Demand for the metal used in electric car batteries has soared, setting off an international race for deep-sea mining. And there are no rules.
On Sunday, the international seabed authority missed a critical deadline to establish a regulatory framework, allowing companies to apply for licenses before the rules are finalized. Representatives of the agency, which comprises 167 member states and the European Union, have met in Jamaica for two weeks to discuss what should happen next.
Canada, France, Germany and others want a moratorium on deep-sea mining due to little known environmental impacts. But countries including China, Norway and Russia are building frameworks that they claim are less destructive than mining.
On the other hand, the submarine development business is about to start enthusiastically.
“We are preparing the application,” said Gerald Baron, chief executive of the Canadian company Metals Company, which has a deal with the Pacific island nation of Nauru to sponsor a deep-sea mining operation.
The company wanted a final rule in place before it acted, Barron told Dealbook. “But we reserve the right to move forward.”
Regulators are forced to act. a United Nations convention It has established as common property an area more than 12 nautical miles from its territorial waters, meaning that profits from minerals found there should be shared to some extent. The ISA is responsible for establishing profit-sharing and taxation structures, as well as legal and environmental guidelines for mining activities. Alternatively, it could ban large-scale commercial mining altogether. Not sure if there is a legal path for suspension.
Mining can damage ecosystems, but scientists still don’t understand. says Jessica Battle, an ocean policy expert at the World Wildlife Fund. For example, in a study published Tuesday in the journal Nature, seabed mining can disrupt tuna migration patterns, she argues. Climate change pushes fish into new waters. Battle has led efforts to get companies to pledge not to fund seabed mining or source seabed materials in their supply chains. Over 30 of his companies, including BMW, Google, Samsung, Volvo and Volkswagen, signed on. Similarly, famous bank in ukRoyce and Standard Chartered, refuses to do business with deep-sea mining entities. And fisheries industry groups requested a pause.
Some question the economic opportunity. Electric vehicles are expected to account for around 35% of vehicles sold globally by 2030. up from 14% in 2022, according to International Energy Agency forecast. This growth will increase demand for metals such as cobalt, copper and nickel used in batteries. But critics say the prospects for deep-sea mining are questionable given the cost and logistics of mining in remote oceans and transporting metals to land. make a profit. Battle claimed that other solutions are under consideration, including: alternative material Battery reuse and recycling programs can well meet the demand for critical metals. “This industry can start without being needed,” she said of deep-sea mining.
But undersea mining advocates To tell Existing mines are bad for the environmentAnd deep-sea mining could help tackle the control of critical metals from China and Russia. Some see it as an economic lifeline for small island states suffering the worst effects of climate change.
Cook Islands Prime Minister Mark Brown said at the United Nations climate conference, “Don’t ignore the potential to accelerate the environmental transition by not exploring the much-needed minerals for a green revolution in my oceans. Please don’t say,” he said. last year. He called the environmental claims of countries that destroyed the planet “through decades of profit-driven development” “condescending”.
Metals Company’s Barron, who was in Jamaica for an ISA meeting this week, said some of the countries seeking the moratorium also have exploration licenses that allow small-scale mining experiments for research purposes. It pointed out. He believes it’s not what the representative decides. Deep sea mining can start, but when? “That horse went wild,” he said. — Efrat Livni
what is going on here
An eventful week for Lina Khan. FTC chief loses bid to block Microsoft’s $70 billion acquisition of Activision Blizzard, launches first major investigation into OpenAI over ChatGPT’s privacy and security practices, and Republican-led scrutiny over her approach at the agency It was heavily criticized by parliamentary committees. The FTC has dismissed her appeal of Microsoft’s ruling.
Hollywood is closed. The actors voted to go on strike for the first time in 43 years, joining screenwriters who had already taken industrial action. Unions say they want higher wages, higher fees for streaming services and protections to deal with emerging technological threats such as artificial intelligence. Studio executives say the demands are unrealistic at a time when the entire industry is in turmoil.
PGA TOUR-LIV Golf details. A Senate hearing on a possible deal between rival golf competitions has revealed new details about the negotiations. The agreement was announced before it was signed. The PGA Tour didn’t have the resources for the Saudi-backed LIV to fight indefinitely. And governance will be an important part of the final deal.
Meeting on Shopify. of Canadian e-commerce company calculator Measure the financial cost of a meeting of 3 or more people in your employee calendar app. This is the company’s latest effort to stop senseless gatherings. It previously suspended all regular meetings of three or more people.
Tech stocks dominance by the numbers
The stellar rally in tech stocks shows no signs of abating, with the Nasdaq Composite Index hitting a 15-month high this week. One reason is that Wall Street said a better inflation outlook backed by Wednesday’s CPI would force the Fed to turn to a more dovish interest rate policy, pushing tech stocks higher. It is expected that there will be a tendency to do so.
How Big Has Big Tech Got? Bank of America researchers examined the numbers this week. Here are three key points:
-
Stock gains this year have been particularly concentrated in seven companies: Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta.
-
The total market capitalization of the so-called Grand Seven is around $11 trillion, a figure that exceeds the GDP of every country except the United States and China.
-
In total, the group’s market capitalization has increased by $4 trillion this year.
-
Businesses are rich in cash. Six of the seven companies (all except Amazon) have combined net cash debt balances of $200 billion.
Things to see: Large institutional investors are buying these stocks and may sustain their rally in the short term. And interest rate risk for these companies is declining. But the more they grow, the more attention they will get from politicians.
“Political campaign rhetoric will likely include headline risks around regulation of tech mega-caps,” said Savita Subramanian, head of U.S. equities and quantitative strategy at Bank of America. says in the book.
Paris challenges ‘car city’
Health authorities have been fighting obesity for years. Paris is currently declaring war on “vehicle obesity” in an effort to curb the rise of SUVs and other large vehicles and reduce air pollution. The first step is charging drivers more for parking. This could ultimately hurt car companies.
SUV use in Paris has surged by more than 60% in the last four yearsaccording to city officials.This reflects a broader trend across the European Union, where SUVs are half of all car sales According to the European Automobile Manufacturers Association, an automobile industry group, the share in the region has increased from about 14% in 2011.
Critics say it’s bad for the planet. “The City of Paris wants to gradually change the price of paid parking according to the weight and size of the vehicle. ” Frederick Badina Serpetthe city councilor behind the increased indictment told The Guardian. He added that the aim was to “focus on absurd self-deprecation”. …an inexorable increase in the weight and size of vehicles circulating in our cities. “
The new rules will add to automakers’ concerns. Exemptions are expected for large families who require electric vehicles and larger vehicles, although details have not been released. When customs duty goes up, It will go into effect on January 1 and could trigger similar moves in other big cities.
“France has traditionally been one of the most aggressive countries for growth in large vehicles,” Matthias Schmidt, an independent automotive analyst, told Dealbook. Stellantis CEO Carlos Tavares has already told the French government that he is starting to feel the effects of Tesla’s price cuts and faces growing threats from Chinese automakers looking to enter Europe. It has put pressure on the industry to step up its support. Schmidt added that French brands “are in the middle of an uncomfortable sandwich that is squeezed from above and below.”
Our Spotlight: AI as the Bad Guy
The latest in Tom Cruise’s effort to transcend physics for entertainment, Mission: Impossible – Dead Reckoning Part 1 earn $90 million Achieved a franchise record in the first five days. (Contains minor spoilers.)
But this movie shows how the hype about artificial intelligence permeates pop culture. The movie’s big bad guys are the Entity, a rogue artificial intelligence program that poses a threat to humanity.
Over the decades, the relationship between humans and artificial intelligence has been explored by movies such as 2001: A Space Odyssey, Ex Machina and, of course, AI, but ChatGPT was released last year. , many were given their first chance. Being able to converse with AI has made visions of sensory technology feel less sci-fi and caused existential dread for some.
Remember when more than 350 AI experts called out in May to “reduce the risk of extinction with AI”? efficient “Collapse the global economic system, circumvent national security protocols, and whimfully reroute nuclear weapons.” At least in the movies, an almost superhuman secret agent can fend off killer technology. (We guess so. This is a cruise movie, after all.) In real life, it might take some time. Coordinated by parliamentarians around the world — And the mission is… well, time will tell.
thank you for reading! see you on monday.
Please let us know what you think. Please email your comments and suggestions to dealbook@nytimes.com.
