yuan. This development comes amid ongoing geopolitical tensions between the United States and China, with a comprehensive bilateral trade agreement yet to materialise following a series of tariffs introduced by former US President Donald Trump. However, recent negotiations in London yielded a provisional “framework” deal after two days of high-level discussions. -AFP

Rosneft Chief Executive Officer Igor Sechin stated that China is steadily advancing towards full energy independence and could emerge as a significant energy exporter in the foreseeable future. Speaking at the St. Petersburg International Economic Forum, Sechin emphasised China’s increasing influence in global energy dynamics, positioning it among the world’s foremost energy players. Sechin, a key figure in Russia’s energy landscape and close ally of President Vladimir Putin, remarked that the sweeping transformation of global energy markets is being driven by surging electricity demand, particularly across Asia and Africa, in tandem with rapid digitalisation. He noted that China, already the world’s largest crude oil importer, has been heavily investing in renewables, nuclear power and synthetic fuel technologies. “China, which has already ensured its energy security, is confidently moving towards complete energy independence, forming a stable energy balance based on its own resources,” Sechin said. He suggested that given China’s methodical approach, the country is poised to become a net energy exporter in the coming years. China currently leads global energy investment, accounting for approximately one-third of total global investment in the sector. It has also positioned itself at the forefront of nuclear energy development, underscoring a long-term strategic shift away from energy import dependency. Sechin highlighted the continued growth in electric vehicle sales as a key factor in the recent decline in motor fuel demand, warning that if this trend persists, it could significantly alter the balance of the global oil market. A major aspect of China’s energy independence strategy involves processing domestic coal resources into synthetic fuels and chemical products. According to Sechin, the country utilises around 40 million tonnes of coal annually for synthetic fuel production and over 260 million tonnes for ammonia and methanol manufacturing. Turning to global oil markets, Sechin described the OPEC+ decision to accelerate output increases as prescient, particularly in light of the ongoing geopolitical tensions between Israel and Iran. He suggested the coalition might bring forward planned production increases by approximately one year from the original schedule. He also issued a caution regarding the escalating US national debt, drawing historical parallels to the decline of past global powers including Habsburg Spain, the Ottoman Empire, and pre-revolutionary France. Sechin argued that the significant expansion of Western military-industrial spending is diverting capital away from productive sectors, a trend he views as an inadequate response to broader economic challenges facing both Europe and the United States. “There is always an asymmetrical answer,” he remarked, hinting at the emergence of alternative global economic strategies, with China at the forefront. Rosneft, which Sechin has led since 2012, is responsible for approximately 40% of Russia’s oil production, 14% of gas output, and 32% of refining capacity. The company is also Russia’s largest oil exporter to China, reflecting the deepening energy partnership between the two countries. -Reuters

South Korea has formally announced a landmark investment of approximately 7 trillion won (US$5.11 billion or RM21.74 billion) for the construction of the country’s largest artificial intelligence (AI) data centre. The project is a collaboration between SK Group and Amazon Web Services (AWS), with AWS contributing US$4 billion towards the initiative, according to a statement released by the Ministry of Science on Friday. The data centre, set to be established in the southern industrial city of Ulsan, is scheduled to break ground in September. It is expected to be fully operational by 2029, with an initial capacity of 100 megawatts. The facility will serve as a strategic hub for AI development and infrastructure, underlining South Korea’s ambition to become a global leader in high-tech innovation. During a meeting attended by President Lee Jae-myung and several senior technology executives, SK Group Chairman Chey Tae-won revealed plans to eventually scale the facility’s capacity to one gigawatt. He emphasised the strategic importance of the data centre, aiming to position it as a global AI node capable of supporting domestic and international demand. “AI is crucial for South Korea’s growth,” Chey stated, reinforcing the group’s commitment to national digital competitiveness. President Lee added that the project sets a precedent for developing advanced technology infrastructure outside the capital region. “It may set a good example that South Korea’s high-tech industry is possible not only in the metropolitan area but also in the provinces,” he said. News of the investment fuelled a surge in AI-related equities on Friday, driven by increased policy optimism. SK Hynix rose by over 3%, Kakao recorded an 11% jump, and LG CNS gained 9%, helping to lift the benchmark Kospi Index above 3,000 points for the first time in three and a half years. The government’s confirmation follows earlier media speculation regarding the SK-AWS partnership to establish a data centre in the country. -Reuters

Baidu Inc. is preparing to introduce its Apollo Go robotaxi service in Singapore and Malaysia as early as this year, according to a source familiar with the plans. The move marks a significant step in the Chinese technology giant’s strategy to accelerate its global autonomous mobility footprint. The company is currently engaged in discussions with potential partners to determine optimal business models for the two Southeast Asian markets. The source, who requested anonymity due to the confidential nature of the discussions, noted that Baidu is considering collaborations with local mobility service providers, taxi firms, and third-party fleet operators. This aligns with CEO Robin Li’s previously stated preference for an asset-light expansion model. The development comes at a time when global competition in autonomous driving is intensifying. Tesla is expected to unveil its Cybercab robotaxi network in the coming days, with CEO Elon Musk heavily promoting autonomy as a cornerstone of the electric vehicle maker’s long-term growth. Meanwhile, other Chinese players such as Apollo Go, along with US-listed firms WeRide Inc. and Pony.ai Inc., are extending their reach into the Middle East, Europe and Southeast Asia. Although Baidu has not officially commented on the plans, the initiative was earlier reported by Dow Jones Newswires. Apollo Go has been scaling rapidly. The service has deployed more than 1,000 self-driving vehicles globally, the majority of which operate within China. As of the first quarter of 2025, Apollo Go had recorded 11 million rides, surpassing Alphabet’s Waymo, which reached 10 million paid rides by 23 May. Baidu is also eyeing expansion into Europe and Turkey, with ongoing discussions involving PostAuto, a subsidiary of Swiss Post, regarding the launch of robotaxi services in Switzerland. -Bloomberg