TMC ignites America’s deep-sea mining revival with first-ever U.S. seabed permit application

In a milestone development for the critical minerals industry, The Metals Company USA LLC (TMC USA), a wholly owned U.S. subsidiary of The Metals Company Inc. (NASDAQ: TMC), has formally submitted applications to the National Oceanic and Atmospheric Administration (NOAA) for one commercial recovery permit and two exploration licenses under the United States‘ seabed mining law. The move represents the first such application under the Deep Seabed Hard Mineral Resources Act (DSHMRA) in decades, coming days after the U.S. administration issued an Executive Order prioritising offshore critical minerals.

The commercial permit application and accompanying exploration requests target vast seabed areas in the Clarion Clipperton Zone (CCZ), an underexplored stretch of the Pacific Ocean renowned for its polymetallic nodule deposits rich in nickel, cobalt, copper, and manganese—minerals central to energy storage, EVs, defence manufacturing, and clean infrastructure.

What Permits Has TMC USA Applied For?

The company’s application package includes a commercial recovery permit designated TMC USA-A_2, covering 25,160 square kilometres in the CCZ, and two exploration licenses—TMC USA-A and TMC USA-B—encompassing a combined 199,895 square kilometres. These areas contain extensive polymetallic nodule deposits with SEC SK 1300-compliant indicated and measured resources.

TMC USA estimates that its exploration blocks contain around 1,635 million wet tonnes of polymetallic nodules, with internal projections suggesting a further 500 million tonnes of untapped exploration upside. Based on current estimates, these nodules hold approximately 15.5 million tonnes of nickel, 12.8 million tonnes of copper, 2.0 million tonnes of cobalt, and 345 million tonnes of manganese.

These volumes, if approved and extracted, would significantly bolster U.S. supply chains for energy transition and critical infrastructure sectors currently reliant on imports from countries like China and the Democratic Republic of Congo.

What Role Does the Executive Order Play?

The April 2025 Executive Order titled ‘Unleashing America’s Offshore Critical Minerals and Resources’ has catalysed regulatory momentum for seabed mining within the U.S. jurisdiction. It directs the Department of Commerce to fast-track DSHMRA permitting and calls on the Departments of Energy and Defense to assess how seabed minerals can support the National Defense Stockpile and strategic offtake agreements.

As a result, NOAA is now required to issue an initial compliance determination for TMC USA’s exploration licenses within 30 days, while the commercial permit application will be reviewed for completeness within 60 days. A full environmental and technical evaluation will follow thereafter.

Why Is the Clarion Clipperton Zone Strategically Important?

Located nearly 1,300 nautical miles southwest of San Diego, the Clarion Clipperton Zone contains some of the world’s largest known untapped deposits of polymetallic nodules. These mineral-rich concretions form over millions of years on the seafloor and can be harvested with relatively lower carbon intensity compared to conventional land-based mining.

U.S. interest in the CCZ dates back to NOAA-led oceanographic surveys in the 1970s and 80s. However, development has long been hindered by delays at the International Seabed Authority (ISA). TMC’s strategic pivot to the U.S. regulatory pathway under DSHMRA seeks to bypass those obstacles and deliver near-term commercial production.

How Is The Metals Company Positioned in the Sector?

The Metals Company has spent more than a decade investing over $500 million in seabed mineral science, offshore engineering, and low-impact recovery systems. It holds two ISA-sponsored contracts in the CCZ via partnerships with the Republic of Nauru and the Kingdom of Tonga, giving it operational insights into the terrain it now aims to mine under U.S. jurisdiction.

CEO Gerard Barron said the company’s filing marks a major inflection point in both America’s mineral independence strategy and global seabed mining leadership. He added that TMC has built the world’s most advanced nodule recovery system and stands ready to deliver metals essential for batteries, grids, and industrial defence infrastructure.

The company’s design focuses on “shovel-ready” deployment using robotic collectors and onboard processing systems designed for environmental traceability and reduced seabed disturbance.

What Are the Environmental and Regulatory Considerations?

TMC’s permit applications are based on extensive environmental baseline studies, impact assessments, and engineering data collected since 2011. The company has pledged compliance with NOAA’s environmental review frameworks and is expected to face a rigorous evaluation process involving stakeholder consultations, peer-reviewed scientific input, and public commentary.

Environmental groups and academic institutions have called for greater scrutiny over deep-sea mining, citing the need to protect fragile marine ecosystems. NOAA’s upcoming reviews will likely become a test case for how the U.S. balances mineral development with ecological stewardship.

How Are Investors Responding to TMC’s Strategic Pivot?

Shares of TMC (NASDAQ: TMC) have rallied in recent weeks, closing at $3.14 on April 30, 2025, up significantly from a year-to-date low of $0.72. This upward trend is being interpreted by investors as a validation of the company’s strategic direction and regulatory momentum under the DSHMRA framework.

Trading volumes surged to over 58 million shares in late April, reflecting strong retail and institutional interest. The market has responded favourably to TMC’s first-mover advantage in U.S. seabed mining, with Alliance Global Partners maintaining a “Buy” rating and setting a price target of $4.50. Other analysts have projected average 12-month price targets around $4.32, implying further upside potential.

Buy-Sell-Hold Outlook: Based on current market trends, regulatory tailwinds, and geopolitical urgency for supply chain diversification, TMC is increasingly seen as a speculative but strategic “Buy” for long-term investors seeking exposure to the critical minerals supply chain.

Institutional Flows: While institutional holdings remain modest at 4.39% of outstanding shares, activity has picked up. Investment managers such as Old West Investment Management and Prudential Financial have added TMC to their portfolios. Insider ownership, including substantial stakes by Chairman Gerard Barron and co-founder Andrei Karkar, indicates internal confidence in the company’s near-term milestones and strategic vision.

What’s Next for TMC USA and the U.S. Deep-Sea Mining Sector?

Over the coming 60 days, NOAA’s evaluations of TMC USA’s applications will be closely watched as a bellwether for seabed mining policy in the United States. A favorable determination would establish a regulatory benchmark under DSHMRA, potentially attracting other U.S.-based companies to the sector.

At the same time, congressional engagement with the seabed mining topic is likely to intensify. Lawmakers may push for legislation to establish clearer revenue-sharing models, environmental liability rules, and domestic mineral processing incentives tied to national security imperatives.

For TMC, the coming months represent a critical window. The company is expected to ramp up investor communication, finalize offshore engineering readiness, and prepare for environmental compliance reporting. With strong federal signals and a defined legal path, it may be on track to initiate the world’s first commercial-scale deep-sea polymetallic nodule recovery operation.