In late March 2021, four companies with very different places in the modern economy put their names to a shared promise: BMW, Volvo, Samsung SDI and Google declared they would keep metals taken from the deep ocean floor out of their sourcing, supply chains and financing until someone can show the work can be done without harming the sea. It is a small act of restraint arriving at a moment when the world's appetite for batteries and electronics is pulling hard toward the same seabed minerals. The companies framed their caution as a matter of humility before what remains unknown about ocean life
BMW, Volvo, Samsung SDI and Google Pledge to Shun Deep-Sea Mined Metals Until Safety Is Proven
Before any deep-seabed mining occurs, safety must be clearly demonstrated.
Mark
Why does a pledge from four companies matter for an industry that barely exists yet?
Mimi
Because they sit on the buying side. If carmakers and battery makers say they won't take the metals, miners have a harder time finding customers and financing.
Mark
What exactly did they promise?
Mimi
Not to source deep-seabed minerals, to keep them out of their supply chains, and not to finance such mining. They also want governments to back a moratorium.
Luke
Worth noting the condition, though. It's not a permanent ban. It holds until safety is clearly demonstrated.
Mark
And the market numbers?
Mimi
BCC Publishing projects growth from about $650 million in 2020 to $15.3 billion by 2030.
Luke
That's one publisher's projection, not a measured fact. And the article doesn't say how much metal any of these four companies would have bought from the seabed.
Mark
So the practical effect is unclear?
Luke
Right. The report calls it headwinds for the industry, but it doesn't quantify any lost sales or deals.
Mimi
The Nautilus Minerals bankruptcy in 2019 shows how public outcry and money trouble can sink a project, though the source ties it to both factors, not outcry alone.
Luke
Agreed. And whether others join is still unknown.
Le Pouls
- Four major firms, led by BMW, have publicly refused deep-sea metals until mining is proven safe, cutting against an industry eager to tap the seabed.
- Rising demand for cobalt, lithium and nickel from electric vehicles and electronics is pushing miners toward untouched ocean floors.
- The companies are pressing governments to back a moratorium and inviting other firms to sign on, trying to turn a single pledge into a wider boycott.
- Activists and environmentally minded investors are tightening their scrutiny, and the market for deep-sea mining is projected to swell toward $15.3 billion by 2030.
- The shadow of Nautilus Minerals' 2019 bankruptcy hangs over the sector, and the outcome now depends on whether peers and governments follow the pledge or leave it a lone gesture.
In late March 2021, four companies with very different places in the modern economy put their names to a shared promise: BMW, Volvo, Samsung SDI and Google declared they would keep metals taken from the deep ocean floor out of their sourcing, supply chains and financing until someone can show the work can be done without harming the sea. It is a small act of restraint arriving at a moment when the world's appetite for batteries and electronics is pulling hard toward the same seabed minerals. The companies framed their caution as a matter of humility before what remains unknown about ocean life and the climate systems the deep sea quietly supports.
On a Wednesday, a letter appeared on noseabedmining.org bearing four names: BMW, Volvo, Samsung SDI and Google. BMW, the German carmaker, led the effort, joined by Sweden's Volvo AB, the South Korean battery maker Samsung SDI Co., and Alphabet's Google. Together they vowed not to source, finance or stock metals mined from the deep seabed until that mining can be shown to protect the marine environment.
Their reasoning was plain. Too little is known about the deep ocean, and the risks to ocean health, fisheries and the climate functions the sea performs are too serious to proceed on hope. The companies asked governments to support a moratorium and invited others to join them.
The pledge arrives as demand for cobalt, lithium and nickel climbs with the spread of electric cars and electronics, and the ocean floor holds a valuable store of those metals. Estimates put the deep-sea mining market at roughly $650 million in 2020, with projections reaching $15.3 billion by 2030.
The stance also adds weight to the pressure already building from activists and investors. It carries a warning from Nautilus Minerals, the Vancouver pioneer that went bankrupt in 2019 after public outcry and financial setbacks on a project off Papua New Guinea. What comes next is whether other companies follow and whether governments answer the call.
On Wednesday, a letter appeared on the website noseabedmining.org carrying the names of four companies: BMW, Volvo, Samsung SDI and Google. Together they committed to staying away from metals pulled from the deep ocean floor until it can be shown that the mining can be done safely.
BMW, the German luxury carmaker, led the group. Volvo AB, the Swedish maker of buses and trucks, joined it, as did Samsung SDI Co., the South Korean battery producer, and Google, the internet company owned by Alphabet Inc. that also makes electronics.
The letter made three specific commitments. The companies said they would not source minerals from the deep seabed, would exclude those minerals from their supply chains, and would not finance deep seabed mining. They also asked governments to support a moratorium and invited other companies to sign on.
Their reasoning was stated plainly in the letter. The lack of knowledge, and the many risks to ocean health, fisheries, sustainable development and important climate functions, they wrote, point clearly to the need for precaution. Before any deep-seabed mining takes place, they said, it must be clearly demonstrated that it can be managed in a way that effectively protects the marine environment.
The pledge lands in a market where the stakes are growing. Demand for cobalt, lithium and nickel is expected to climb over the next decade as manufacturers build more electric cars and electronics, and the ocean floor holds a valuable store of those metals. BCC Publishing estimates the global deep-sea mining market could reach $15.3 billion by 2030, up from roughly $650 million in 2020.
The companies' stance adds to pressure the industry already faces from activists and from investors who are weighing environmental concerns more heavily. The source points to a cautionary example: Vancouver-based Nautilus Minerals Inc., a pioneer in ocean mining, went bankrupt in 2019 after public outcry and financial setbacks on a project off the coast of Papua New Guinea.
On BMW's broader record, The Wall Street Journal's environmental, social and governance research ranks the company in the top 37% for materials sourcing and efficiency among 46 automobile companies worldwide.
What to watch next is whether other companies accept the invitation to join the pledge, and whether any governments respond to the call for a moratorium. Both would show whether the four-company group is the start of a wider buyer boycott or a lone gesture.
Citations marquantes
Before any potential deep-seabed mining occurs, it needs to be clearly demonstrated that such activities can be managed in a way that ensures the effective protection of the marine environment.— Joint letter from BMW, Volvo, Samsung SDI and Google
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