As the team at MIT Technology Review set out to choose companies for this year’s edition of our annual list of Climate Tech Companies to Watch, the challenge felt more daunting than any year since we started compiling the list in 2023. 

This year is shaping up to be one of the hottest ever recorded. The world must begin to reduce greenhouse-gas emissions to address the climate crisis, which is already affecting communities around the globe. Wildfires, floods, and other climate-fueled disasters are killing thousands and costing billions of dollars. At the same time, political shifts and international conflict have stalled progress, particularly in the US. 

Technology alone can’t solve climate change. But we believe innovations can help us make real changes and improve lives around the world as we try to address one of the most pressing challenges of our time. 

In this project, we look for companies developing technologies that can help us face the climate crisis. Some are driving down the greenhouse-gas emissions fueling climate change; others are working to reduce the dangers that communities face from extreme heat, drought, or other shifts brought on by a warming planet. We focus on companies that have established a track record, whether through research findings, capital raised, or deployments. 

When we set out to build our list, we start by soliciting nominations from our team of reporters and editors. We ask experts for suggestions and reach out to academics, researchers, investors, and analysts. Once we have a pool of nominees, we then consider each one, digging through literature, reports, and patents to vet both the technology and the business. 

We judge each company not only on its own merits, but also on how it might fit into our list overall. We want the final slate of companies to represent a range of industries and include firms based around the globe that are at different stages of development. We also aim to strike a balance between highlighting companies previously included and introducing new names. Finally, we consider some of the most important trends and events of the year and look for nominees that reflect those developments.

The dismembering of US federal regulations and cuts to financial government incentives for innovation means that the country is no longer a leader in climate tech. Like last year, the 2026 list is largely composed of companies that are based outside the US. China is an obvious hotspot for technological innovation across energy and climate. This year’s list includes two Chinese companies: WeLion is building semi-solid-state batteries for electric vehicles, and Envision Energy is installing huge amounts of wind power and energy storage in China and around the world. 

Several sectors stood out this year as being of particular importance. One of the biggest stories of the year is the rising demand for electricity, driven in part by AI data centers. 

Energy storage is a key piece of that puzzle because it can smooth out variations in the electricity supply as grids incorporate more renewable power. We’ve included several energy storage companies on this year’s list. Energy Dome is building long-duration energy storage systems on the grid that rely on compressed carbon dioxide. Moment Energy is a Canadian company working to repurpose EV batteries for grid-scale storage. And Form Energy, which we also included in the 2024 edition of this list, is producing iron-based batteries that can store energy for multiple days. 

A wide range of technologies is represented here: everything from mobile flood barriers to next-generation nuclear reactors. Some of the awardees might be familiar from our past coverage; others are just emerging and may be less well known. 

We believe we’ve put together a list filled with businesses that are rising to the challenge of this moment. Political will has weakened even as the damages wrought by climate change continue to mount. By helping us make progress on tackling the climate crisis in such difficult times, these companies point to a better way forward.

WeLion New Energy is on a quest to make safer, better batteries. The company’s semi-solid-state cells could improve safety and offer greater energy density than lithium-ion batteries to power electric cars, boats, and drones.

From the EVs that carry commuters home to the ships that transport goods across countries, more and more vehicles around us are powered by batteries. 

Lithium-ion batteries are commonly used to power personal devices and vehicles today. But as the need for batteries surges, there’s a growing appetite for cells that can store more energy on a single charge.

Also, in lithium-based batteries the electrolyte, which facilitates ion transfer, uses a flammable liquid that can create a fire hazard. 

Several companies, including WeLion New Energy, are working to make solid-state cells, which use a solid electrolyte instead of a liquid one. This could increase the energy density of batteries, as well as improve their safety. Fully solid-state cells are extremely difficult to manufacture, though. So WeLion currently focuses on developing and producing semi-solid-state cells, which have a part-liquid, part-solid electrolyte. 

On that front, they have made steady progress. In 2023, WeLion released a battery pack in partnership with Shanghai-based EV-maker Nio, best known for its battery-swapping technology. The pack had an energy density of 360 watt-hours per kilogram (wh/kg), significantly higher than the 200 wh/kg average for lithium-ion packs today. That translated to a range of over 1,000 kilometers (621 miles). However, only about 200 of the battery packs were manufactured due to their high production cost, but they are still being used by Nio, WeLion says. 

WeLion has also built batteries to power cargo ships and ferries through a subsidiary. And the company is developing batteries with even higher energy density too. WeLion’s engineers made a semi-solid-state battery that achieved a remarkable energy density of 824 wh/kg during testing in 2025, more than three times that of a standard lithium-ion battery available today. 

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Key indicators

• Industry: Energy storage
• Founded: 2016
• Headquarters: Beijing, China
• Notable fact: WeLion’s cofounders include Chen Liquan, a scientist at the Chinese Academy of Sciences who led the development of the country’s first all-solid-state battery back in 1988.

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Potential for impact

China emits more carbon dioxide than any other country, and its transportation sector accounts for around 10% of that total. Scaling up the production of safer, higher-capacity batteries could help switch more vehicles away from fossil fuels. 

Batteries that power electric ships could be especially helpful—the carbon dioxide emissions from vessels that move goods along China’s lakes, canals, and rivers are projected to grow by around 25% in this decade alone, reaching 18.7 million metric tons by 2030. 

Caveats 

One big challenge WeLion faces is scaling up production of its semi-solid-state batteries and competing on cost in a crowded battery market. WeLion says that its semi-solid-state batteries are more expensive than conventional lithium-ion batteries made by larger Chinese battery companies such as CATL. 

And while laboratory tests showing high energy density are impressive, it can be difficult to translate laboratory results to the real world. The company declined to give more details about the experimental results from its 2025 prototype, which it says is far from commercialization. Key details remain unclear, including how many times the cell can be charged and discharged and how capacity degrades over its lifetime.  

Next steps 

WeLion plans to bring a new semi-solid-state battery for drones to market with an energy density of 410 wh/kg by the end of this year. It also intends to introduce its first all-solid-state battery for cars in 2027, which is expected to have an energy density of 400 wh/kg. 

Two inland cargo ships powered by WeLion’s batteries are expected to launch in October 2026 in Huzhou, a city in eastern China. The battery pack of each of these ships will be able to carry nearly 4,000 kilowatt-hours of electricity, enough for them to sail for up to 250 kilometers (155 miles), the company says.

Today, WeLion has an annual manufacturing capacity of 11 gigawatt-hours (GWh) spread between four production bases in China. Two additional plants with a combined yearly capacity of 18 GWh are under construction.

Form Energy is building iron-based batteries that can store energy for multiple days. The company is ramping up supply at its factory and signing deals for commercial projects.

New solar and wind installations produce electricity more affordably than fossil fuels in most places, but their output varies based on season, time of day, and weather. To compensate, utilities are increasingly investing in battery storage systems, which can charge when power is abundant and discharge when the grid needs a boost. 

Lithium-ion batteries are the fastest-growing storage technology. Although light and energy-dense, they require pricey metals and are costly to scale, and few of the large batteries of this type used in industry are designed to store energy for longer than four to six hours.

Form Energy wants to build cheaper long-duration energy storage technology. The company has developed a new type of battery, built with a far more abundant and cheaper metal, iron, that can store energy for 100 hours. It uses a process that Form calls “reversible rusting.” During discharge, oxygen from the air converts the iron metal to rust, releasing electrons. When charging, current converts the rust back into iron metal. 

Over the past two years, Form has gained commercial traction. It began producing batteries at its West Virginia factory for its first commercial deployment, a 150 megawatt-hour system for Minnesota electricity provider Great River Energy, which is set to come online in 2027. And Form has signed several other deals with power providers. The largest is a project with another Minnesota-based utility, Xcel Energy, where wind and solar power, backed by 30 gigawatt-hours of Form’s batteries, will be used to power a new Google data center. That project is expected to come online in phases between 2028 and 2031.

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Key indicators

• Industry: Energy storage
• Founded: 2017
• Headquarters: Somerville, Massachusetts, US
• Notable fact: Once complete, Form’s proposed 30 gigawatt-hour energy storage system at a Google data center in Minnesota could be the world’s largest battery project by energy capacity.

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Potential for impact

Wind and solar power play a major role in limiting growth in global carbon dioxide emissions. Still, many grid operators depend on fossil fuel plants, especially natural gas ones, to fill gaps caused by periods of low renewable supply or high demand. Form’s batteries are designed to cover multiday supply-demand imbalances, like those that crop up during heat waves, deep freezes, or periods with little sun or wind. The company declined to share the current cost of its battery systems, but says its goal is to reach $20 per kilowatt-hour, which would make them cost-competitive with the natural gas alternative.

The company’s technology could help reduce emissions from the AI data center boom. AI’s thirst for energy has already delayed closure of aging coal plants, led to the building of new natural gas plants, and caused price hikes for consumers. Cheap energy storage could help renewables meet more of this AI-driven growth in electricity demand. 

Caveats

The long-duration storage market is still nascent. Form’s iron-air technology faces a crowded field of approaches, including pumped hydropower, compressed gas, fuel cells, gravitational devices, and flow batteries that store energy in liquids. The economics of multiday batteries, which require large capital expenditures yet frequently sit idle, remain tricky.  

While funding from data center developers could be a major boost, Form also has to prove it can deliver: Its existing production capacity, 2 gigawatt-hours of battery storage per year, is a fraction of the 80 gigawatt-hours it has promised through commercial agreements. Success will hinge on its ability to scale.

Another remaining question is the technology’s physical footprint. Form’s batteries, which are stacked together in enclosures the size of shipping containers, require an acre for every two to three megawatts. That means its Google installation would take up the equivalent of at least 75 football fields. 

Next steps

In addition to finalizing its first commercial project, Form is outfitting its factory with new equipment that will help it scale manufacturing to meet its production backlog. It will do so with the help of new financing, announced in August, that brings its total money raised, in addition to West Virginia state and US federal grants, to more than $2 billion.

X-energy is developing small modular reactors to satisfy some of the planet’s most power-hungry users: industrial manufacturers that need high temperatures to produce billions of tons of concrete, plastics, fibers, and chemicals.

Solar panels and wind turbines are great at producing electricity but what heavy industry also needs is raw heat—and lots of it. The manufacture of concrete, glass, and steel, as well as the production of many chemicals, plastics, and fertilizers, are still highly reliant on fossil fuels to produce that heat. 

Traditional nuclear reactors simply don’t get hot enough. The cooling systems they use require liquid water to work, and even applying pressure to raise the water’s boiling point leaves their maximum operating temperatures hundreds of degrees cooler than needed. 

X-energy’s proposed Xe-100 reactor will use helium gas as a coolant instead, allowing it to operate at much lower pressures and higher temperatures. The helium will heat water and create super-heated steam, which industry can use either directly or to generate 80 megawatts (MW) of electricity via a turbine, or a combination of the two. That’s about one-tenth of the capacity of most reactors operating today.

In common with other small modular reactors (SMRs), the Xe-100 will use a modern uranium-based fuel called TRISO (short for tristructural-isotropic) that is extremely resistant to corrosion and melting. Compact TRISO “pebbles” will be added continuously to the top of the reactor, then flow slowly to the bottom, where they will either be recycled or removed as waste. The company says the reactor will be intrinsically safe in the event of a loss of power—if temperatures inside rise, the nuclear reaction naturally slows and stops.

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Key indicators

• Industry: Nuclear fission
• Founded: 2009
• Headquarters: Rockville, Maryland, US
• Notable fact: The first helium-cooled reactor was proposed for the World War II Manhattan Project but was passed over in favor of a simpler and cheaper water-cooled design.

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Potential for impact

Industrial heating currently accounts for 18 percent of annual global greenhouse-gas emissions, with about half of that coming from high-temperature processes that are difficult to electrify. Co-locating small nuclear reactors at large manufacturing facilities could shrink some of the biggest carbon footprints in the world. 

The Xe-100 reactor could also be used by the fossil fuel industry, which today uses vast quantities of natural gas to generate the heat needed to recover oil from tar sands, and during oil refining. 

The flexibility of the Xe-100 means that it can be used for traditional electricity generation. By scaling down in size and power from today’s gigawatt-scale fission plants, small reactors like the Xe-100 can serve more markets—even down to individual data centers. AI and data centers now represent the single largest component of new demand for electricity in the US, and their consumption is expected to double again by 2030. X-energy says that up to 12 of its reactors could be clustered together to provide 24/7 power on site, at a lower cost than a traditional nuclear power station and without the hassle of adding transmission infrastructure.

Caveats 

The technology behind helium-cooled fission may be well understood, but the only commercial-scale power generation of this type today is in China, where two reactors have struggled to operate on a continuous basis. X-energy says that its vertically integrated fuel supply should ensure reliable operation, with reactors having a lifetime of 60 years. 

The economic case for SMRs is also largely unproven. Nuclear costs and timelines have a habit of ballooning, and the US Energy Information Administration calculates that electricity from SMRs will cost more than six times that from solar farms. While the current environment in the US for regulation and government funding favors nuclear, that could change over X-energy’s long development time frame. 

TRISO reactors appear excellent for safety and nonproliferation (the tough spheres would be difficult to turn into weapons) but are less impressive when it comes to waste. The Xe-100 might produce 10 times the volume of spent nuclear fuel per unit of energy as existing reactors, although its lower-level waste will need less sophisticated storage.

Next steps 

The US Nuclear Regulatory Commission has issued X-energy’s subsidiary with a fuel fabrication license for TRISO-X pebbles, with its first factory due for completion in 2028. An Xe-100 to supply heat and power for a large chemical facility in Texas operated by Dow has also cleared its first regulatory hurdle, and could be operational by the early 2030s.

In tandem, X-energy is working toward a 320 MW cluster of four Xe-100 reactors in Richland, Washington, in collaboration with Amazon, and a larger 6 GW fleet in the UK’s northeast. Both projects target electricity generation in the 2030s.

There’s a growing need for long-duration storage to meet energy demand and balance out renewables on the grid. Energy Dome uses compressed carbon dioxide gas in its massive grid batteries, which can deliver power for up to 24 hours. 

As the world races to meet growing electricity demand, solar and onshore wind power have become the cheapest and quickest-to-deploy sources to install on the grid. But, despite their upsides, both are subject to variations in weather patterns, which means supplies can be intermittent. Energy Dome is using stored carbon dioxide to help smooth out gaps between supply and demand.

The key component of an Energy Dome plant is a huge white dome that covers an area about the size of seven soccer fields and holds about 2,000 metric tons of carbon dioxide. When energy is available—say, from a connected solar farm—compressors squeeze the gas, turning it into a liquid that’s then stored in carbon-steel tanks. That process generates heat, which the system holds in a proprietary thermal storage material. Then, when the grid needs power, the carbon dioxide is released from the tanks and warmed with the stored heat, turning it back into a gas. That gaseous carbon dioxide then passes through a turbine to generate electricity and flows back into the dome, ready to begin the cycle again.

Compressing gas to store energy isn’t new—utilities have been using compressed air in underground caverns to hang on to reserves for decades. But Energy Dome’s approach doesn’t require any specific geology to work, so it could be more easily scaled to help grids around the world.

Energy Dome turned on its first commercial plant in Sardinia, Italy, in 2025. The facility has a capacity of 200 megawatt-hours. That’s enough to power about 18,000 Italian homes for 10 hours.

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Key indicators

• Industry: Energy storage
• Founded: 2020
• Headquarters: Milan, Italy
• Notable fact: Energy Dome has plans for 30 gigawatt-hours’ worth of projects across five continents.

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Potential for impact

Cheaper energy storage could help wind and solar meet more of the world’s electricity demand.

Today, lithium-ion batteries dominate new installations for short-duration applications of up to four hours. But the economics aren’t competitive for longer durations: A lithium-ion system that provides eight hours of storage at the same power output requires doubling the number of cells. 

Energy Dome estimates that its technology is roughly 10% to 15% cheaper than lithium-ion batteries for an eight-hour system, and that the economics are even better for longer-duration systems of up to 24 hours. The company says its ability to scale bigger and faster than lithium-ion boils down to the fact that its design uses existing commercially available equipment like compressors and storage tanks. Its plants that are either operational or under contract have eight or 10 hours of capacity.

Caveats 

Energy Dome only has one commercial project that’s operational. It’ll need to build many more to provide the 30 gigawatt-hours of storage it has planned.

The technology also isn’t quite as efficient as lithium-ion. Overall, Energy Dome’s process can return about 70% of the electricity it stores to the grid (a measure known as roundtrip efficiency). Lithium-ion batteries average roughly 90%. But some other long-duration storage techniques clock in lower; some iron-air batteries, for example, are around 50%.

Energy Dome’s plants may not all be benign from a planet-warming perspective. The company offers a version of its system that pairs its carbon dioxide battery with natural gas turbines. That version replaces internal heat storage with waste heat from the gas turbines to help evaporate carbon dioxide. That helps the plant run more efficiently but ultimately results in greenhouse-gas emissions from the natural gas turbines.

Next steps 

Energy Dome has a pipeline of about 30 gigawatt-hours’ worth of plants in the works around the world, and many of these projects could come online by the end of the decade. Because the company uses off-the-shelf components, the time from a signed contract to delivered capacity is only two years. In June 2026, for example, it signed a deal with Google to build a 200 MWh plant in Ireland, which is expected to come online in 2028.

Brimstone is making strides on two industrial problems, reducing the emissions from cement and providing a way to produce more critical minerals within the US. If the company can do both, with the same rocks in the same plant, it would unlock a cleaner and more efficient process for manufacturing building materials, aluminum, steel, and more.

Brimstone is a code-switching climate tech company for these polarized political times. The US-based startup—part green cement company, part critical mineral producer—is well positioned to sustain its momentum no matter which party is in power.

During the more climate-focused Biden administration, the company’s primary pitch was its ability to produce cement while generating about 60% less greenhouse-gas emissions. It achieves this by switching to silicate rocks instead of standard limestone, which releases carbon dioxide when it’s heated. The conventional process for creating cement, the binding used to produce concrete, contributes about 8% of the world’s carbon dioxide pollution.

Under the protectionist and climate-denying Trump administration, however, the company is now stressing the secondary benefits of its process: the ability to extract other valuable materials from those same silicate rocks. 

The company has said for years that its process could also generate materials that can be used to strengthen cement. But in early 2025, Brimstone highlighted that it would be able to also produce smelter-grade alumina, the raw material used in aluminum.

It then revealed it had another trick up its sleeve late last year: the ability to make steel, magnesium, titanium, and other critical minerals from the same rock in a single refinery. 

The company’s CEO, Cody Finke, said those materials represent a $2.4 trillion global market. Brimstone’s approach promises to provide a domestic path for goods mostly produced today in China, the subject of Trump’s harshest trade policies and rhetoric. 

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Key indicators

• Industry: Heavy industry 
• Founded: 2019 
• Headquarters: Oakland, California, US
• Notable fact: In 2023, the company earned third-party industry certification for its process for manufacturing Portland cement, allowing its product to qualify for standard manufacturing projects.

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Potential for impact

The company made a very big deal of its newfound ability to produce all these other goods, arguing its process would bolster national security and usher in the “next generation of industrial refining.” The basic environmental promise is that generating all these materials from the same rock and a single mining process would require dramatically less energy and produce far less waste than manufacturing them separately.

“I think that we have one of the generational companies that’s actually able to create an industrial revolution,” Finke says.

To which we would say: Well, we’ll see.

Caveats

Brimstone has yet to produce anything at a commercial scale, and it faces numerous financial and technical challenges. Some observers are dubious that the company will be able to economically extract sufficient quantities of so many materials from a single type of rock—or overcome the cost and labor issues that make mining and refining minerals a tough business in the US.

Brimstone also suffered a major stumble last year, when the Trump administration revoked a $189 million grant intended to subsidize its next plant, a planned commercial demonstration project in Reno, Nevada. 

Finke says the company continues to have fruitful conversations with the administration about restoring those funds, in which Brimstone has emphasized its potential to boost domestic production of critical minerals. He has previously said the company will be able to proceed with the development of the plant, even without that grant or other subsidies.

Next steps

The company expects to begin operating the Reno facility, which will only produce cement, supplementary materials, and alumina, in 2028. That means Brimstone will still need to finance and build its first full-scale factory to deliver the steel, titanium, and other critical materials, likely pushing the timeline for doing so into the next decade.

Based on its progress so far, though, the company has already lined up several commercial deals. That includes agreements to supply cement to retail giant Amazon and alumina to Century Aluminum, one of the US’s largest producers of its namesake metal.

Even if Brimstone doesn’t bring about another industrial revolution, the company is equipped to slash emissions from cement, which is reason enough to pay close attention. 

If Brimstone also manages to dramatically reduce the energy, pollution, and costs associated with extracting and refining rock to produce all—or any—of those other goods, that would represent a big corporate and climate win as well.

As sea levels rise and flood risks worsen due to global warming, WaveSave’s easy-to-erect portable dam offers a quick-response tool. People can use the dam to protect themselves and their property, and it can also store freshwater for later use. Communities in Europe, Africa, and Southeast Asia have deployed it successfully. Now, the company is expanding into other water-related services to help vulnerable places become more resilient.

One in five people globally are at high risk of being exposed to serious floods. Many live in communities without proper protection and can’t afford to evacuate during a flood or relocate permanently. Climate change-driven extreme weather and sea-level rise is only exacerbating the problem.  

WaveSave makes a portable rubber dam called SlamDam that customers can quickly install in the early hours of a flood. Anyone can unfurl it on the ground along a riverbank or shoreline and pump it full of water until it swells into place. And there it stands, up to 1.3 meters high, shielding nearby property or structures from damage as waters rise. 

Developed in 2013 in the Netherlands, SlamDam was initially tested and is still used today by regional water authorities in that country. WaveSave has since expanded into Africa and Southeast Asia, and customers have now deployed SlamDam in at least a dozen countries. 

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Key indicators

• Industry: Flood barriers
• Year the company was founded: 2017
• City and country of headquarters: Eindhoven, the Netherlands
• Notable fact: WaveSave is demoing its SlamDam product on New York City’s Governors Island as one of seven winners in a competition for urban climate adaptations. The barrier is installed at a site where high tides and waves from passing ferries often wash ashore.

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Potential for impact

Due to both climate change and population growth, nearly 2 billion people will be exposed to floods by 2100—an increase of 300 million from 2020, according to one estimate. 

A SlamDam is designed to help protect farmland and personal property as well as critical facilities like hospitals or water treatment plants. It’s cheaper in the short term than more permanent modifications like building levees or rebuilding facilities on higher ground. And its temporary nature means it can be deployed as needed, and then stored away.

To fill the SlamDam, a local installer can use any portable water pump they may have on hand. With a lifespan of more than 40 years, the flood barriers can be used again and again. 

This low-tech solution has another important benefit, at least when it comes to freshwater floods: In the weeks and months after a flood, residents can tap the water stored inside the mobile dam to irrigate crops. This is particularly helpful during the dry season or in drought-prone regions. At the rural Mpanda commune in Burundi in East Africa, where a SlamDam was deployed during the 2022 flood season, farmers with access to the water inside produced more crops that year and doubled their incomes, according to a UN report. 

Caveats

Companies like AquaFence, MegaSecur, and NOAQ Flood Protection also make mobile flood barriers. WaveSave distinguishes itself in part by focusing on rapid emergency deployment in developing countries, and by emphasizing SlamDam’s ability to store water for later use.

But one research team that analyzed SlamDam’s use in Kenya found a series of challenges to getting communities there to adopt the technology. One was figuring out who should own and deploy the dam.

Another ongoing challenge is the up-front cost. SlamDam is already on par with or more affordable than many alternatives: It costs between €1,000 and €3,000 (about $1,140 and $3,400) per five-meter section, and comes in a range of heights. Protecting a single entrance to a home or facility might require only 10 meters, while surrounding a facility (such as a hospital) or shielding a farm or neighborhood might take 200 to 300 meters. But the price is still too high for many communities or farmers. WaveSave’s managing director Omar Saleh says the company is looking into offering SlamDam as a service and deploying it on demand to make protection more affordable. 

Next steps

Right now, an external partner manufactures all SlamDams in the Netherlands; they are then shipped to customers based elsewhere. But WaveSave aims to open a local production facility for SlamDams in Southeast Asia in early 2027, followed by a similar facility in East Africa, which could help lower costs. The company recently won contracts for four new projects totaling about $5.3 million in Burundi, Djibouti, and Guinea, with a “substantial pipeline” developing in Southeast Asia and Latin America, according to Saleh.

The company is currently self-financed and only has seven employees. Saleh says he plans to grow organically by investing profits back into the firm. 

Part of that growth will involve offering new services such as advising communities on how to install and operate simple, off-the-shelf rainwater harvesting and irrigation systems, as part of a more comprehensive approach to managing water in climate-stressed regions.

BasiGo aims to replace the tens of thousands of diesel-powered buses on sub-Saharan African roads with electric ones that generate far fewer emissions. The company’s pay-as-you-drive business model has helped make EVs more attainable and is changing the way public transport operates.

In a bid to contain the covid-19 pandemic in 2020, the Kenyan government temporarily suspended public transportation. The suspension lasted only three days, yet the change in air quality was dramatic. The air was so clear that Mt. Kenya—Africa’s second-highest peak—was visible in Nairobi, roughly 175 kilometers away. Some could even spot Mt. Kilimanjaro, the continent’s highest mountain, even farther in the distance.

This reprieve from smog sparked the idea for BasiGo’s electric bus business. The company’s founders glimpsed what could happen to the air if diesel buses and trucks were cleaned up. Since then, they’ve built a fleet of more than 100 electric buses to lease to customers who are operating them in Kenya and Rwanda. These buses have ferried 15 million passengers since BasiGo’s founding.

The company doesn’t manufacture its own buses—the vehicles come from China and are assembled in Kenya. BasiGo’s innovation lies in offering a full range of services that make its electric buses more competitive with internal combustion engine (ICE) buses, says Jit Bhattacharya, co-founder and CEO. Instead of simply selling its buses to operators, as other bus companies do, BasiGo leases them out, offers maintenance services and insurance, and provides a charging network for its customers. Those customers are primarily individual operators or bus cooperatives, of which there are more than 300 in Kenya.

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Key indicators

• Industry: Electric vehicles
• Founded: 2021
• Headquarters: Nairobi, Kenya
• Notable fact: BasiGo is the first authorized service provider in sub-Saharan Africa for CATL, the world’s largest EV battery company. Its own buses use CATL batteries and BasiGo’s employees are trained to repair the batteries on other vehicles.

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Potential for impact

The initial price of electric buses is very high compared to combustion-engine models. Electric vehicle expenses are lower over the long term, though, because of the savings from fuel. BasiGo’s model aims to remove the barrier of high up-front cost for private bus operators in Africa looking to add an electric bus to their fleet.

Under this approach, the operator pays a small deposit, which Bhattacharya says is 40% less than the down payment they would make on a diesel bus. The operator then pays a daily pay-as-you-drive lease fee. Bhattacharya estimates the operator earns a 5–10 times higher return on investment over the life of a BasiGo bus compared to a diesel bus.

When it comes to emissions, Bhattacharya and his team calculate that replacing one diesel bus with an electric one in Kenya results in 50 tons of avoided carbon dioxide emissions every year. With about 20,000 buses currently operating in Nairobi alone, transportation emissions could be dramatically reduced if every bus was electric.

Since its buses run on domestically generated renewable energy (90% of Kenya’s energy mix is renewable), operating them will keep more money in the local economy compared with fuel, which has to be imported. And switching to EVs also has potential health benefits, such as a decrease in childhood asthma cases, due to less particulate matter in the atmosphere.

Caveats

BasiGo buys many of the parts for its buses from Chinese firms including King Long and BYD. But the buses have to be locally assembled in Kenya. So the company must spend a lot of time and resources training personnel to build, repair, and maintain the buses in every location in which it operates—which could be a challenge for any future expansion.

The company also faces high up-front costs for infrastructure upgrades required to support new high-power loads such as EV chargers. And Bhattacharya says securing land for charging depots is “expensive and complicated” since charging requires land located directly on bus routes and next to power lines.

Next steps

At the moment, more than 150 BasiGo buses are on the road, and the company has a reservation list of 1,200 customers who wish to lease vehicles as more become available.

Having already expanded from commuter buses to providing inter-city coach services, BasiGo is now targeting the next big polluters on the roads: trucks. The company has not yet announced any details about its plans, but says to stay tuned.

Demand for energy storage is surging, with capacity expected to grow eightfold in the next decade. To meet that demand, Moment Energy wants to shortcut a supply chain that now flows largely through China, by domestically repurposing EV batteries into new grid-connected storage systems.

Moment Energy’s four founders met while studying mechatronics engineering in college and worked together on a team that built and raced electric cars. After graduating, they scattered to companies including Tesla and Apple, but aimed to someday work together again.

Then, after two tornadoes tore through parts of Ottawa in 2018, taking hospitals and cell towers offline—and putting the now-CEO through his first full-scale power outage—the foursome sensed an opportunity. The team began disassembling Nissan Leaf batteries in a garage in British Columbia and repackaging them to deliver backup systems to homes and businesses. The battery business was growing quickly: in 2019, just as Moment Energy launched, battery storage capacity was expected to balloon 40 times by 2040.

Today, their vision looks prescient. Disasters including hurricanes and wildfires continue to spur blackouts, and booming data center demand has expanded the market for energy storage even further. Moment now works with tech companies looking for ways to manage their power supply as well as customers preparing for potential outages.

Ongoing trade battles between the US and China have been a shot in the arm for the company. Nearly all battery manufacturing is rooted in China and batteries imported to the United States face steep tariffs (though the future of some of those duties remains uncertain). Meanwhile, Moment will soon be able to categorize its repurposed batteries as domestic products in both Canada and the US, where it’s building its next plant. The company also claims to be the only “second life” battery company to receive important certifications from independent safety evaluator UL, which financiers and insurers use to evaluate whether a battery system is a secure investment.

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Key indicators

• Industry: Battery repurposing
• Founded: 2019
• Headquarters: Vancouver, Canada
• Notable fact: The company’s bylaws contain a promise that it will never send a battery to a landfill.

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Potential for impact

Last year, the world deployed 1.2 terawatt-hours of electric vehicle battery capacity, according to the International Energy Agency. And while EVs account for the great majority of battery use worldwide, battery storage is now the fastest-growing power technology.

Producing all of those batteries, though, is resource-intensive: The minerals must be mined and processed, manufactured into a final product, and then shipped (often from China) to ports around the world. What’s more—when an EV reaches the end of its useful life, as much as 80% of the car’s battery capacity remains.

Recycling is an expensive process, and the great majority of battery recycling capacity is in China. So battery materials from North America must be shipped back across the ocean to be stripped of useful minerals and metals. (Though the Trump administration in August said it would ban this practice, in a bid to stem the stream of critical materials headed for recycling in China.) 

Repurposing can bridge initial use and recycling. After Moment receives a used battery pack, the company screens each cell for health and safety, plugging metrics into proprietary AI models that quantify its remaining life, and recycles any cells that are not up to snuff. The rest are linked together and repackaged in 20- or 40-foot-long steel containers. Moment’s systems are designed to extend a battery’s useful life for another 10–30 years. Global warming potential, resource use, and impacts to human health are all reduced when repurposing a battery before recycling it, according to a 2023 analysis.

More than one million EV batteries worldwide could reach the end of their lives by 2030. Moment says that its model could reroute more than two gigawatt-hours of batteries from landfills or recycling facilities every year.

Caveats

Today, Moment represents a tiny slice of the overall energy-storage market. The company has deployed 11 systems since its founding, initially for off-grid homes and more recently for grid-connected hospitals, airports, and other commercial and industrial facilities that need additional power supply or want to avoid costly system upgrades for new power sinks like EV chargers. 

How significantly the company can scale will depend, in large part, on the stream of EV batteries it can obtain and how quickly it can test and repackage them. Today, the company sources used batteries from around 20 car companies, including Nissan and Mercedes-Benz.

Moment must also compete against cheap, new batteries flowing in from China. The company says its systems now cost under $90 per kilowatt-hour. Average costs for energy-storage batteries reached $70 per kilowatt-hour in early 2026. Even when accounting for tariffs and shipping costs, some new batteries may still undercut repurposed models.

Next steps

In June, the company cut the ribbon on its Megafactory 1 in Vancouver. Slated to repurpose one gigawatt-hour of battery capacity per year by 2030, it is the world’s largest facility for repurposing EV batteries. It took just six weeks to bring the facility online. 

Using funds from the US Department of Energy and part of the $100 million the company has raised thus far from investors including Amazon and Liberty Mutual, Moment is now finishing an even bigger facility in Texas. Even together, though, the two hubs will be able to process only a fraction of the batteries retiring from North American roads. To realize its full climate potential, the startup will need to sustain its early momentum and scale up dramatically.

Earlier this month, the UN announced the planet will tip past 1.5 ˚C of warming, “likely within the next few years,” squashing any lingering hope that nations would cut emissions fast enough to achieve the loftiest goal of the Paris climate agreement.

In the US, the world’s second-largest-emitting country, its leader continues to deny climate realities and unravel climate policies. Big Tech is backpedaling on its climate ambitions, as companies race to build massive AI data centers.

And all this comes amid yet another season of shattered heat records, raging wildfires, and deadly floods.

It can be tempting to give in to climate doom and defeatism. But despite the headwinds, the world has still made incredible progress. Companies are developing and deploying renewables, batteries, and EVs; inventing cleaner means of producing industrial goods; and devising ways to keep cities and people safe even in the face of more extreme weather conditions.

Those advances will only accelerate as costs decline and people demand greater climate action, as well as all the economic and health benefits that come with it.

Recognizing our ability to make such progress is why MIT Technology Review began publishing our annual list of Climate Tech Companies to Watch three years ago.

Once a year the editors and writers use their deep industry knowledge and academic sources to compile a long list of companies around the world that are transforming the way we generate energy, produce goods, move people and things, or mitigate rising climate dangers.

We then conduct several rounds of spirited newsroom debate to winnow that list down to 10 that we believe have done the most, or have the best chance, to make a real dent in emissions or improve public safety and health.

We’re happy to say we’ve finalized that list for 2026, and will publish it on October 6. You can sign up for The Download newsletter to be among the first to see it, or subscribe to receive full access to this year’s list. It features a mix of companies making strides in energy storage, nuclear power, transportation, and other areas, including ones that have figured out how to continue to make progress amid the regressive climate politics of the moment.

We hope you’ll enjoy the package and perhaps come away feeling a bit more hopeful that we can move fast enough to avoid the gravest dangers of climate change, and build a safer, healthier, and more sustainable world.