The Metals Company (TMC), a Canadian mining firm, has seen its shares surge after reports emerged that President Donald Trump plans to create a federal stockpile of rare-earth minerals retrieved from the seabed. Here’s what’s driving this development ¹:
- Strategic Importance: Rare earth minerals are crucial for various industries, including electronics, electric vehicles, defense manufacturing, and aerospace applications. China dominates the global supply, producing nearly 70% of the world’s rare earth ores and controlling most of the processing capacity.
- Trade Tensions: In response to Trump’s tariffs on Chinese goods, Beijing restricted exports of seven “heavy” rare earth elements, exacerbating the need for alternative sources.
- Seabed Mining: TMC, partnered with Swiss maritime engineering firm Allseas, is well-positioned to capitalize on this trend, boasting a purpose-built ship and tested deep-sea mining capability. The company’s manganese nodules, growing over hundreds of millions of years, may hold the key to unlocking critical minerals.
- Potential Breakthrough: Preliminary studies suggest these polymetallic nodules could electrolytically split seawater into hydrogen and oxygen, making them the first known non-biological generators of oxygen on Earth.
Key Players and Developments:
- The Metals Company (TMC): A Canadian mining firm with a deep-sea mining capability and partnership with Allseas.
- US Government: Plans to create a strategic reserve for critical rare earth minerals, potentially creating a large-scale market for seabed-sourced products.
- Trump Administration: Has reportedly held talks with TMC about granting an American license to extract minerals in international waters.
Meanwhile, Russia’s own underwater activities have raised concerns, with their spy ship Yantar tracked by the Royal Navy in British waters, highlighting the growing importance of subsea surveillance and security
Top image: courtesy of Richard Baron CC
