Trump administration accelerates deep-sea mining approvals, vying for critical minerals

According to The Information, the Trump administration on Wednesday greatly simplified the deep-sea mining permit process in order to accelerate the extraction of key metals such as copper and cobalt from the Pacific seabed and reduce dependence on non-U.S. supplies. This move could shorten the time required to start mining operations from several years to a few months, and marks the U.S. taking more aggressive unilateral actions in the global critical minerals supply chain race. The U.S. National Oceanic and Atmospheric Administration (NOAA) issued a notice, significantly shortening the permit time needed to mine mineral-rich nodules from the Pacific seabed. These seabed nodules contain key metals required by the electric vehicle and defense industries. This action aligns with Trump’s contemptuous attitude towards international agencies. The U.S. chose to bypass the United Nations’ International Seabed Authority, which has been drafting regulations for such operations for 11 years but has not yet issued any actual mining permits. The policy shift stems from an executive order Trump signed this April to accelerate seabed mining. This decision is a major boon for deep-sea mining startups. Shares of Canadian company The Metals Co. rose 13% on Wednesday. Its CEO, Gerard Barron, said they would submit a revised permit application in line with the new rules on Thursday and expect to start mining by the end of next year. Geopolitically Driven Mineral Scramble Trump’s executive order is driven by geopolitical considerations. Since returning to power a year ago, the U.S. has repeatedly competed with other countries over exports of critical products. About 80% of global cobalt and nickel production and 90% of manganese output are controlled by a single nation, and these metals are widely used in the defense industry and electric vehicles. However, according to U.S. Geological Survey data, nodules in the Clarion-Clipperton Zone, three miles below the Pacific surface and 500 miles southeast of Hawaii, have nearly double the nickel of all known terrestrial reserves, 20% more manganese, three times the cobalt content, and a large amount of copper. A group of international startups including The Metals Co. have for years been urging the International Seabed Authority to issue permits allowing them to mine these nodules. While the agency has issued dozens of exploration permits, no actual mining permits have been granted. Barron stated in prepared remarks for a House committee on Thursday that the agency was “deadlocked.” In April this year, the Trump administration announced it would completely ignore the International Seabed Authority and issue permits independently. On Wednesday, NOAA further accelerated the process by canceling the previous requirement for startups to first obtain an exploration permit from the agency before applying for a commercial metals recovery permit. Now, companies can apply for both permits at the same time. Concerns Over Policy Durability The U.S.’s unilateral actions may be forcing the International Seabed Authority to speed up its response. Oliver Gunasekara, CEO of Impossible Metals, which also seeks to mine nodules in the Clarion-Clipperton Zone and near American Samoa, said: “The executive order and The Metals Co.’s direct application put a lot of pressure on the International Seabed Authority, because it now needs to decide whether it is still relevant.” But legal experts are concerned about the durability of the Trump administration’s moves. Edward Boling, a partner at Perkins Coie who has worked on ocean law under both Republican and Democratic administrations, said that if future administrations favor a stricter approach to international law, the Trump administration’s actions could backfire and undermine any permits NOAA now issues. “Our economy is not an island,” Boling said. “It’s part of the international market. Frankly, I expect any developer would want to ensure long-term security.” Environmental groups have long opposed seabed mining, arguing that risks to the largely unknown marine ecosystem require strict mining regulations. They may continue to apply pressure on regulators. Gunasekara, currently raising $30 million in a Series A round, said he would stick to the International Seabed Authority process. “It’s more legitimate,” he said. “Not that we believe NOAA is not a viable route. But we think in the long run, it’s the safer path.” Risk Disclosure and Disclaimer The market carries risks; investment should be cautious. This article does not constitute personal investment advice and does not take into account the special investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Any investment made based on this article is at your own risk.