In the Movie:
When Link is talking to Zee (who is sister to Tank & Dozer), she mentions 'I lost two brothers to that ship' Thus, it is assumed that Tank died. The last time we saw him he had a hole in his stomach so maybe it got infected or something. Anyway, he's dead. Period.
In reality:
I believe the actor Marcus Chong made some rather over-the-top demands to appear in the sequels: higher pay, equal billing with Keanu, Carrie-Anne and Laurence, etc. and the decision was made to replace the Tank character. There are some "Save Tank" websites which have more detail, but I heard that "negotiations" between Warner Brothers and Chong got rather nasty.
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