Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
“You’ll get better at damp places,” he squeals Disney Crab Sebastian to the Little Mermaid. Emotions are shared enthusiastically by a group of millions of investors in extracting useful metals from the seabed. The political push for US independence in strategic products is music to their long, insatiable ears.
President Donald Trump is expected to issue an executive order that bolsters plans to harvest polymetal nodules formed under the Pacific Ocean. These black lumps are rich in nickel, cobalt and manganese. It is frequently used in the manufacture of batteries for mobile devices and electric vehicles. Nickel also contributes to the production of stainless steel, increasing its industrial importance.
The harvest of deep sea nodule is controversial as the seabed and the results of rubbing it remain somewhat mystical. There have been very few mining tests. Sessile Megafauna – large creatures stuck to the seabed – is probably not a fan. Non-governmental organizations and many countries, including the UK, require a suspension. Trump’s issuing permits without International Undersea Authority (ISA) oversight would directly challenge global consensus.
However, in the eyes of a president who views trade relations with his economic rival as vulnerable, there are geopolitical orders that are at stake. China controls the production of strategic metals and restricts some exports in response to US tariffs. Tapping of supply close to home is a negotiation tip that the White House can use to keep global supply lines open and an insurance policy if it closes.
It is unclear whether this will change US geopolitical property, but it will certainly be a sea change for metal companies. TMC was made public in 2021 by merging with a special purpose acquisition company. The transactions that Citigroup and Nomura handled were flops. Stocks are 80% below their early peak despite doubling this year.
Trump will likely bring timely cash infusions into the sector from outside investors. TMC had $3.5 million on its balance sheet at the end of 2024, funded by CEO Gerard Barron. The company estimated that $7 billion would be needed to reach full production in 2021, but it took down the company with the addition of partner companies. Loke Marine Minerals, a deep-sea hopeful rival who recently filed for bankruptcy.
Certainly, even with funding and White House approval, Marine supremacy is a distant prospect. ISA, a UN derivative that claims jurisdiction over the high seas, shouts fouls. Nevertheless, Trump has given us some tips for creating a temporary, if any, investment boom. In tariffs that freeze opportunities for land trade, Sebastian was probably right: hot under the water.
john.foley@ft.com
