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This is an opinion editorial by Max Keidun, the CEO of peer-to-peer bitcoin exchange Hodl Hodl.

The bitcoin lending space has suffered from several major issues in recent months and years, from the fallout of the Terra/Luna crash, impacting Celsius and BlockFi, and now FTX as well, to liquidity crunches given the sustained price drawdown, varying accusations of market manipulation and more.

All of these have led to significant losses, bankruptcies and a complete reshaping of the lending market. Many users have lost faith in bitcoin-based lending products and the market appears to be at its historical bottom, both in terms of volumes and public confidence.

As usual, the mainstream media blamed these crises on Bitcoin itself. But is any of this Bitcoin’s fault? Does it make Bitcoin any less attractive? Does it even mean that we shouldn’t consider bitcoin as lending collateral? No!Bitcoin Is Super Collateral, It’s The Lenders Who Have Failed

While Bitcoin's code is law, custodial lending platforms are trusted third parties, owned and managed by private entities. Trusted third parties are security holes. This was true before Bitcoin, and it is still true today.

Furthermore, most bitcoin lending platforms are poorly conceived, poorly developed and poorly managed. This doesn’t necessarily imply bad code. The code can be well written, properly audited and verifiably secure, but there may still be poor incentives that emerge from the design of the lending platforms. If the focus is to treat bitcoin as if it were a yielding asset, we are likely in for trouble.

The longer the “bitcoin lending” industry goes on, the clearer it becomes that most involved do not really understand how yield is generated. And as the saying goes, if you don’t know where the yield comes from, then you are the yield. What it really means is that your bitcoin is being used as the principal for risky investments, and it is likely only a matter of time before the house of cards starts to collapse.

I believe that the proper focus for integrating bitcoin into intermediated lending is to appreciate how valuable and unique bitcoin is, and to treat it as something to be borrowed against: to understand that bitcoin is super collateral. But what makes it so unique?

We can identify twelve characteristics that make it so:Bitcoin Is Liquid

Bitcoin is an extremely liquid asset. It is traded 24/7, with no weekend breaks and no banking holidays. Massive liquidity pools across a variety of fiat currencies are available globally. For lenders, this means that if you want to convert your collateral into fiat, you can do it instantly — either because the borrower has been liquidated or because the loan was repaid from the collateral.

This also allows for the hedging of risks. Bitcoin may be the only kind of loan collateral which can be instantly and dynamically hedged: a serious competitive advantage.Bitcoin Is Programmable

Bitcoin enables the creation of programmable lending products and ownership mechanisms. Among other benefits, this feature allows us to solve the problem of trusted third parties by building non-custodial lending mechanisms and storage systems. For example, we can distribute collateral claims or create conditional logic for redemption that will be automatically executed by the Bitcoin network, not the whims of a centralized financial institution.Bitcoin Is Scarce

There will only be 21 million bitcoin.Your collateral is getting more valuable over time, which means there is less incentive for you to sell, and likely more lenders who are willing to accept it. Bitcoin Is Flexibly Transparent

Bitcoin allows us to enable selective transparency of your assets when useful, but also allows complete anonymity when desired. In a lending scenario, for example, you can easily prove to a lender that you own and control the collateral under consideration.Bitcoin Is Sovereign

Bitcoin is yours. You have keys to your bitcoin just like you have keys to your house and your car. Bitcoin is your personal property. If you use a house or a car as collateral, you won't own it — your lender would. With bitcoin, you can still conditionally own it during your lending agreement. In fact, with the right tools, you can not only use but continue to use this collateral during the period of the lending agreement.Bitcoin Is Secure

Bitcoin is protected cryptographically, economically and socially. It is sensible to think of Bitcoin's lowest-level network security expanding to the set of tools built on top of it. For example, you can distribute ownership of your collateral between multiple independent parties, use offline wallets and utilize many more security methods.Bitcoin Is Market Driven

Bitcoin is the essence of a market-driven asset. The price of bitcoin reflects the market almost instantly, and it's not determined by one or several individuals. It is extremely difficult to manipulate the price of bitcoin. Bitcoin costs almost the same in fiat in any part of the world and is determined by a global market. Bitcoin Is A Real-Time Asset

Not only can we track the price of bitcoin collateral in real time, but Bitcoin's blockchain allows you to track your collateral address in real time also. Any price fluctuation can be reacted to appropriately. As mentioned, there are no weekends or holidays, and the market is always open to everyone, so nobody will close the market on a Friday and open on a Monday with different prices.Bitcoin Is Objective

Bitcoin is honest. Bitcoin in Miami costs the same amount of fiat as it does in Lugano or Riga. Bitcoin doesn't care whether you like it or not. The price of bitcoin cannot be determined by your personal views or your forecasting capabilities. To borrow against bitcoin, you only need to have bitcoin. Your credit history, social score or anything else is irrelevant to the lender as long as you have the collateral to borrow against.

Take real estate, for example. The same amount of money can buy you different properties in different countries with the same levels of economic and social development. What makes the difference then? Why can you buy a mansion on the coast of the Mediterranean in Spain or Italy and, for the same amount of money, you won’t be able to afford a proper house in the Bay Area in the U.S.?

It’s due to humans' irrational valuation capabilities. Because real estate valuation is primarily based on human factors, banks evaluate your property as either too expensive or too cheap, depending on market conditions and their plans.

Or take stocks, for example. Your stocks in a certain company can have good underlying conditions and great potential growth opportunities, but suddenly the CEO of this company can tweet some stupid thing, and you are losing money or getting liquidated. Meanwhile, Bitcoin is fair.Bitcoin Is Global

Bitcoin is globally accessible and globally distributed. For lending, this means that you can borrow remotely from anyone in the world, and you can lend money using bitcoin as collateral to anyone in the world. Bitcoin is neither limited to, nor exclusively exposed to, specific local markets.Bitcoin Is Digital

In a digital age, with digital commerce, we need digital collateral. Bitcoin is already online. It's here, on your machine, your phone, your cold wallet. Bitcoin allows you to borrow remotely and instantly. There is no need to digitize bitcoin as you need to do with real estate, land, cars or any other assets. It's already digital. Bitcoin Is Decentralized

There is no single point of failure in Bitcoin. Bitcoin has been attacked multiple times, and yet it is growing and expanding globally. No committee or person is responsible for Bitcoin. Having decentralized collateral significantly decreases your dependence on single events and failures of companies or people. You are protected by a distributed network. Will Lending Ever Match Bitcoin’s Potential?

Powerful collateral requires powerful tools. Is it possible to build lending tools that will match bitcoins' value? In order to do so, we all need to take a step back and check Bitcoin's white paper.

After reading Bitcoin’s white paper, you will understand that in order to build a successful lending product (in fact, any type of Bitcoin product!), you need to meet three main criteria. If your product has all three, congrats you have passed the test. Let's call it “The Satoshi Test.”Your service should be non-custodial. Remember: not your keys, not your coins. When using custodial lending platforms, you are exposed to the risk of losing your collateral completely. Because, as soon as bitcoin hit platform wallets, they are no longer yours. This is exactly what happened to customers of the many lending and trading platforms that have failed in 2022.Bitcoin is a peer-to-peer, electronic cash system. Once again: peer to peer. Instead of acting like a middleman, you need to provide technical tools for individuals or businesses to operate with each other. Or you can be a business that will allow customers to directly interact with your platform. A good example is a platform that allows customers to buy bitcoin directly into their own cold storage. Your platform should be Bitcoin only, meaning that the only collateral you should work with should be bitcoin. Shitcoins are risky, and shitcoins' code is a ticking time bomb. By integrating many blockchains into your product, you are exposing the most valuable to the most vulnerable.

There is an extra criteria that could be met: anonymity. If you are building non-custodial, Bitcoin-only, peer-to-peer products, this can and will allow you to offer anonymity and better privacy for your customers because security is not full without anonymity and the data of your customers should be protected, as well as their funds.

A good way to pass The Satoshi Test is to utilize multisig. Multisig is a simple and secure yet powerful tool. It allows you to offer peer-to-peer interactions to users, leverage non-custodial escrows and use only Bitcoin. It also allows you to offer better privacy for your users.

Take, for example, a multisig setup with three keys where the consensus mechanism is reached by entering at least two keys. This is called “two-out-of-three Bitcoin multisig.” In that type of setup, you — as a technical tool provider — can become one of the key holders, but you won’t have full control over customer funds (because you only have one key!), thus ensuring that these funds won’t be moved and rehypothecated. For example, the lender will have one key, the borrower will have another one, and the provider will have the third key. This kind of setup will allow users to verify that funds are only used by them, and that all parties must act according to rules in order to reach consensus, and that no single party can act in a dubious and shady way.

In fact, there are already powerful platforms that use Bitcoin multisig and offer peer-to-peer interactions. These platforms can provide lenders and borrowers from all over the world with easy two-out-of-three multisig setups, where each side (including the platform itself) has one key. The multisig is created on Bitcoin’s public blockchain, meaning that you can check your collateral at any time through any block explorer. And the best part is that no funds can be rehypothecated because the platform itself only has one key that ensures that every involved counterparty is acting in a good and professional way. Proper Lending Platforms Might Be Useful For HODLers

Although the lending market at the moment is experiencing turbulence and contagion effects, it is a good time to educate yourself about proper lending platforms that might be useful for any true HODLer in the future. As soon as we enter the next bull cycle, there will be less incentive to sell bitcoin and more interest in holding it for the long term and borrowing against it. Be prepared, because bear markets don’t last forever. HODL and learn!

This is a guest post by Max Keidun. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Which MLB pitchers are throwing their best stuff most often, and who shouldn’t be?

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Which MLB pitchers are throwing their best stuff most often, and who shouldn't be?

Pitching is about keeping hitters guessing — and about walking the line between overusing certain pitches to the point of predictability and underusing others that have quietly confounded opponents in limited doses. Now more than ever, each MLB pitcher’s repertoire is scientifically calibrated, from the shape of the ball’s arc as it approaches the plate to the spin it carries and how it looks coming out of the hand. Modern pitchers take their pitch selection as seriously as a Michelin chef planning a gourmet menu.

But even with all of that sophistication, there are inefficiencies in how pitchers deploy their stuff. Many years ago, I dove into the game theory behind pitch selection, and specifically which pitchers were throwing their different pitch types in an optimal way versus those who could stand to tweak their pitch mix a bit to achieve better results.

The thought process went like this: We know from Statcast data how frequently each pitcher throws each type of pitch, and thanks to websites such as FanGraphs, we also know how effective each pitcher’s pitches have been at preventing runs. (We now even know how good each pitch should be based on its characteristics, such as velocity, movement, spin and other factors.)

From this data, we can then find cases where there are mismatches between a pitcher’s most effective pitches and the ones he uses the most.

Of course, not every pitch can be scaled up without diminishing returns. But in general, pitchers who lean more heavily on their best pitches are likely getting more out of their repertoire than those who don’t.

I then developed what I call the Nash Score for pitchers (so named for the Nash equilibrium of Game Theory, which describes a state in which any change in strategy from the current balance would result in less optimal results). Nash Scores work by comparing the runs a pitcher saves with each pitch in his arsenal to the average runs saved by all of his other pitches combined.

Pitchers with low (good) Nash Scores have achieved a close balance in effectiveness between their most-used pitches and the rest of their repertoire, which implies that any change in pitch mix would make them less effective overall. Meanwhile, pitchers who have high (bad) Nash Scores are either using ineffective pitches too much or not using their best pitches enough, suggesting that a reallocation might be needed.

Now is a good time to update Nash Scores for the current era of MLB pitchers.

Let’s highlight the top-15 qualified starters and relievers who have achieved the greatest balance according to their Nash Scores over the past three seasons (with recent years weighted more), as well as the 15 who might be leaving performance on the table.

But first, here is a chart showing all qualified MLB pitchers — using a three-year weighted pitch count — with their Nash Scores plotted against their Wins Above Replacement:

Explore the full, interactive chart.

Now, let’s get to the rankings, starting with the most balanced starters in our sample:


Irvin, Crochet among most optimized starters

Note: Listed rates for pitch types are usage share over the past three seasons and run values per 100 pitches for that pitch, relative to the average for the rest of their pitches combined.

The award for the league’s most balanced starter belongs to perhaps an unlikely name: Washington Nationals righty Jake Irvin. Irvin has been an average pitcher at best in his three MLB seasons, with an ERA of 107 (100 is average and lower is better) and a FIP (Fielding Independent Pitching) of 114, and he has never even had 2 WAR in a season yet. But in terms of maximizing his repertoire, the case can be made that no pitcher is getting more out of what he has to work with.

Over the past three seasons (again, with more weight on more recent data), Irvin has almost exclusively used three pitches: four-seam fastball, curve and sinker. Each was within 0.2 runs per 100 pitches of the average of his other offerings, meaning he found the mix where basically all of his pitches are equally effective — the whole point of this entire exercise.

Now, Irvin has drifted a bit away from equilibrium in 2025, using more of his curve (and less of his fastballs) despite them being more effective, so it’s worth keeping an eye on whether he continues to optimize his Nash Score. (Especially since his best-shaped pitch is actually his slider, which he almost never uses!)

Among the rest of the top 15, several other pitchers showed a knack for maximizing their stuff. Garrett Crochet — the nasty left-hander who broke out last year and was dealt from the Chicago White Sox to the Boston Red Sox — pairs an elite fastball with an even more dominant cutter (plus a bit of a sinker-slider), giving him one of the game’s best (and most equalized) pitch mixes.

Fellow Red Sox hurler Kutter Crawford follows the same template, with similarly effective four-seamers and cutters making the bulk of his repertoire. Others strike the balance differently: Jesus Luzardo and Freddy Peralta use more off-speed stuff, while Ryan Pepiot and Corbin Burnes rely on strong fastballs as their primary pitches — but only use them about half the time. And then there are guys such as Taj Bradley and Taijuan Walker, who lead with shaky main pitches, but throw them so infrequently that the rest of their pitches help equalize the overall mix.

It’s also no surprise to see Tarik Skubal, arguably the best pitcher in baseball, grace a list of hurlers who pick from their arsenals in the most efficient way. What everyone on the list has in common is a pitch selection largely in equilibrium, where effectiveness and usage are closely aligned.


Sewald, Poche among most optimized relievers

You’ll likely notice that the top relievers tend to be more optimized (with lower Nash Scores) than the top starters, which is probably an artifact of a few factors: First, relievers usually throw just a couple of pitch types, so it’s inherently easier to align usage with effectiveness when there’s less to balance. Second, those pitches are often thrown in short bursts at maximum intensity, which allows pitchers to rely more heavily on their strengths without diminishing returns. And finally, relievers don’t need to navigate a lineup multiple times, so they can lean on their best pitches more without the same concerns about stamina or predictability that starters face.

That said, some relievers do a better job of balancing than others. Though he has been nursing an injured shoulder since April, Cleveland’s Paul Sewald had been the best over the past few seasons — the two pitches he used 99.7% of the time, a four-seamer and a slider, were both within five hundredths of a run of each other in terms of effectiveness per 100 pitches. The batter knows one is likely coming… but they’re both equally tough to hit.

This was a very common theme among the top relievers, too: Each of the next four names on the list (Colin Poche, Tanner Scott, Joe Jimenez and Alexis Díaz), and eight of the top 11, used a version of that same pitch mix, with fastballs and sliders of near-equal effectiveness making up the vast majority of their pitches. Hey, if it works, it works.

But those who bucked the trend are also interesting. Philadelphia’s Orion Kerkering, for instance, flipped the tendency and relied mostly on a slider with the four-seamer as a change-of-pace pitch. Milwaukee’s Elvis Peguero was exactly 50-50 on sliders and sinkers (though both abandoned him earlier this season, and he has bounced between MLB and AAA), while Nats closer Kyle Finnegan introduces a splitter into the equation — and there’s longtime veteran closer Craig Kimbrel with his knuckle-curve (though it hurt his Nash Score).

Not all of these relievers have been lights-out, but many were, serving as great examples of how to stay effective even when hitters have a good guess at what’s coming.


Blanco, Kelly among least optimized starters

Now we get into some truly fascinating cases, where it’s important to remember that you can still be a great pitcher while still having a deeply strange, and seemingly suboptimal, mix of pitches.

There seem to be a few ways to land on this list: First, and most straightforwardly, you could have a far less effective No. 1 pitch than the rest of your arsenal, meaning you might stand to throw it less and the others more. Both of the top two above, Houston’s Ronel Blanco and Arizona’s Merrill Kelly, have primary four-seamers that are at least 1.5 runs worse per 100 pitches than their other options, and secondary off-speed pitches that are at least 2.4 runs better than the rest — classic cases where the Nash Score would suggest bringing them closer to balanced until the difference begins to flatten out.

Then there are cases such as Joe Ryan, Michael Wacha, Dylan Cease, Chris Sale and Michael King, in which their No. 1 option is clearly the best, but they throw other, much less effective pitches nearly as much, reducing the advantage of a dominant primary pitch. Spamming the top choice might lead to diminishing returns, but there’s room to give there before it starts being a suboptimal strategy.

And finally, we have the odd case of Paul Skenes — and Gavin Williams too, but Skenes is more fun to dissect — in which somehow the primary four-seamer is less effective than the other pitches, and so is the secondary breaking pitch, suggesting the need to dig deeper into the bag more often. But how can you argue that Skenes isn’t doing the most he can? He literally leads all pitchers in WAR. The thought he could optimize his stuff even more is terrifying.


Kahnle, Bender among least optimized relievers

Finally, we get to the less optimal end of the reliever spectrum. And as stable as the opposite side was, with a bunch of guys using their boring fastball-slider combos to carefully record outs, this one contains more varied pitch mixes. Well-represented, for instance, is the phenomenon I found with R.A. Dickey the first time around — that despite his knuckleball being both his best pitch and the one he used most often, the Nash Score implied he should throw it even more because it was much more effective than the rest of his offerings.

While we don’t have any knucklers in the bunch this time, we do have guys such as Detroit Tigers setup man Tommy Kahnle, whose lead pitch is a changeup (not a fastball) so effective that it’s nearly four runs per 100 pitches better than the rest of his repertoire. Pitchers who work backwards like this must mix in fastballs to keep hitters honest — but at the same time, the fastballs are much less valuable that using them slightly less might be good even if it makes the change less effective. (Anthony Bender, Brenan Hanifee, Steven Okert, David Robertson, Greg Weissert and Cade Smith were in this category as well, among others.)

Just as odd were the cases of Ryan Helsley, Justin Lawrence and John Brebbia, whose primary pitches were far less effective than their secondary options, despite each essentially having only two pitches to work with. The numbers might be asking for those hierarchies to be flipped around.

And finally, there are guys such as Kenley Jansen, who spam one solid pitch — but they don’t have much else to work with, so any deviation worsens performance, even if the Nash Score still dings them for imbalance.

In the end, no metric — not even one rooted in Game Theory — can capture the full complexity of pitching. But Nash Scores do give us a window into something that’s often hard to pin down: How much a pitcher gets out of what they’re working with, and whether they’re winning the rock-paper-scissors aspect of the batter-pitcher showdown.

Some get the most out of average stuff through smarter allocation. Others leave value on the table despite electric arsenals. In either case, the path to better performance might be as simple (or difficult) as throwing the right pitch at the right moment just a little more often.

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Fordow: What we know about Iran’s secretive ‘nuclear mountain’ – and how Israel might try to destroy it

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Fordow: What we know about Iran's secretive 'nuclear mountain' - and how Israel might try to destroy it

Deep beneath a mountain, hundreds of centrifuges spin, enriching Iran’s uranium that Israel suspects is destined for a nuclear weapon.

The Fordow plant is protected by tonnes upon tonnes of dirt and rock, far away from prying eyes – and foreign missiles.

But as Israeli warplanes fly unchecked above Tehran, with much of the Islamic Republic’s air defences turned to smoking ruins on the ground, attention has moved to the secretive facility.

Some say only the American B-2 stealth bomber and its massive payload could breach the so-called “nuclear mountain”, while others argue troops on the ground might be able to infiltrate its corridors. Or maybe it is simply impossible, short of a nuclear strike.

Iran has repeatedly denied that it is seeking a nuclear weapon and the head of the UN’s nuclear watchdog said in June that it has no proof of a “systematic effort to move into a nuclear weapon”.

A satellite image shows the Fordo nuclear facility in Iran in this handout image dated June 14, 2025. Maxar Technologies/Handout via REUTERS
Image:
A satellite image shows the Fordow nuclear facility. Pic: Maxar Technologies/Reuters

What is the Fordow facility?

The Fordow enrichment plant is one of three key pieces of nuclear infrastructure in Iran – the others being the Natanz enrichment plant and research facilities in Isfahan.

It is thought to be buried around 80m deep into the side of the mountain. It was previously protected by Iranian and Russian surface-to-air missile systems, but these may have wholly or partially knocked out during Israel’s recent attacks.

Construction is believed to have started in around 2006 and it first became operational in 2009 – the same year Tehran publicly acknowledged its existence.

Map showing the Fordow enrichment plant
Image:
Key sites at Fordow including tunnel entrances

In November 2020, it was believed there were 1,057 centrifuges at Fordow. These are used to separate isotopes and increase the concentration of uranium-235, needed for nuclear fuel and weapons.

In 2023, the International Atomic Energy Agency (IAEA) – the nuclear watchdog – found uranium particles enriched to 83.7% purity – near the 90% needed for a bomb – at Fordow, the only Iranian facility where this has been found.

In June 2024, the Washington Post reported on a major expansion at Fordow, with nearly 1,400 new centrifuges earmarked for the subterranean facility.

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Iran ambassador: ‘This is about self defence’

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Will Israel try to destroy Fordow?

Israel has made no secret of its desire to cripple or remove Iran’s nuclear programme, describing it as an existential threat.

There is much that remains elsewhere in Iran that is capable of producing and using nuclear material.

“But of course the real big piece remains at Fordow still and this has been in the headlines quite a bit,” says Dr Alexander Bollfrass, an expert on nuclear weapons from the International Institute for Strategic Studies (IISS) thinktank.

There is also the chance that an increased focus on diplomacy brings the war to an end before the IDF can make a run at Fordow.

FILE - This photo released Nov. 5, 2019, by the Atomic Energy Organization of Iran shows centrifuge machines in Natanz uranium enrichment facility near Natanz, Iran. A new underground facility at the Natanz enrichment site may put centrifuges beyond the range of a massive so-called ...bunker buster... bomb earlier developed by the U.S. military, according experts and satellite photos analyzed by The Associated Press in May 2023. (Atomic Energy Organization of Iran via AP, File)
Image:
Centrifuge machines at Natanz – similar to ones held at Fordow. Pic: AP

Could bunker buster bombs be used?

There has been a lot of talk about bunker buster bombs. These are munitions that explode twice – once to breach the ground surface and again once the bomb has burrowed down to a certain depth.

The Israelis used 60 to 80 of them in the strike that killed Hezbollah leader Hassan Nasrallah in September last year, according to Martin “Sammy” Sampson, a former air marshal and executive director at the IISS.

But Nasrallah was only 10-15m underground, Mr Sampson said, while Fordow is believed to be 80m beneath the surface.

“An awful lot of planes would be in the same place for an awful long time” to drop enough bombs to have a chance of getting to the buried facility, he added.

A GBU-57, or the Massive Ordnance Penetrator bomb, at Whiteman Air Base in Missouri. in 2023. File pic: US Air Force via AP
Image:
A GBU-57 bunker buster bomb seen in 2023. File pic: US Air Force/AP

There is also the possibility that the US, which operates the much more powerful GBU-57 bomb, could assist with any operation at Fordow.

“My sense is that it would still take multiple strikes,” Mr Sampson said, putting it in “more and more unknown territory”.

“It would be pretty disastrous… if you put 400 planes over the top of Fordow, or you put the might of the US over Fordow, and it survived.”

Israel’s ‘contingencies’ for dealing with Fordow

Israel has suggested that it could destroy or cripple Fordow without using bombs dropped from the air.

Speaking to Sky’s Yalda Hakim earlier this week, former Mossad director of intelligence Zohar Palti said it was “much easier for the Americans to do it”, possibly referring to the GBU-57.

“But as you see, we know how to run things alone,” he added. “And if we need to do some other stuff alone, we will do it.”

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Sky’s Yalda Hakim speaks to Zohar Palti

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Israel’s ambassador to the US, Yechiel Leiter, said last weekend that Israel has “a number of contingencies… which will enable us to deal with Fordow”.

“Not everything is a matter of, you know, taking to the skies and bombing from afar,” he told ABC News.

There has been talk of using special forces to raid the facility on the ground, but that has its downsides as well.

“This would be an incredibly high risk mission if you were to do something on the ground,” said Mr Sampson.

There is also the possibility Israel could replicate what happened at the Natanz enrichment plant, where the IAEA said 15,000 centrifuges were likely destroyed in the IDF bombardment of Iran.

This was possibly due to an Israeli airstrike disrupting the power supply to the centrifuges, rather than actual physical damage to the centrifuge hall, according to the nuclear watchdog.

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Environment

Tesla inks first deal to build China’s largest grid-scale battery power plant

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Tesla inks first deal to build China's largest grid-scale battery power plant

Tesla has inked its first deal to build a grid-scale battery power plant in China amid a strained trading relationship between Beijing and Washington.

The U.S. company posted on the Chinese social media service Weibo that the project would be the largest of its kind in China when completed.

Utility-scale battery energy storage systems help electricity grids keep supply and demand in balance. They are increasingly needed to bridge the supply-demand mismatch caused by intermittent energy sources such as solar and wind.

Chinese media outlet Yicai first reported that the deal, worth 4 billion yuan ($556 million), had been signed by Tesla, the local government of Shanghai and financing firm China Kangfu International Leasing, according to the Reuters news agency.

Tesla said its battery factory in Shanghai had produced more than 100 Megapacks — the battery designed for utility-scale deployment — in the first quarter of this year. One Megapack can provide up to 1 megawatt of power for four hours.

“The grid-side energy storage power station is a ‘smart regulator’ for urban electricity, which can flexibly adjust grid resources,” Tesla said on Weibo, according to a Google translation.

This would “effectively solve the pressure of urban power supply and ensure the safe, stable and efficient electricity demand of the city,” it added. “After completion, this project is expected to become the largest grid-side energy storage project in China.”

Inside Tesla's Megapack system, which stores energy for utilities

According to the company’s website, each Megapack retails for just under $1 million in the U.S. Pricing for China was unavailable.

The deal is significant for Tesla, as China’s CATL and carmaker BYD compete with similar products. The two Chinese companies have made significant inroads in battery development and manufacturing, with the former holding about 40% of the global market share.

CATL was also expected to supply battery cells and packs that are used in Tesla’s Megapacks, according to a Reuters news source.

Tesla’s deal with a Chinese local authority is also significant as it comes after U.S. President Donald Trump slapped tariffs on imports from China, straining the geopolitical relationship between the world’s two largest economies.

Tesla Chief Executive Elon Musk was also a close ally of President Trump during the initial stages of the trade war, further complicating the business outlook for U.S. automakers in China.

The demand for grid-scale battery installation, however, is significant in China. In May last year, Beijing set a new target to add nearly 5 gigawatts of battery-powered electricity supply by the end of 2025, bringing the total capacity to 40 gigawatts.

Tesla has also been exporting its Megapacks to Europe and Asia from its Shanghai plant to meet global demand.

Capacity for global battery energy storage systems rose 42 gigawatts in 2023, nearly doubling the total increase in capacity observed in the previous year, according to the International Energy Agency.

— CNBC’s Arjun Kharpal contributed reporting.

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