A group of four companies led by German luxury car maker BMW AG vowed not to use metals mined from the deep sea until there is a way to safely carry out the controversial type of mining, creating headwinds for a burgeoning industry.
Swedish bus-and-truck manufacturer Volvo AB joined BMW, alongside South Korean battery-producer Samsung SDI Co. and Google, the Alphabet Inc.-owned internet giant that also makes electronics.
"The lack of knowledge and the numerous risks to ocean health, fisheries, sustainable development and to important climate functions, point clearly to the need for precaution," the companies said Wednesday in a letter posted on noseabedmining.org. "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."
The companies committed not to source minerals from the deep seabed, exclude these minerals from their supply chains and not to finance deep seabed mining. They also called on governments to support a moratorium and invited other companies to join the pledge.
Demand for cobalt, lithium and nickel is expected to grow over the coming decade to meet manufacturing needs for electric cars and electronics. The ocean floor offers a valuable trove of the metals.
Globally, the deep-sea mining market could grow to $15.3 billion by 2030 from some $650 million in 2020, according to BCC Publishing. Still, miners face headwinds from activists and investors who are increasingly gauging environmental concerns.
Vancouver-based ocean-mining pioneer Nautilus Minerals Inc. went bankrupt in 2019 after public outcry and financial setbacks for a project off the coast of Papua New Guinea.
BMW ranks in the top 37% for materials sourcing and efficiency among 46 automobile companies world-wide, according to The Wall Street Journal's environmental, social and governance research.
Write to Dieter Holger at dieter.holger@wsj.com; @dieterholger
March 31, 2021 at 06:29PM
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BMW launches pledge against deep-sea mining - MarketWatch
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