You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Americans want a variety ... of crossovers.

America’s electric car market has a new champion. The automaking alliance of Hyundai Motor Group and Kia Motors is now the second biggest seller of electric cars in the United States, according to new data released last week by Bloomberg BNEF.
The two companies sold more than 117,000 electric vehicles in the United States last year, or about 8% of all new EVs nationwide, according to the research firm. Only Tesla, the industry’s longtime leader, sold more electric cars: It still commands about half of U.S. market share.
The two companies’ success is an encouraging sign in what was more broadly a weird year for the EV market. Scarcely more than a year ago, the public’s demand for electric cars overwhelmed available inventory, and dealers were selling every EV they could get their hands on.
But as gas prices have fallen, the growth in EV sales in the United States has slowed, and the market has gotten more uneven. Tesla, looking to shore up its market position, launched a price war last year that juiced sales but cut deep into its profits. Ford and General Motors, meanwhile, are suffering anemic sales and cutting back on their short-term EV plans.
Amid this patchy landscape, Hyundai and Kia’s growth stands out. While the two companies are technically independent, Hyundai owns about a third of Kia Motors, and they collaborate on vehicle design, engineering, and manufacturing. They also use the same vehicle “platforms,” a common set of parts that can be used across models.
Since the news came out last week, I’ve seen climate people on Twitter and elsewhere try to explain why it’s happening. Many of these explanations conform to the views that the urban, progressive climate commentariat already hold about the car market. Look, Hyundai and Kia are winning because they’re making smaller cars, not behemoth SUVs.
But the answer, while not quite the opposite, doesn’t line up with what many might wish. In fact, Hyundai and Kia are dominating the EV market right now by churning out a mostly unbroken stream of crossover and SUVs. All but one of their electric cars qualifies as an SUV or crossover; all of their plug-in hybrids are SUVs. It is this commitment to repetition — to giving the consumer a lot of choices on a central theme — that sets their product lines apart right now.
You can see the importance of this by looking at their models in more depth. Take the Hyundai Ioniq 5 and the Kia EV6, for instance, which have led EV sales at the two brands and which are built on the same platform. Each is an electrified take on the type of car that, for years now, Americans haven’t been able to get enough of: the compact crossover SUV. The Ioniq 5 and EV6 each have two rows of seating and 25 cubic feet of trunk space. They drive more or less like a car, sit high on the road like an SUV, and fall in the broad category of cars that — as a friend’s wife puts it — looks like a fist with its thumb stuck out.
The Ioniq 5 and EV6 are also really, really similar to the Mustang Mach E, Ford’s attempt at an electric crossover. In fact, if you look only at specs, they’re basically the same car. All three have the same length and width and take up about 95 square feet of road space. All three have five seats. All three have roughly the same size trunk, although the Ford’s is maybe slightly bigger. And all three have an entry-level model starting at about $42,000 — although the lowest trim Ford has slightly more range and horsepower, and costs about a grand more.
As you might expect from those specs, the Mach E narrowly outsold the Ioniq 5 and EV6 in the United States last year. Ford sold more than 40,000 Mach Es in 2023, while Hyundai moved nearly 34,000 Ioniq 5s and Kia sold 19,000 EV6s. But here’s the thing: The Mach E did not outsell the Ioniq 5 and EV6 combined. And unlike Ford, which only sells one electric SUV, Hyundai and Kia continued to flood the zone with SUV options for consumers.
How many options? Hyundai sold plug-in versions of its Tuscon and Santa Fe SUVs. Kia sold an electric version of its subcompact Niro SUV and a plug-in hybrid version of its Sportage SUV. And even though Kia only started selling its new three-row SUV, the EV9, in December, it had already delivered more than 1,000 of them by the end of the year.
In fact, only one electric car from Hyundai-Kia — the new Ioniq 6 — was designed like a traditional sedan. But it made up only around 8% of the alliance’s total sales. Hyundai and Kia achieved their commanding position by giving Americans what they want: a seemingly endless stream of SUVs and crossovers.
Now, it matters here that Kia and Hyundai are two different companies, so there is some automatic duplication in their product lines. It might never make sense for Ford or GM to sell cars as similar as the EV6 and Ioniq 5. But if we’re being honest, their SUV lineups are already pretty duplicative: Do most consumers understand the difference between a Ford Edge and a Ford Escape? There’s no reason Ford couldn’t add an Escape EV to its lineup — something a little smaller and a little cheaper. That’s exactly what Kia does with the EV Niro, after all.
It helps, too, that lots of Kia and Hyundai’s cars look like great deals for consumers. Many of their key offerings hover in the high $30,000s to mid $40,000s, seemingly the sweet spot for new family cars today. Even though Hyundai and Kia’s cars don’t qualify for the new EV tax credit, Americans can use the $7,500 federal tax credit if they lease a vehicle instead.
Hyundai especially has used this credit — and a creative mix of rebates and low-interest-rate offers — to bring down the monthly payment for consumers. (Nearly half of new Ioniq 5s are leased, according to BNEF, which is a much higher rate than normal for Hyundai’s cars.)
Finally, it helps that Kia and especially Hyundai are making more interesting-looking vehicles than any other automaker right now. Compared to the staid peoplemover that is, say, the Volkswagen ID.4, the Ioniq 5 is striking, novel, and seems to push EV design forward. Its pixelated taillights are unlike anything else on the road, and it’s an extremely charismatic vehicle to drive; it’s just a better product, overall, than other cars out there.
And that might be the most important lesson behind Hyundai and Kia’s success. For the past few decades, decarbonization advocates have gotten used to thinking about electric cars primarily as a market abstraction: Are they cheap? Are they available? Are they growing as a sector? But as the EV transition continues, we are going to have to think about them more as products, as specific tools that can improve someone’s life by their presence. The EV companies that ultimately win will make better products than their competitors — cars that bring together capability, design, and price in a special way. Right now, Hyundai and Kia are pushing to the front of that race.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
A natural gas well in Kansas is not the same as an offshore wind farm in Maine.
It happened again. The Trump administration has struck a deal with an offshore wind developer to cancel another round of projects. My colleague Emily Pontecorvo has the full story: The Chicago-based company Invenergy has accepted $765 million to give up four offshore wind leases off the coast of New York, California, and Maine.
These deals might be legally suspect — Democratic state attorneys general sued to block them a few weeks ago — but the administration says more are coming. “The Department of Justice looks forward to continued cooperation from companies that are reevaluating their energy investments,” the official press release about today’s deal intones. I have to applaud the federal lawyer who chose the phrase “continued cooperation” here; it is suitably menacing while implying that developers who give in to the racket are somehow complicit.
If you read Heatmap, you knew a deal like this might be coming. As Emily writes, she predicted that Trump would target Invenergy for a deal back in April. Eyes now turn to the German developer RWE, which is sitting on two more leases and hasn’t yet taken a bargain.
Most observers have seen these deals as a front in the president’s war on wind power. And, of course, they are. But they should also be viewed as part of Trump’s peculiar attack on the economy of coastal states.
Get Heatmap in your inbox daily.
By Heatmap’s tally, the Trump administration has now terminated the leases for more than 14 gigawatts of planned offshore wind capacity, or roughly enough to power at least 6 million to 7 million homes. More than half of those gigawatts were initially planned to go to New York and New Jersey’s strained power markets (and on from there to New England and the Mid-Atlantic).
Another 3.4 gigawatts were planned for Maine’s power grid. Maine already suffers from some of the highest power bills in the country, according to Heatmap and MIT’s Electricity Price Hub; its rates have risen more than 10% in the past year.
California was slated to get another 4 gigawatts, and the Carolinas were due the last remaining gigawatt.
What’s funny — or perhaps fishy, given the maritime setting — is that administration officials seem to realize that they shouldn’t be taking so much electricity generation off the map. Today’s Invenergy deal includes a new quasi-quid pro quo arrangement: In exchange for giving up its offshore wind leases, Invenergy agreed to develop natural gas or geothermal power plants in Indiana, Wisconsin, Iowa, Kansas, and Missouri. (Previous deals countenanced only fossil fuel development, so I suppose this counts as a “win.”)
But of course, as Hilary Bright, who leads the pro-wind group Turn Forward, argued this afternoon, that doesn’t work. “These buyouts are not one-for-one ‘swaps’ for another kind of energy,” she said in a statement. These wind farms were meant to bring new generation capacity online in some of the country’s most stressed power markets. It doesn’t work to cancel them, then build new power plants in the middle of the country. New York is particularly power-constrained at the moment and faces a risk of summertime blackouts as soon as the end of this decade. Invenergy’s wind leases in the tristate area — or, as FIFA would call it, New York/New Jersey — were closer to operation than any of its other projects.
If and when blackouts arrive in Gotham, will New Yorkers look back and remember this moment? Or — somewhat more importantly to Trump — will voters in Maine and North Carolina, both of which have elections this November that will help determine the balance of the Senate. Whatever happens, we’ll be watching it here at Heatmap.
The deal with developer Invenergy includes a commitment to build geothermal generation in addition to natural gas.
In the third deal of its kind, Trump’s Interior Department has agreed to pay the energy developer Invenergy $765 million to cancel its four offshore wind leases, an amount equal to what Invenergy originally paid the federal government for them.
Like the preceding deals, the administration structured the refund as a legal settlement with Invenergy. That means the government will pay the company out of the Judgment Fund, a reserve of taxpayer dollars overseen by the Department of Justice and the Treasury Department that’s set aside to settle litigation that’s either ongoing or imminent.
The Invenergy agreement follows a similar $928 million arrangement with TotalEnergies announced in March, and an $885 million agreement with several joint ventures in April. That brings the total amount the Trump administration has agreed to pay to cancel offshore wind leases to more than $2.5 billion to date. The agency has not yet posted the settlement publicly, but the previous agreements were predicated on hypothetical lawsuits that the offshore wind developers would have filed if the Trump administration had paused activity on their leases, which it threatened to do based on national security concerns.
The key difference in the Invenergy agreement is in the quid pro quo. The other settlements specified that the companies would only be eligible for payment after investing an equal amount into U.S. oil and gas projects. In exchange for walking away from its offshore wind leases, Invenergy promised not only to develop natural gas-fired power plants, but also geothermal power generation projects — which are emissions-free.
Invenergy is a diversified power developer that builds solar, storage, wind, and natural gas generation. The company currently has more than 30 gigawatts of solar in its development pipeline and 10 gigawatts of natural gas. It has not yet built a geothermal power plant, but it has leased 139,000 acres of federal land to explore geothermal development. It’s also a member of the Mountain West Geothermal Consortium, a group of states, investors, and companies working together to scale the technology.
Invenergy holds one offshore wind lease off the coast of New York and New Jersey that it purchased in 2022 for $645 million, where it was developing its Leading Light project before work stalled last November. It also has a lease off the coast of California that it acquired for $112 million, also in 2022, and two in the Gulf of Maine, for which it paid about $9 million in 2024.
In a blog post published Wednesday, Invenergy said the deal with the Trump administration would “bring more megawatts to the grid and advance projects that can move forward today,” implying that the projects the company will build instead of offshore wind will come online faster.
The problem with Trump’s quid pro quos across all of these deals is that there’s no guarantee the companies wouldn’t have invested the same amount of money into the same projects regardless of whether they were reimbursed for their offshore wind leases. In the case of Total, the settlement is explicit that projects the company had already committed to invest in prior to the deal qualify.
After the administration announced the second round of offshore wind lease buyouts in April, making it clear the strategy was not a one-off settlement with Total but a new strategy to squash the industry, I named Invenergy as one of two developers that could be next. The other one that seems positioned to reach a similar deal is RWE, a German energy company with plans to develop 15 natural gas plants in the U.S. RWE paid $1.1 billion in 2022 to purchase a lease off the coast of New York and New Jersey for a project called Community Offshore — the most any company has paid to date for U.S. offshore wind development rights. It also bought a lease in the Pacific for $121 million, and another in the Gulf of Mexico for about $4 million.
In a press release, the Interior Department signaled its intention to broker more such agreements. “The Department of Justice looks forward to continued cooperation from companies that are reevaluating their energy investments,” it said.
Legal experts I’ve spoken with are skeptical that any of these settlement agreements comply with federal law. The government’s leasing statutes generally do not allow companies to walk away from their agreement and receive a refund.
Earlier this month, a group of seven attorneys general from Northeast states challenged Trump’s deal with TotalEnergies in court. They alleged that there was no actual disagreement between the parties that would legitimize use of the Judgement Fund. They also argued that under the Outer Continental Shelf Lands Act, the statute governing offshore wind, the Interior Department was required to hold a hearing to investigate whether continued activity on the lease would cause serious harm to the environment or national security before cancelling it.
The Trump administration has lost every lawsuit thrown its way so far challenging its actions on offshore wind. Last week, it quietly gave up its own appeal of a federal court’s December decision vacating Trump’s Day One Executive Order to halt wind energy approvals. The Invenergy deal suggests that this was less a sign of surrender in Trump’s wind war than part of a pivot to other strategies.
Editor’s note: This story has been updated to include the press release from the Department of the Interior.
That may be not be the case for long, though, as the AI company poaches energy talent from Google, Meta, the DOE, and others.
To the extent that any $965 billion artificial intelligence company built on pirated model training material can be “good-coded,” Anthropic has somehow managed to earn that reputation, at least relative to its peers. It’s somewhat surprising, then, that the company has been silent on climate change.
Until today. Sort of.
Frontier Climate, a corporate initiative to drive advances in carbon removal, announced a $915 million advance market commitment growth fund on Wednesday, naming Anthropic as one of the participating buyers.
Frontier supports projects that are capable of sucking large amounts of carbon out of the atmosphere, a solution scientists say is a critical supplement to reducing emissions in order to curb climate change. With the new fund, Frontier is shifting its focus from supporting early innovation to taking bigger swings on fewer, larger projects. Anthropic, alongside Google, Stripe, Shopify, and others, has committed to co-sign offtake agreements to buy the resulting carbon removal.
The news throws into relief Anthropic’s nearly complete absence from the clean energy development picture. The company’s primary contribution to climate change is its energy consumption, which is driving up coal and natural gas-fired power generation. According to data shared with Heatmap by the market intelligence company Cleanview, the average carbon intensity of Anthropic’s data centers is among the highest of its competitors, second only to xAI. Yet unlike many of peers, the company has not announced a single clean power purchase agreement to date.
Anthropic’s reputation as the ethical AI company traces back to its origin story, which begins with a guy leaving OpenAI to build a company more committed to AI safety. That guy, Anthropic CEO Dario Amodei, speaks and writes openly about the risks to humanity posed by powerful AI. Anthropic has also donated millions to support the development of AI regulations and prohibited the use of its models for mass surveillance or autonomous weapons, putting it at odds with the Trump administration. The company has focused on text-based products, in part to avoid the risk of users creating child sexual abuse material.
To date, however, the company has not publicized any sustainability strategy, nor has it published an annual sustainability report. It has not made any public commitments to use clean energy or reduce emissions. It is not a member of the Corporate Energy Buyers Association, a trade group representing companies that buy emissions-free energy. The only mention of any of the above themes in the company’s “Transparency Hub” is a note that many of its customers use Claude, Anthropic’s AI model, to “increase public health, education, environmental sustainability, and societal benefits.”
To be fair, it’s not that Anthropic has never discussed clean power. In a July 2025 report titled “Building AI in America,” the company made recommendations for ensuring the U.S. can support a competitive AI industry. It advocated for an “all of the above” approach to power generation to meet AI demand in the near term, which would “maximize opportunities for AI to catalyze emerging energy technologies, such as next-generation geothermal and advanced nuclear” down the line. It endorsed permitting reform to speed up transmission development and called for increased domestic production of electrical grid equipment.
In a section on the use of federal lands, the report also made a subtle dig at the Trump administration’s discriminatory policies against wind and solar. It noted that “solar, batteries, and geothermal may prove the most economically efficient choices before advanced nuclear power comes online,” and that “limiting developers’ opportunities to procure some power sources but not others” could make American AI “less competitive in a period of global competition.”
From one perspective, it makes sense that Anthropic hasn’t gone out of its way to procure clean power. To date, the company has mostly leased data center capacity from other providers that do have clean power commitments, including Amazon and Google. That will soon be the case no longer, however, as it is planning to both build its own data centers and rent capacity from xAI’s Colossus data centers, which rely heavily on power from on-site natural gas turbines. Colossus is currently the subject of a lawsuit filed by the NAACP over its air pollution.
Anthropic also doesn’t need to own and operate its own data centers to assume responsibility on climate change. Jane Flegal, a senior fellow at the think tank the Searchlight Institute, argued in a recent paper that companies should forget trying to minimize their individual carbon footprints and just make the most high-leverage investments they can, whether that’s helping to finance a geothermal power plant or a transmission line or a new transformer for the grid.
Anthropic did not respond to my inquiry for this story, but there’s some evidence to suggest that the company may be starting to take on climate and clean energy beyond the Frontier deal.
In March and April, Anthropic made three new hires to lead its energy strategy who all have a background in clean power. Ariel Horowitz is the company’s new data center energy lead. She previously spent five years at the Massachusetts Clean Energy Center before becoming the deputy director of grid modernization at the federal Department of Energy during the Biden administration. Sana Ouiji, who spent six years at Google working on data center clean energy strategy, is one of Anthropic’s new energy leads. Another new energy lead, Andrew Rudersdorf, came from roles sourcing energy for Meta’s data centers, including renewables.
The company is also currently hiring for a director of infrastructure and energy accounting, and looking for someone with “experience accounting for energy contracts — Power Purchase Agreements, Virtual PPAs, Renewable Energy Credits, or similar commodity arrangements,” according to the job listing.
Anthropic also appears to be preparing for mandatory emissions reporting rules that large companies will soon be subject to in California and the European Union. In April, the company hired Chris Power, who previously worked in sustainability reporting for Amazon and Salesforce, as its new head of non-financial reporting and strategy, according to LinkedIn. In a post announcing his new job, Power said part of his role would be building out the company’s sustainability reporting capabilities.
While funding carbon removal through Frontier is a major step forward for Anthropic on climate, the company is sure to face criticism over its order of operations. Scientists largely agree that carbon removal is an important solution for down the line, but only if the world also dramatically reduces the amount of carbon it emits in the first place — not least because doing so is less expensive and less resource-intensive than removing emissions in the future.
My colleague Robinson Meyer had Hannah Bebbington Valori, the head of Frontier, on his podcast Shift Key this morning, and asked her whether Anthropic is an example of the common concern that the potential to remove carbon from the atmosphere in the future could be used to delay cutting emissions today.
Bebbington Valori didn’t comment on Anthropic specifically. But she did say that most of the companies buying carbon removal with Frontier and otherwise do have broader climate programs. She also noted that buying carbon removal from Frontier is not a “get out jail free card,” since it costs hundreds of dollars per carbon credit, and that in general the world is spending a lot more money on decarbonization than carbon removal.
“And then, you know, the other way to answer this question,” she added, “is we should hold folks’ feet to the fire on this. People who buy carbon removal, people who don’t buy carbon removal, should be thinking about decarbonizing their emissions.”