Norway poised to open vast ocean area to controversial deep-sea mining
Activists take part at a “Look Down action” rally to stop deep sea mining outside the European Parliament in Brussels on March 6, 2023. (Photo by Kenzo TRIBOUILLARD / AFP) (Photo by KENZO TRIBOUILLARD/AFP via Getty Images)
Kenzo Tribouillard | Afp | Getty Images
Norway is poised to become one of the first countries in the world to approve the controversial practice of deep-sea mining.
In a parliamentary vote on Tuesday, lawmakers in the northern European country are expected to approve the government’s proposal to open Norwegian waters for commercial-scale deep-sea mining.
The vote is expected to pass smoothly after the government’s plans received cross-party support late last year.
Advocates say removing metals and minerals from the ocean’s seabed is necessary to facilitate a global transition away from fossil fuels, adding that the practice is less environmentally damaging than land-based mining.
Critics say deep-sea mining is “extremely destructive,” while scientists warn the full environmental impacts are hard to predict.
Critical minerals such as cobalt, nickel, copper and manganese can be found in potato-sized nodules at the bottom of the seafloor. These minerals are used for electric vehicle batteries, wind turbines and solar panels.
The Environmental Justice Foundation, an international NGO, says the bottom line is that any possible benefits from deep-sea mining “do not outweigh the environmental and economic risks.”
What’s being proposed?
Norway’s proposal paves the way for companies to apply to mine for critical minerals in its national waters near the Svalbard archipelago. The area, which is part of Norway’s extended seabed shelf, is estimated to be larger than the U.K. at roughly 280,000 square kilometers (108,108 square miles).
Norway’s government does not intend to immediately start drilling for critical minerals, if the plan is approved. Instead, companies will need to submit proposals for licenses that will be voted on a case-by-case basis in parliament.
The approval of deep-sea mining would put Norway at odds with both the U.K. and the European Commission, the EU’s executive arm, which have pushed for a temporary ban on environmental concerns.
ROTTERDAM, SOUTH HOLLAND, NETHERLANDS – 2022/02/08: The deep-sea creatures on board the Luciana and the mining vessel Hidden Gem seen in the background, during the demonstration.
Ocean Rebellions protest The Deep Sea Says No Why the deep sea? The deep seabed is largely unexplored, many areas have unique marine life (an estimated 10-million life forms and most are undiscovered) and many areas are important to the survival of all ocean life. Deep Sea Mining in areas like the Clarion Clipperton Fracture Zone (CCFZ) (Pacific Ocean) will destroy the deep seabed and the life that depends on it, destroying corals and sponges that have taken thousands of years to grow. (Photo by Charles M. Vella/SOPA Images/LightRocket via Getty Images)
Sopa Images | Lightrocket | Getty Images
The Norway Environment Agency has previously criticized the government’s impact assessment of the plan, while 120 EU lawmakers wrote an open letter in November calling on the country’s parliament to reject the project.
The letter from EU lawmakers also warned about the risk that the proposal posed for marine biodiversity, the acceleration of climate change and for traditional activities, such as fisheries.
In a separate open letter calling for a pause to deep-sea mining, more than 800 marine science and policy experts across the globe warned that very little is known about deep-sea habitats and biodiversity.
They say that more robust research is necessary to better understand what’s at stake.
“The sheer importance of the ocean to our planet and people, and the risk of large-scale and permanent loss of biodiversity, ecosystems, and ecosystem functions, necessitates a pause of all efforts to begin mining of the deep sea,” the letter says.
Environment
Toyota the EV battery supplier? Honda will use them to power up its 400,000 hybrids in the US
Toyota is now a battery supplier? That’s the plan. Honda will use Toyota’s batteries to power up its around 400,000 hybrids sold in the US.
Toyota will supply batteries for Honda hybrids in the US
Toyota’s $14 billion battery plant in North Carolina is ready for business. The facility will begin shipping out batteries next month, and it looks like Toyota already has its first customer.
According to a new Nikkei report, starting in fiscal 2025, Toyota will supply batteries for the roughly 400,000 Honda hybrids sold in the US.
Honda currently uses batteries from China and Japan for vehicles sold in the US, but the company is (like most) preparing for changes under Trump.
Honda’s electrified vehicles, including EVs and hybrids, accounted for over a quarter of US sales last year. The company sold over 308,500 hybrids and 40,400 electric vehicles in the US in 2024. The batteries will likely be used in the CR-V and other Honda hybrid vehicles.
Earlier this month, an extra 10% tariff on imports from China took effect. And that’s on top of the 10% imposed in February.
With more expected, including a 25% increase in vehicles imported from Japan, automakers are tightening up their supply chains.
A 25% tariff on Japanese vehicles, up from 2.5% currently, is estimated to cost the six major Japanese automakers about $20 billion in the US.
Tariffs on imports from Mexico and Canada could cost Honda roughly $4.7 billion alone. Teaming up with Toyota to use its batteries for its hybrids is part of Japan’s broader global plans to ween off dependence on China and others for batteries and other emerging tech.
The new US plant, Toyota Battery Manufacturing North Carolina (TBMC), is over seven million square feet, or about the size of 121 football fields.
As Toyota’s first in-house battery factory outside of Japan, the plant could be a game changer as Trump’s tariffs take effect. Securing Honda as a buyer will already help Toyota cut costs as it ramps up output.
Toyota plans to ramp up electrified vehicle (EV, PHEV, and hybrid) sales in North America from around 40% last year to 80% by 2030.
Electrek’s Take
Trump’s tariffs are already causing havoc, with nearly every automaker warning that they put the US further behind. Overseas automakers are not the only ones feeling the heat, either.
The “Big Three,” GM, Ford, and Jeep maker Stellantis all build vehicles in Canada and Mexico. GM cut output at its plant in Mexico in January, where the electric Chevy Equinox, Blazer, and Honda Prologue are made. Stellantis halted operations at its Brampton Assembly Plant in Canada last month, where it was expected to launch the Jeep Compass EV production. What’s next?
For Toyota, it looks like its $14 billion bet to build batteries in the US is already paying off. Now, we just need it to introduce more EVs.
After unveiling three new electric SUVs in Europe last week, including the updated bZ4X, Toyota hinted more is on the way for the US. Check back soon for updates.
What do you think? Do you want to see more Toyota EVs in the US, like the new C-HR+? Let us know your thoughts in the comments.
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Environment
If Musk wants to sell Tesla cars to conservatives, Tesla needs stores and service in red states
Elon Musk wants to sell Tesla cars to conservatives, but if that’s the strategy, the automaker should start with having stores and service centers in red states and rural areas.
It’s no secret that Elon Musk’s approval ratings with progressives have been plummeting over the last few years and even more so in the previous few months.
Since he has control over Tesla and he is the only official spokesperson since he let go of the PR department in 2020, the CEO is dragging the automaker along for the ride.
This is a problem for Tesla as Democrats are much more likely to buy electric vehicles than Republicans:
Tesla’s sales have been crumbling over the last few months, and after the stock crashed 15% last Monday, President Trump held a controversial commercial for Tesla with Musk on the steps of the White House on Tuesday.
A day later, it was reported that Musk plans to give Trump another $100 million in political donations.
It was an apparent attempt to try to promote Tesla to Trump’s fans: conservatives.
Based on a Tesla inventory check and new order delivery timeline, we reported that the Trump ad appeared to have little to no impact on the demand for Tesla vehicles.
It could be that people see through Musk and Trump’s quid pro quo and, therefore, don’t value Trump’s “Tessler” endorsement seriously. Still, there’s also a more practical reason why Trump’s fans and conservatives generally don’t buy more Tesla vehicles: the locations of Tesla’s stores and service centers (hat tip to Ben).
Even if some Trump fans were interested in buying a Tesla after the White House commercial last week, they might have been turned off by the idea of having to drive several hours to a store or service center.
Tesla does not have stores or service centers in Alabama, Arkansas, North and South Dakota, Kansas, Montana, Nebraska, or Wyoming.
In some cases, it’s not entirely Tesla’s fault, as some of these states have laws against Tesla’s direct sale models. They force automakers to go through third-party franchise dealerships. This is an abuse of old state laws aimed at protecting dealers against unfair competition from the automakers they represent.
Car dealer lobbies use their influence on state legislatures to use these laws to block Tesla, Rivian, Lucid, and other automakers who never had franchise dealerships from operating their own stores and service centers.
But on top of not having locations in several red states, Tesla also primarily has locations in urban areas, whereas conservatives disproportionally live in rural areas.
The automaker has several dead zones and doesn’t operate locations in smaller cities and towns where there are several Ford, GM, Toyota, and other car dealers:
While it certainly does happen, it’s hard to convince someone to buy a car if they have to drive several hours to pick it up and have it serviced.
Electrek’s Take
In short, it’s not only harder to convince conservatives, on average, to buy an electric vehicle, but Tesla is also not correctly set up to sell and service cars in conservative regions of the US.
Though, I think that’s a small part of the problem.
Cars are not supposed to be political.
Even if Tesla successfully converted a significant percentage of conservatives to electric vehicles, it wouldn’t stop the company’s brand destruction.
Tesla’s reputation amongst Democrats and independents has sharply decreased over the last few years, and especially over the last few months, and that’s thanks to Elon Musk alienating them.
It’s tough to be a successful consumer product company when you have alienated 50% or so of your market.
Tesla is basically becoming the MyPillow of Trump’s second term.
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