TMC and SGS Produce World-First Cobalt Sulfate from Deep-Seafloor Polymetallic Nodules
TMC, in collaboration with SGS, has successfully produced the world's first cobalt sulfate from deep-seafloor polymetallic nodules. This was achieved through TMC's efficient hydrometallurgical flowsheet design, which processes high-grade nickel-copper-cobalt matte directly to high-purity cobalt sulfate without producing cobalt metal and generates fertilizer byproducts instead of solid waste. This milestone follows TMC’s recent production of nickel sulfate and aims to decrease reliance on land-based cobalt deposits. TMC's projects are deemed the largest undeveloped nickel sources, capable of meeting the needs of 280 million electric vehicles. With increasing demand for critical battery metals, there is heightened interest in marine minerals. In May, Congress allocated $2 million to explore domestic nodule refining capacity, and in March, legislation was introduced to support seafloor nodule collection and processing. TMC also signed an MOU with Pacific Metals for a feasibility study on processing polymetallic nodules.
- TMC produced the world's first cobalt sulfate from deep-seafloor polymetallic nodules.
- Efficient hydrometallurgical process converts nickel-copper-cobalt matte to high-purity cobalt sulfate without cobalt metal production.
- TMC's flowsheet design produces fertilizer byproducts, avoiding solid waste and tailings.
- Follows last month's successful production of the world's first nickel sulfate derived from seafloor nodules.
- TMC's projects can meet the needs of 280 million electric vehicles.
- Increasing interest in marine minerals due to the demand for critical battery metals.
- Congress allocated $2 million for studying domestic nodule refining capacity.
- March legislation supports seafloor nodule collection, processing, and refining.
- MOU signed with Pacific Metals for a feasibility study on processing polymetallic nodules.
- No direct mention of commercialization timelines for the cobalt sulfate production.
- Potential environmental concerns related to deep-seafloor mining activities.
- Unclear cost implications and economic viability of the new production process.
- No information on market acceptance or contracts for the produced cobalt sulfate.
- Dependence on legislative support and funding for future advancements.
TMC's achievement in producing cobalt sulfate from deep-seafloor polymetallic nodules represents a significant breakthrough. For retail investors, it is important to understand the financial implications of this milestone. Cobalt sulfate is a critical component in electric vehicle (EV) batteries and the
From a financial perspective, this advancement could positively impact TMC's revenue streams and stock valuation. The company is also addressing environmental concerns by minimizing solid waste, which aligns with global sustainability trends. However, investors should remain cautious as the commercial viability of seafloor mining still faces regulatory, technical and environmental challenges that could affect profitability in the long term.
In the short term, positive market sentiment could drive stock prices up. In the long term, the success will largely depend on TMC's ability to scale the technology while navigating regulatory landscapes effectively.
The production of cobalt sulfate from seafloor polymetallic nodules marks a significant milestone in TMC's journey. Cobalt is a key ingredient in the battery manufacturing industry, especially for EVs. Market dynamics indicate a growing demand for sustainable and reliable sources of cobalt as the world shifts towards greener energy solutions. TMC's ability to generate high-purity cobalt sulfate from seafloor nodules is an appealing proposition for battery producers looking to secure their supply chains.
However, the market adoption of this new source will depend on several factors. These include cost-efficiency compared to traditional sources, the scalability of TMC's operations and the regulatory environment concerning deep-sea mining. While the initial response may be positive due to the innovative approach and environmental benefits, market players will scrutinize the long-term feasibility and sustainability of TMC's production process.
If TMC can prove that their method is both economically viable and environmentally sustainable, it could attract significant interest from large battery manufacturers and investors focused on ESG (Environmental, Social and Governance) criteria.
The production of cobalt sulfate from seafloor polymetallic nodules by TMC and SGS is a noteworthy development from an environmental perspective. Traditional mining methods often lead to significant ecological damage, including habitat destruction and soil and water pollution. TMC's approach aims to reduce these negative impacts by avoiding the generation of solid waste or tailings and instead producing valuable fertilizer byproducts.
However, the environmental impact of deep-sea mining still raises concerns. The long-term effects on marine ecosystems are not yet fully understood and there is potential for habitat disruption on the seafloor. It's important for investors to consider the environmental risks and the company's commitment to sustainable practices. Regulatory scrutiny and environmental advocacy may also impact the project's success.
On the positive side, if TMC can demonstrate that its process is less harmful than traditional mining, it could set a new standard in the industry and attract investors who prioritize sustainability. The company's ability to address these environmental concerns transparently and effectively will be key to its long-term success.
- As part of TMC’s pilot-scale nodule processing, SGS and TMC produced the world's first cobalt sulfate from deep-seafloor polymetallic nodules, continuing to indicate TMC’s resource is suitable for battery and energy transition markets
- The cobalt sulfate was produced in a testing program conducted in collaboration with SGS applying TMC’s efficient flowsheet design that processes high-grade nickel-copper-cobalt matte directly to high-purity cobalt sulfate (without making cobalt metal) and produces fertilizer products instead of solid waste or tailings
- Key milestone advances TMC’s aim to decrease reliance on land-based cobalt deposits and supply chains, and follows last month’s successful production of the world’s first nickel sulfate derived exclusively from seafloor polymetallic nodules
NEW YORK, June 12, 2024 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest estimated undeveloped source of critical battery metals, today announced that it has successfully produced the world’s first cobalt sulfate derived exclusively from seafloor polymetallic nodules. The cobalt sulfate was generated during bench-scale testing of TMC’s hydrometallurgical flowsheet design with SGS Canada Inc. (“SGS”). The test work was carried out at SGS’ Metallurgical Centre of Excellence testing facility in Lakefield, Ontario.
Based on samples of nickel-cobalt-copper matte first produced by TMC in 2021, the Extractive Metallurgy team at SGS tested TMC’s efficient flowsheet to process high-grade nickel-copper-cobalt matte directly to high-purity cobalt sulfate without making cobalt metal, while producing fertilizer byproducts instead of solid waste or tailings. This milestone follows last month’s successful production of nickel sulfate, a key raw material input used in the production of energy-dense electric vehicle batteries.
“This achievement further demonstrates the potential for seafloor polymetallic nodules as a valuable resource,” said Dr. Jeffrey Donald, TMC Head of Onshore Development. “Following the success of our first nickel sulfate production in April, production of the world’s first cobalt sulfate from deep-seafloor nodules is another important milestone for TMC and for creating a responsible supply of metals required for human flourishing. SGS continues to execute at a high level and this milestone demonstrates the viability of our process and our dedication to near-zero solid waste nodule processing.”
Carlos Cordoba, Vice President of Natural Resources at SGS North America, commented: “SGS is pleased to support TMC in achieving another milestone towards commercialization of polymetallic nodules suitable for the battery chemicals market. Our technical expertise in extractive metallurgy is driving innovation in the mining industry and we look forward to continuing to set the benchmark as a trusted service provider at every stage of the mining project lifecycle.”
TMC and SGS’ success in deriving cobalt sulfate from seafloor polymetallic nodules is a key milestone in advancing TMC’s mission to supply metals for the global energy transition with the least possible negative impacts on planet and people.
In April, TMC and SGS produced the world’s first nickel sulfate derived exclusively from seafloor polymetallic nodules. TMC’s NORI and TOML projects are ranked as the world’s #1 and #2 largest undeveloped nickel projects according to Mining.com, containing in situ quantities of nickel, cobalt, copper and manganese sufficient to meet the needs of 280 million electric vehicles – roughly the size of the entire U.S. light vehicle fleet. With analysts warning that the quantities of critical battery metals like nickel and cobalt available from domestic or allied partners will be insufficient to meet U.S. demand from the energy transition, there is increased interest in and prioritization of marine minerals to support energy and national security.
In May, Congress allocated
About The Metals Company
The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metals commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga. More information is available at www.metals.co.
About SGS
As the world’s leading inspection, verification, testing and certification company, SGS is recognized as the global benchmark for quality and integrity. With more than 99,600 employees, SGS operates a network of over 2,600 offices and laboratories around the world. Visit: www.sgs.ca.
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Forward Looking Statements
Certain statements made in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. The forward-looking statements contained in this press release include, without limitation, statements that waste streams could be reduced by using deep-sea nodules. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside TMC’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: any future results of processing of the polymetallic nodules, including but not limited to the successful production of nickel and/or cobalt sulfate or the ability to commercially produce such products; regulatory uncertainties and the impact of government regulation and political instability on TMC’s resource activities; changes to any of the laws, rules, regulations or policies to which TMC is subject; the impact of extensive and costly environmental requirements on TMC’s operations; environmental liabilities; the impact of polymetallic nodule collection on biodiversity in the CCZ and recovery rates of impacted ecosystems; TMC’s ability to develop minerals in sufficient grade or quantities to justify commercial operations; the lack of development of seafloor polymetallic nodule deposit; uncertainty in the estimates for mineral resource calculations from certain contract areas and for the grade and quality of polymetallic nodule deposits; risks associated with natural hazards; uncertainty with respect to the specialized treatment and processing of polymetallic nodules that TMC may recover; risks associated with collection, development and processing operations; fluctuations in transportation costs; testing and manufacturing of equipment; risks associated with TMC’s intellectual property; and other risks and uncertainties, including those in the “Risk Factors” sections, included in the final prospectus and definitive proxy statement, dated and filed with the Securities and Exchange Commission (the “SEC”) on August 12, 2021 relating to the business combination, in TMC’s Annual Report on Form 10-K for the year ended December 31, 2023, filed by TMC with the SEC on March 25, 2024, and in TMC’s other future filings with the SEC, including TMC’s Quarterly Reports on Form 10-Q. TMC cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. TMC does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based except as required by law.
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FAQ
What did TMC and SGS recently produce from seafloor polymetallic nodules?
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Why is there increased interest in marine minerals for battery metals?
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