The electric vehicle dilemma: Guam’s car dealers weigh in on deep-sea mining discussion
- Admin
- 18 hours ago
- 5 min read
By Jayvee Vallejera
Touted as a green alternative to traditional fuel-powered cars, electric vehicles eliminate tailpipe emissions, reducing air pollutants and lowering greenhouse gas emissions.
The electric vehicle industry is rapidly driving a surge in demand for battery metals and spurring a race to the ocean floor.
On Guam, electric vehicles are gaining popularity, a trend incongruent with the community’s general sentiment against deep-sea mining. Residents overwhelmingly oppose the federal government’s plan to exploit the seafloor in waters adjacent to Guam and the Northern Marianas.
Local car dealers, including Atkins Kroll Guam, Triple J Guam and Nissan Guam, walk a tight line between acknowledging the local sentiment and selling electric vehicles that run on batteries made of lithium, cobalt and nickel, the very metals that deep-sea mining companies seek to extract from more than 12,000 feet below the ocean surface.
Their official position on seabed mining, which targets polymetallic nodules that contain rare-earth metals, reflects a wider sentiment among manufacturers that rely on these deep-sea resources to power electric vehicles, cell phones and other low-carbon technologies.
Some carmakers, particularly EV manufacturers, are choosing to avoid sourcing minerals from the seafloor until the environmental risks are better understood. Instead, they support recycling by harvesting metals from used batteries and investing in new battery technologies.
BMW, Volvo, Volkswagen, Renault and Rivian, along with Google and Korean battery maker Samsung SDI, support a global moratorium on deep-sea mining, pledging to exclude ocean-floor metals from their supply chains and vowing not to invest in companies associated with the industry.
Local dealers don’t make the cars they sell, but they must tread a tight balance between corporate conscience and business sense.
Atkins Kroll Guam sells Toyota, BMW and Chevrolet EVs and hybrids. Triple J Guam is the distributor of GMC, Ford, Hyundai and Kia EVs, and Honda, Mitsubishi and Ford hybrids. Nissan Guam offers the brand’s EV lineup.
“While electric vehicle batteries do rely on critical minerals, Nissan Guam does not advocate for seabed mining,” said Journey Beltran, general manager of Nissan Guam. “Decisions related to mineral sourcing are addressed at the global manufacturing and regulatory level our role locally is focused on serving the transportation needs of our community responsibly.”
At this time, Beltran said, seabed mining does not factor into Nissan Guam’s operations or electric vehicle offerings. “We do not see it having a direct impact on our business,” he added.
Many companies are jockeying to be the first to raid the sea floor of these. The underwater expanse between Hawaii and Mexico—known as the Clarion-Clipperton Fracture Zone—is littered with trillions of mineral-rich nodules. It is estimated to contain six times more cobalt and three times more nickel than terrestrial reserves. That abundance has made these international waters an attractive magnet for deep-sea mining.
Jay Jones, executive vice president of Triple J Enterprises, Inc., said Guam is home and “everything we do at Triple J is guided by what’s best for our island, our people, and future generations.”
Jones said Triple J Guam supports innovation and the move toward cleaner transportation through electric vehicles, but it also deeply respects the strong concerns being voiced in the Guam community about seabed mining.
“We believe any discussion around development must be thoughtful, balanced and grounded in environmental responsibility and cultural respect. At the end of the day, our focus remains on listening to our community and supporting solutions that protect and sustain Guam for the long term,” he added.
In 2020, EVs accounted for about 3 percent of global car sales. By 2024, that figure rose to 22 percent. Sales are projected to increase thirtyfold over the next decade and continue growing thereafter.
On Guam, there were more than 100 registered users on the FlowEV app. There were only 13 EVs on island in 2022; 23 in 2023, and more than 50 in the first quarter of 2024.
The government of Guam is assessing the transition of fossil-fueled government vehicles to electric vehicles, with Guam Power Authority and the Department of Public Works developing a rate plan for building solar charging stations for electric buses and vehicles.
The Guam Plug-In Electric Drive Motor Vehicle Rebate Program offers individuals, businesses, and non-profit organizations the opportunity to purchase an electric vehicle to push the transition from fossil-fueled-powered cars to electric-powered cars.
The program, funded through the U.S. Department of the Interior, Office of Insular Affairs' Energizing Insular Communities Program, offers rebates for not more than 10 percent of the total base price of a qualified plug-in electric drive motor vehicle not to exceed $3,000. The program’s goal is to reduce fuel consumption, reduce harmful emissions into the environment and stimulate Guam’s economy.
Atkins Kroll Guam said that nothing in its current sales or service operations depends on seabed mining. In a statement, AK Guam said it respects the conversations taking place on Guam. “While Atkins Kroll does not set or influence mining policy, we believe it is important to listen respectfully and be mindful of the values, environment and livelihoods that matter to our people,” it said in a statement.
The minerals needed for batteries that power electric vehicles and hybrid cars could be found on land. In fact, more than 75 percent of the world’s lithium and rare-earth elements come from Australia, China and Congo, which also holds more than 70 percent of global cobalt production.
However, as land-based mines become depleted or harder to access and demand for minerals continues to spike, many companies and governments are turning their attention to the motherlode thousands of feet below the ocean surface.
While EVs have been promoted as a climate change solution, researchers offer conflicting opinions.
A 2021 study commissioned by The Metals Company, a Canadian entity engaged in the deep-sea mining industry, found that making electric vehicle batteries from deep-sea rocks can dramatically reduce climate change impacts compared to land-based ores.
The peer-reviewed research shows up to a 90 percent reduction in the carbon footprint of critical minerals used in EV batteries when sourced from deep-sea polymetallic nodules compared with conventionally mined land-based ores.
On the other hand, the nonprofit Deepsea Conservation Coalition cited scientific analysis and new industry developments showing that deep-sea mining is not needed to transition to net-zero by 2050.
“For example, a study by the Institute for Sustainable Futures concludes that ‘a transition towards a 100 percent renewable energy supply … can take place without deep-sea mining,” the coalition said. “This position is reflected in the fact that a growing number of businesses, including major EV brands and battery companies such as BMW, Rivian, Renault, Scania, Volvo and Volkswagen, support a moratorium on deep-sea mining.”
The coalition said that advances in EV battery technologies over the last several years have led to the widespread use of EV batteries that don’t use cobalt, nickel or manganese.
On Guam, car dealers maintain a safe distance from the debate. Atkins Kroll said that, as a long-running business on island, its first responsibility has always been to the people of Guam. “Our focus remains on supporting our community, providing responsible transportation choices, creating local jobs and operating with transparency, care and integrity—today and for the long term,” it added.
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