Tesla Inc: Establish a Policy for the Use of Deep Sea Mined Minerals

WHEREAS: Global concern is growing about deep sea mining, the process of extracting battery-related minerals from the deep seabed. Studies indicate that such mining risks destroying fragile habitats, dramatically reducing biodiversity, and causing irreversible damage to marine ecosystems.[1]

Deep sea mining dredges the ocean floor, indiscriminately killing sea life in its path and releasing sediment plumes laced with toxic metals into the water column, poisoning marine food chains.[2] These plumes can cause a cascading effect of biodiversity loss far beyond the mining site, potentially disrupting entire food webs.[3]

Evidence indicates that the detrimental impacts of deep sea mining are likely to result in a reduction in food supply and fisheries-related employment.[4] It also harms the ability of oceans to sequester carbon and retain long-held carbon stores in the seabed.[5] Recent studies have illuminated the importance of an undisturbed seafloor environment to the ocean’s ability to generate oxygen.[6] Studies further demonstrate that deep sea mining can more than halve wildlife populations.[7] This finding is particularly concerning, given the discovery of over 5,000 new species in just one region planned for deep sea mining.[8]

Deep sea mining's scientific uncertainty and potentially catastrophic impacts have led many countries, civil society groups, and corporations to voice concern. More than thirty governments have called for a moratorium on deep sea mining.[9] In addition, electric vehicle (“EV”) manufacturers, including BMW, Renault, Rivian, Volkswagen, and Volvo, have joined tech giants Apple, Google, Salesforce, and Samsung in committing to a global deep sea mining moratorium and pledging to keep their supply chains deep sea mining-free until scientific findings are sufficient to assess the environmental risks.[10] This growing support for a deep sea mining moratorium by countries with major EV markets raises competitiveness and regulatory concerns for companies that allow deep sea mined materials into their supply chains.

The mineral needs of large electric vehicle manufacturers such as Tesla are touted as the primary incentive for developing a deep sea mining industry. Yet, EV battery technology is trending away from minerals found in deep sea nodules, with a lithium surplus projected through 2027.[11] Such minerals are currently readily available terrestrially, and future demand for critical minerals can be reduced by over 50% through a combination of new technology, circular economy strategies, and recycling.[12]

By excluding deep sea mined minerals from its supply chains, Tesla can avoid the reputational harm of being linked to this unnecessary and environmentally harmful industry and avoid the financial risks of orienting its supply chain around an industry with an uncertain regulatory future.

BE IT RESOLVED: Shareholders request that Tesla commit to a moratorium on sourcing minerals from deep sea mining.

[1] https://www.fauna-flora.org/publications/fauna-flora-deep sea-mining-report-update-march-2023/, p.28

[2] https://nhm.openrepository.com/handle/10141/622833, p.12

[3] https://www.cell.com/current-biology/fulltext/S0960-9822(23)00815-1

[4] https://www.nature.com/articles/s44183-023-00016-8; https://www.cbd.int/article/food-2018-11-21-09-29-49

[5] https://www.frontiersin.org/journals/marine-science/articles/10.3389/fmars.2021.706161/full; https://www.frontiersin.org/journals/marine-science/articles/10.3389/fmars.2020.00165/full

[6] https://www.nature.com/articles/s41561-024-01480-8

[7] https://www.cell.com/current-biology/fulltext/S0960-9822(23)00815-1

[8] https://www.cell.com/current-biology/fulltext/S0960-9822(23)00534-1

[9] https://deep sea-conservation.org/solutions/no-deep sea-mining/momentum-for-a-moratorium/

[10] https://www.stopdeepseabedmining.org/endorsers/

[11] https://www.blueclimateinitiative.org/next-gen-batteries-eliminate-need-for-dsm, p.2-3; https://www.reuters.com/markets/commodities/lithium-supply-surplus-set-stay-with-battery-makers-help-2024-12-10/