A growing number of sizable companies, from mining giants to energy majors, are embracing the hype for natural hydrogen.
It comes as buzz continues to build over the potential for a resource that advocates say could radically reshape the global energy landscape.
Natural hydrogen, sometimes known as white, gold or geologic hydrogen, refers to hydrogen gas that is found in its natural form beneath Earth’s surface. The long-overlooked resource, first discovered by accident in Mali nearly 40 years ago, contains no carbon and produces only water when burned.
Investor interest in the nascent natural hydrogen sector has been intensifying in recent months, fueling optimism initially driven by research startups and junior exploration companies.
Over the past year or so, some of the sector’s established backers include mining giants Rio Tinto and Fortescue, Russia’s state-owned energy giant Gazprom, the venture capital arm of British oil giant BP and Bill Gates‘ clean tech investment fund Breakthrough Energy Ventures.
We can use it to make metals, make fuels, you could even make food, and all with far fewer emissions than conventional approaches.
Eric Toone
Chief technology officer at Breakthrough Energy
Exploratory efforts are currently underway in several countries across the globe, with Canada and the U.S. leading the way in terms of project counts over the last year, according to research published by consultancy Rystad Energy.
Analysts expect the year ahead to be a pivotal one, with industry players hoping their exploration campaigns can soon locate the elusive gas.
Not everyone’s convinced about the clean energy potential of natural hydrogen, however, with critics flagging environmental concerns and distribution challenges. For its part, the International Energy Agency has warned there is a possibility that the resource “is too scattered to be captured in a way that is economically viable.”
A global scramble for ‘white gold’
Minh Khoi Le, head of hydrogen research at Rystad Energy, said it’s difficult to predict whether natural hydrogen can live up to its promise in 2025.
“I guess last year was the year that things got really interesting for the natural hydrogen space because that’s when many companies started to plan drilling campaigns, extraction testing and we started to see some major players start to get involved as well,” Le told CNBC by video call.
“Since then, I would say the progress has been relatively slow. There are only a few companies that have actually started drilling,” he added.
Gauges that are part of the electrolysis plant of the geological hydrogen H2 storage facility.
Alex Halada | Afp | Getty Images
Rystad’s Le, who characterized the global pursuit of natural hydrogen as a “white gold rush” last year, said that while there’d been no major progress over the last 12 months, an upswing in investor interest could help to deliver some meaningful results.
“Now, we are starting to see companies getting investment, so they have money to fund their drilling campaigns. So, if we are to get an answer of whether this thing will work, we’ll get to that conclusion a bit faster this year,” Le said.
Hydrogen has long been billed as one of many potential energy sources that could play a key role in the energy transition, but most of it is produced using fossil fuels such as coal and natural gas, a process that generates significant greenhouse gas emissions.
Green hydrogen, a process that involves splitting water into hydrogen and oxygen using renewable electricity, is one exception to the hydrogen color rainbow. However, its development has been held back by soaring costs and a challenging economic environment.
Clean, homegrown energy
Australia’s HyTerra announced an investment of $21.9 million from Fortescue in August last year, noting that the proceeds would be used to fully fund expanded exploration projects.
A spokesperson for Fortescue, one of the leading green hydrogen developers, said its push into the natural hydrogen sector was in line with its “strategic commitment to exploring zero emissions fuels.”
Acknowledging that more work is required to fully assess natural hydrogen’s emissions profile, Fortescue’s spokesperson described the technology as a “promising opportunity” to accelerate industrial decarbonization.
A hydrogen-powered haul truck, right, at the Fortescue Metals Group Ltd. Christmas Creek mine in the Pilbara region of Western Australia, Australia, on Tuesday, Oct. 17, 2023.
Bloomberg | Bloomberg | Getty Images
Elsewhere, BP Ventures, the venture capital arm of BP, led a Series A funding round of U.K.-based natural hydrogen exploration startup Snowfox Discovery earlier this year, while France-based start-up Mantle8 recently received 3.4 million euros ($3.9 million) in seed funding from investors, including Breakthrough Energy Ventures, a climate and technology fund founded by Bill Gates in 2015.
Eric Toone, chief technology officer at Breakthrough Energy, said the fund had backed the likes of Mantle8 and U.S.-based startup Koloma because the promise of natural hydrogen is such that it “could unlock a new era of clean, homegrown energy.”
“Hydrogen is pure reactive chemical energy. If we have enough hydrogen and it’s cheap enough, we can do almost anything. We can use it to make metals, make fuels, you could even make food, and all with far fewer emissions than conventional approaches,” Toone told CNBC via email.
“We know it’s out there and not just in isolated pockets. Early exploration has identified natural hydrogen across six continents. The challenge now is figuring out how to extract it efficiently, move it safely, and build the systems to put it to work,” he added.
In search of the ‘eureka moment’
Aurian Durbuis, chief of staff at France’s Mantle8, said momentum certainly appears to be building from a venture capital perspective.
“There is a growing interest, indeed, especially given the dynamics with green hydrogen right now, unfortunately. People are turning their eyes to other solutions, which is in our favor,” Durbuis told CNBC by video call.
Taking the evolution of US shale-gas as an analogy, even if large finds are made, it will likely take decades to achieve industrial production.
Arnout Everts
Member of the Hydrogen Science Coalition
Based in Grenoble, in the foothills of the French Alps, Mantle8 is targeting the discovery of 10 million tons of natural hydrogen by 2030 to complement the European Union’s goals.
“The question is can we find producible reservoirs, in the oil and gas terminology. That’s really what we need to figure out as an industry,” Durbuis said.
“We think we can drill in 2028 and hopefully that is the eureka moment because if we can find something at that time, then it could obviously be a game changer. If we find highly concentrated hydrogen, with pressure, then this just changes everything,” he added.
What’s next for natural hydrogen?
The Hydrogen Science Coalition, a group of academics, scientists and engineers seeking to bring an evidence-based view to hydrogen’s role in the energy transition, said exploration for natural hydrogen is still at an “embryonic stage” — but even so, the likelihood of locating large finds of nearly pure hydrogen that can be extracted at scale look “relatively slim.”
The world’s only producing hydrogen well in Mali, for example, supplies “just a fraction of the daily energy output of a single wind turbine,” Arnout Everts, a geoscientist and member of the Hydrogen Science Coalition, told CNBC via email.
The team from the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) took samples of natural hydrogen gas found in One Pute Jaya Village, Morowali Regency, Central Sulawesi Province, Indonesia, 23 October 2023.
Nurphoto | Nurphoto | Getty Images
“Taking the evolution of US shale-gas as an analogy, even if large finds are made, it will likely take decades to achieve industrial production,” Everts said.
Ultimately, the Hydrogen Science Coalition said the pursuit of natural hydrogen risks distracting focus from the renewable hydrogen needed to decarbonize industries today.
After launching a wave of new electric SUVs, sedans, crossovers, and vans, Kia is about to hit a big milestone. Kia’s EV series is expected to cross over 500,000 in cumulative global sales this month.
After Hyundai hit the half-million mark with its IONIQ series in January, it looks like Kia is right behind it. It’s been five years since Kia launched its first dedicated EV, the EV6, but the growth is expected to quickly pick up from here.
Kia set a new record, selling over 1.5 million vehicles globally in the first half of 2025. The Korean automaker credited the growth to the arrival of new models, including the EV3.
The EV3, Kia’s compact electric SUV, is already the sixth-best-selling EV in Europe through June, having arrived late last year. With over 35,000 units sold, the EV3 trails only the Tesla Model Y and Model 3, as well as Volkswagen’s ID.4, ID.7, and ID.3.
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According to local reports, Kia is expected to cross 500,000 in cumulative global EV sales this month. With 485,055 EVs sold so far, the company is about to join the half-million club.
Kia EV6 (right), EV3 (middle), and EV9 (right) Source: Kia
Kia’s EV sales are expected to top 500,000 this month
Kia’s EV sales have been climbing in recent years from 29,482 in 2021, to 83,411 in 2022, 131,242 in 2023, and 124,835 last year. This year, Kia has already sold over 116,000 EVs, but with new models rolling out, it could see even higher numbers.
The EV6 is Kia’s top-selling EV with 282,639 cumulative sales, followed by the EV3 (101,162), EV9 (79,312), and EV5 (18,621).
Kia unveils EV4 sedan and hatchback, PV5 electric van, and EV2 Concept at 2025 Kia EV Day (Source: Kia)
Kia launched several new EVs, including the EV4, EV5, and PV5, that are expected to drive even more demand over the next few months. The EV4 is Kia’s first electric sedan. In Europe, it’s also sold as an electric hatchback.
Meanwhile, the PV5 is the first from Kia’s new PBV electric van business. During its PV5 Tech Day event this week, Kia revealed plans for seven new body types based on the electric van, from camper to pickup.
Kia PV5 tech day (Source: Kia)
Kia has already opened orders for the EV4 (sedan and hatchback) and PV5 in the UK. They will be rolling out in Europe later this year. Although the hatch isn’t expected to make the trip overseas, Kia is launching the EV4 sedan in the US in early 2026.
Following the EV4 and EV5 this year, Kia will introduce the EV2 in Europe and other global markets in 2026. The EV2 is Kia’s new compact, entry-level electric SUV.
Solid-state battery developer QuantumScape has posted its quarterly fiscal report and letter to shareholders for Q2 2025. QuantumScape’s progress update includes an expanded agreement with Volkswagen Group’s battery business, PowerCo, and a new joint development agreement with an additional OEM.
As far as quarterly updates go, I personally look forward to the letter to shareholders from QuantumScape ($QS) four times a year. The solid-state battery developer continues to improve its technology and production techniques, pushing closer than ever to delivering mass-produced energy-dense cells to market.
Last month, QuantumScape reported that its proprietary Cobra solid-state separator process had been fully integrated into its baseline production processes, achieving a 2025 goal while enabling gigawatt-level solid-state cell production.
QS said the Cobra breakthrough is expected to lay the groundwork for higher-volume B1 sample production of its flagship QSE-5 cells, which will eventually lead to scaled production for the battery market.
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Furthermore, the technology supports QuantumScape’s licensing model with PowerCo, a division of Volkswagen Group, which was announced a little over a year ago. As part of its Q2 2025 report, QuantumScape shared details of an expanded deal with PowerCo among several other exciting updates.
(clockwise from bottom left) Siva Sivaram, QS CEO; Dr. Günther Mendl, Head of Center of Excellence Battery, Volkswagen AG; Sebastian Schebera, Head of Strategic
Partnerships, Volkswagen AG; Dennis Segers, QS Board Chairman; Jupp Kaufer, VP of Product Management and Corporate Quality, PowerCo / Source: QuantumScape
QuantumScape ended Q2 2025 with runway through 2029
All details outlined below are available in QuantumScape’s Q2 2025 Letter to Shareholders. Per the company, its capital expenditures were $8.3 million in Q2, primarily spend on facilities and equipment purchases to prepare for higher-volume QSE-5 B1 sample production using the Cobra separator process mentioned above.
GAAP operating expenses and GAAP net loss in Q2 were $123.6 million and $114.7 million, respectively. Adjusted EBITDA loss was $63 million in Q2 (in line with expectations). Per the letter:
We continue to streamline operations consistent with the company’s capital-light licensing focus and capture gains from cost reduction initiatives and process improvement, including the Cobra process. We narrow the range of our full-year guidance for Adjusted EBITDA loss to $250M – $270M. We ended Q2 with $797.5M in liquidity and extend our guidance for cash runway into 2029, a six month improvement over our previous guidance. Any additional funds from other customer inflows or capital markets activity would further extend this cash runway.
As hinted above, QuantumScape’s Q2 2025 update also included news of an expanded deal with PowerCo, which entails the latter company contributing an additional $131 million to the former over the next two years. That amount will come in addition to the original $130 million committed by Volkswagen Group’s battery arm if and when QS delivers “satisfactory technical progress and execution of the full licensing agreement.”
In exchange for the additional funding, QuantumScape will prioritize QSE-5 cells manufactured on its San Jose pilot line to support its joint development agreement with PowerCo. That said, QS still maintains a non-exclusive arrangement and has the right to provide cells to our other customers.
Speaking of which!
QuantumScape’s Q2 2025 report also includes news of an additional joint development agreement (JDA) with “another major global automotive OEM.” Although QS did not name the OEM, it did say the JDA builds off an existing relationship, as the client was a solid-state sample customer. Unfortunately, QS keeps that client list close to its chest, so we’d rather not speculate on who the new joint development partner could be, but it’s exciting news nonetheless.
Looking ahead beyond Q2, QuantumScape is set on its second goal for 2025 – installing higher-volume cell production equipment to support scaled solid-state cell production. From there, QS is looking to ship more samples of its prototype cells and has shared a more concrete timeline for actual field testing. Per the letter:
We are working closely with our launch customer, and in Q2 we shipped QSE-5 cells for pack integration and testing, including safety testing. These cells were the final Raptor-based B0 samples to be shipped; future shipments will be Cobra-based B1 samples, in line with our third annual goal. This launch program is designed to be a low-volume, high-visibility project that will allow us to put our cells into a real-world vehicle application and generate customer feedback. We continue to target 2026 for the beginning of field testing.
That’s all for now. Be sure to check back with Electrek soon for the latest solid-state battery and other electric mobility news.
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The “holy grail” of electric vehicle battery tech may be here sooner than you’d think. Mercedes-Benz is testing EVs with solid-state batteries on the road, promising to deliver over 600 miles of range. Here’s when you can expect to see it hit the market.
Mercedes moves to launch EVs with solid-state batteries
Earlier this year, Mercedes marked a massive milestone, putting “the first car powered by a lithium-metal solid-state battery on the road” for testing. Mercedes has been testing prototypes in the UK since February.
The company used a modified EQS prototype, equipped with the new batteries and other parts. The battery pack was developed by Mercedes-Benz and its Formula 1 supplier unit, Mercedes AMG High-Performance Powertrains (HPP)
Mercedes is teaming up with US-based Factorial Energy to bring the new battery tech to market. In September, Factorial and Mercedes revealed the all-solid-state Solstice battery.
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The new batteries, promising a 25% range improvement, will power the German automaker’s next-generation electric vehicles.
According to Markus Schäfer, the automaker’s head of development, the first Mercedes EVs powered by solid-state batteries could be here by 2030.
Mercedes EQS modified with a solid-state battery (Source: Mercedes-Benz)
During an event in Copenhagen, Schäfer told German auto news outlet Automobilwoche, “We expect to bring the technology into series production before the end of the year.”
In addition to providing a longer driving range, Mercedes believes the new batteries can significantly reduce costs. Schäfer said current batteries won’t suffice, adding, “At the core, a new chemistry is needed.” Mercedes and Factorial are using a sulfide-based solid electrolyte, said to be safer and more efficient.
Mercedes claims the new battery can extend driving range by around 25%. With the Mercedes EQS 450+ rated with a WTLP range of 511 miles, that would suggest over 620 miles of range.
Mercedes-Benz starts road testing first solid-state battery vehicle (Source: Mercedes-Benz)
Factorial is collaborating with other leading OEMs, including Hyundai and Stellantis, to introduce solid-state EV batteries to the market by 2030.
Several others, including Volkswagen, BMW, Toyota, Nissan, and Honda, are all advancing the promising new batteries. And don’t forget BYD and CATL, which are already dominating global sales, are also quickly advancing new EV batteries, including solid-state.
Earlier this week, MG’s brand manager, Chen Cui, claimed that the new MG4 will be the first mass-market EV sold globally with semi-solid-state batteries.
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