In a recent shareholder meeting, Tesla faced a critical decision on deep sea mining that could have far-reaching implications for the future of electric vehicles (EVs). Despite strong opposition, 78% of Tesla shareholders voted against a proposal that would have required the company to disclose any use of deep sea minerals in its supply chain. This comes on the heels of a similar proposal being rejected by General Motors Co. investors earlier this month.
The proposal, put forth by advocacy group As You Sow, aimed to shed light on the controversial practice of deep sea mining, which seeks to extract essential metals like cobalt and nickel from the ocean floor. While proponents argue that these minerals are vital for EV batteries and the transition to clean energy, opponents—including a growing number of nations, scientists, and environmentalists—call for a ban on deep sea mining to protect fragile ecosystems.
The vote at Tesla’s shareholder meeting highlights a larger debate within the auto industry about the necessity of deep sea materials for EV production. Some carmakers, such as Volvo, Volkswagen, and BMW, have already pledged to avoid deep sea minerals in cooperation with environmental organizations.
Tesla, however, has been making strides in using alternative battery technologies, such as lithium iron phosphate (LFP) batteries, which do not rely on nickel or cobalt. As the global battery industry undergoes rapid changes, with a forecasted surplus of cells and a decrease in nickel content in EV batteries, the need for deep sea mining may be called into question.
As the EV landscape evolves, the decisions made by companies like Tesla and GM on the use of deep sea minerals will have lasting consequences for the industry’s environmental impact and competitiveness in the global market. The outcome of these shareholder votes may signal a shift towards more sustainable practices in the EV supply chain.
