Tesla Investors Reject Moratorium on Deep-Sea Mining

Tesla investors have rejected a moratorium on sourcing metals for electric vehicle batteries from deep sea ecosystems, showing a divergence in the auto industry's approach to environmental responsibility.

In December, the non-profit organization As You Sow encouraged Tesla to support a ban on deepwater mining, in line with the Business Statement in Support of a Deepwater Mining Moratorium. However, 78% of Tesla shareholders opposed the proposal, demonstrating that “their priority is business operations and strategic decisions, rather than environmental issues,” stated  As You Sow.

Tesla's rejection vote contrasts with that of other automakers such as Volvo, Volkswagen and BMW, which have signed a moratorium on deep sea mining in collaboration with the World Wildlife Fund. Experts suggest that this divergence illustrates the different approaches to environmental sustainability within the automotive industry. Danielle Fugere, President, As You Sow, points out that compared to other countries, the United States’ auto industry lags on environmental issues, with both Tesla and General Motors having rejected the moratorium. 

Deepsea Mining in the World

Currently, the International Seabed Authority (ISA) has approved 31 contracts, 30 of which are active, each lasting 15 years. Among these contracts, several involve governmental entities such as the governments of India, Poland, and South Korea, as listed on the ISA website. However, most contracts are with private companies that have directly engaged with ISA for deep-sea mining activities.

China leads with five of these ISA contracts, followed by Russia and South Korea with three each. Japan, India, Germany, Poland, France, and the United Kingdom have two contracts each. Brazil, Jamaica, Kiribati, Cook Islands, Singapore, Tonga, and Nauru each have one contract.

While Mexico has not yet started deep-sea mining, it has a substantial opportunity to do so. With access to both the Atlantic and Pacific Oceans and its proximity to the Clipperton Fracture Zone, a rich area for mining, Mexico's mineral reserves are estimated to contain 21 billion t of polymetallic nodules. These are believed to hold about 6 billion t of manganese, 226Mt of copper, 94t of cobalt, and 270Mt of nickel.