TMC Applauds U.S. Congressional Mandate for 2025 Defense Department Feasibility Study on Nodule Refining
TMC (Nasdaq: TMC) welcomes new legislation mandating a Defense Department feasibility study on refining polymetallic nodule-derived intermediates into high-purity nickel, cobalt, and copper products. The study, due by end of 2025, will be led by the Industrial Base Policy Office to evaluate options for strengthening domestic critical mineral supply chains.
TMC's U.S. subsidiary has applied for a $9 million Defense Production Act Title III grant for domestic refinery feasibility work. The company has already demonstrated success in producing high-grade nickel and cobalt products from nodule intermediates in Ontario, while Pacific Metals Co. in Japan is conducting commercial-scale trials using nodules collected during TMC and Allseas' pilot collection system test.
The initiative, supported by bipartisan lawmakers, aims to address U.S. vulnerabilities in battery supply chains, particularly in nickel refining, as identified in Executive Order 14017.
TMC (Nasdaq: TMC) accoglie la nuova legislazione che impone al Dipartimento della Difesa uno studio di fattibilità sulla raffinazione degli intermedi derivati da noduli polimetallici in prodotti di nichel, cobalto e rame ad alta purezza. Lo studio, che deve essere completato entro la fine del 2025, sarà guidato dall'Ufficio per la Politica della Base Industriale per valutare le opzioni per rafforzare le catene di approvvigionamento domestiche di minerali critici.
La sussidiaria statunitense di TMC ha richiesto un finanziamento di 9 milioni di dollari nell'ambito del Titolo III della Legge sulla Produzione della Difesa per il lavoro di fattibilità delle raffinerie domestiche. L'azienda ha già dimostrato il successo nella produzione di prodotti di nichel e cobalto di alta qualità a partire dagli intermedi dei noduli in Ontario, mentre la Pacific Metals Co. in Giappone sta conducendo prove su scala commerciale utilizzando noduli raccolti durante il test del sistema di raccolta pilota di TMC e Allseas.
L'iniziativa, sostenuta da legislatori bipartisan, mira a affrontare le vulnerabilità degli Stati Uniti nelle catene di approvvigionamento delle batterie, in particolare nella raffinazione del nichel, come identificato nell'Ordine Esecutivo 14017.
TMC (Nasdaq: TMC) da la bienvenida a la nueva legislación que exige al Departamento de Defensa un estudio de viabilidad sobre la refinación de intermedios derivados de nódulos polimetálicos en productos de níquel, cobalto y cobre de alta pureza. El estudio, que debe completarse a finales de 2025, será dirigido por la Oficina de Política de Base Industrial para evaluar las opciones para fortalecer las cadenas de suministro de minerales críticos en el país.
La subsidiaria estadounidense de TMC ha solicitado una subvención de 9 millones de dólares bajo el Título III de la Ley de Producción de Defensa para trabajos de viabilidad en refinerías nacionales. La empresa ya ha demostrado éxito en la producción de productos de níquel y cobalto de alta calidad a partir de intermedios de nódulos en Ontario, mientras que Pacific Metals Co. en Japón está llevando a cabo ensayos a escala comercial utilizando nódulos recolectados durante la prueba del sistema de recolección piloto de TMC y Allseas.
La iniciativa, respaldada por legisladores de ambos partidos, tiene como objetivo abordar las vulnerabilidades de EE. UU. en las cadenas de suministro de baterías, especialmente en la refinación de níquel, como se identificó en la Orden Ejecutiva 14017.
TMC (Nasdaq: TMC)는 다중 금속 결절에서 얻은 중간 제품을 고순도 니켈, 코발트, 구리 제품으로 정제하는 것에 대한 국방부의 타당성 연구를 의무화하는 새로운 법안을 환영합니다. 이 연구는 2025년 말까지 완료될 예정이며, 국내 주요 광물 공급망을 강화하기 위한 옵션을 평가하기 위해 산업 기반 정책 사무소에 의해 주도될 것입니다.
TMC의 미국 자회사 는 국내 정유소 타당성 작업을 위해 900만 달러의 국방 생산 법안 제3조 보조금을 신청했습니다. 이 회사는 이미 온타리오에서 결절 중간체에서 고급 니켈 및 코발트 제품 생산에 성공한 바 있으며, 일본의 Pacific Metals Co.는 TMC와 Allseas의 파일럿 수집 시스템 테스트 동안 수집된 결절을 사용해 상업적 규모의 시험을 진행하고 있습니다.
양당 법정에서 지원되는 이 이니셔티브는 특히 니켈 정제와 관련하여 미국의 배터리 공급망 취약성을 해결하는 것을 목표로 하며, 이는 행정명령 14017에서 확인되었습니다.
TMC (Nasdaq: TMC) se réjouit de la nouvelle législation qui exige du Département de la Défense une étude de faisabilité sur le raffinage d'intermédiaires dérivés de nodules polymétalliques en produits de nickel, de cobalt et de cuivre de haute pureté. L'étude, qui doit être terminée d'ici fin 2025, sera dirigée par le Bureau de la Politique de Base Industrielle pour évaluer les options de renforcement des chaînes d'approvisionnement domestiques de minéraux critiques.
La filiale américaine de TMC a demandé une subvention de 9 millions de dollars dans le cadre du Titre III de la Loi sur la Production de Défense pour des travaux de faisabilité des raffineries nationales. L'entreprise a déjà démontré son succès dans la production de produits de nickel et de cobalt de haute qualité à partir d'intermédiaires de nodules en Ontario, tandis que Pacific Metals Co. au Japon mène des essais à grande échelle avec des nodules collectés lors du test du système de collecte pilote de TMC et Allseas.
L'initiative, soutenue par des législateurs des deux partis, vise à résoudre les vulnérabilités des États-Unis dans les chaînes d'approvisionnement de batteries, en particulier dans le raffinage du nickel, comme l'indique l'Ordre Exécutif 14017.
TMC (Nasdaq: TMC) begrüßt die neue Gesetzgebung, die das Verteidigungsministerium verpflichtet, eine Machbarkeitsstudie zur Raffination von aus polymetallischen Nodule gewonnenen Zwischenprodukten in hochreine Nickel-, Kobalt- und Kupferprodukte durchzuführen. Die Studie, die bis Ende 2025 abgeschlossen sein soll, wird vom Büro für Industriepolitik geleitet, um Optionen zu bewerten, wie die inländischen Lieferketten für kritische Mineralien gestärkt werden können.
Die US-Tochtergesellschaft von TMC hat einen Antrag auf einen Zuschuss in Höhe von 9 Millionen Dollar nach dem Titel III des Verteidigungsproduktionsgesetzes für die Machbarkeitsarbeiten an Raffinerien im Inland gestellt. Das Unternehmen hat bereits gezeigt, dass es erfolgreich hochgradige Nickel- und Kobaltprodukte aus Zwischenprodukten von Nodulen in Ontario herstellen kann, während die Pacific Metals Co. in Japan kommerzielle Tests mit Nodulen durchführt, die während des Testbetriebs des Pilotkollektorsystems von TMC und Allseas gesammelt wurden.
Die Initiative, die von beiden Parteien unterstütz wird, zielt darauf ab, die Schwachstellen der USA in den Lieferketten für Batterien zu beheben, insbesondere in der Nickelraffination, wie in dem Exekutivbefehl 14017 festgestellt wurde.
- Secured government mandate for Defense Department feasibility study on nodule refining
- Applied for $9 million Defense Production Act Title III grant
- Successfully produced high-grade nickel and cobalt products from nodule intermediates
- Ongoing commercial-scale trials with Pacific Metals Co. in Japan
- Strong bipartisan political support for domestic nodule refining initiatives
- None.
Insights
The bipartisan support for polymetallic nodule refining through the FY25 NDAA marks a strategic pivot in U.S. critical minerals policy. This legislative mandate comes with significant implications for TMC's future operations and the broader critical minerals supply chain. The timing aligns with heightened concerns about China's dominance in mineral processing, particularly in battery metals.
The feasibility study requirement, combined with TMC's
The Defense Department's involvement through the Industrial Base Policy Office signals a shift from viewing battery metals purely as commercial commodities to strategic defense assets. This reclassification has profound implications for funding priorities and regulatory treatment. The backing of key Republican figures, including Rep. Elise Stefanik and Rep. Rob Wittman, suggests continued support regardless of potential administration changes in 2025.
The directive's inclusion in the NDAA, rather than through regular appropriations, provides stronger institutional backing and implementation requirements. This framework could expedite permitting processes and unlock additional defense-related funding streams for TMC's operations.
The feasibility study's focus on domestic refining capabilities addresses a critical vulnerability in U.S. battery metal supply chains. TMC's successful production of high-grade nickel and cobalt products in Ontario, coupled with ongoing commercial-scale trials in Japan, demonstrates technical viability. The potential qualification for U.S. critical mineral incentives could significantly improve project economics.
The convergence of defense priorities with commercial battery metal demand creates a unique market opportunity. The emphasis on "responsibly sourced materials" aligns with both ESG requirements and national security objectives, potentially positioning TMC as a preferred supplier for both commercial and defense applications.
- The FY25 National Defense Authorization Act (NDAA) mandates a Defense Department feasibility study on refining polymetallic nodule-derived intermediates to high-purity nickel, copper, and cobalt products
- The study, to be led by the Industrial Base Policy Office, will evaluate options to bolster domestic critical mineral supply chains
- Separately, TMC’s U.S. subsidiary has applied for a
$9 million Defense Production Act Title III grant to advance feasibility work on a domestic refinery for nodule-derived intermediate products - Earlier this year, TMC and SGS successfully produced high-grade nickel and cobalt products from nodule intermediates in Ontario, while Pacific Metals Co. in Japan is conducting commercial-scale trials using nodules collected during TMC and Allseas’ pilot collection system test in the NORI area in 2022. These materials are expected to qualify for U.S. critical mineral incentives supporting clean energy, infrastructure and defense technologies
NEW YORK, Dec. 30, 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 welcomed the signing of legislation calling for financial support from the Defense Department’s Industrial Base Policy office to “assess the feasibility of improving domestic capabilities for refining polymetallic nodule-derived intermediates into high-purity nickel, cobalt sulfate, and copper.”
The legislation, signed into law by President Biden on December 23, 2024, was led by the House Armed Services Committee and calls for the completion of a feasibility study by the end of 2025 for a nodule-derived intermediate refinery which would bring the U.S. closer to addressing the biggest vulnerability in its domestic battery supply chains – nickel refining – as identified in Executive Order 14017. A wide variety of lawmakers, including Trump’s nominee for UN Ambassador, Rep. Elise Stefanik (R-NY-21), and former military officials have urged the Administration to consider polymetallic nodules as a component of its national critical mineral strategy.
Vice Chairman of the House Armed Services Committee, Rep. Rob Wittman (R-VA-01), commented: “Polymetallic nodules have the potential to decouple America’s critical mineral supply chains from our adversaries, ensuring a stable and secure flow of essential materials like nickel, cobalt, and copper. By embracing this domestic refining capability, we can fortify our national security and enhance domestic manufacturing resilience with responsibly sourced materials. I was proud to support the inclusion of the original nodule-intermediate feasibility study amendment in this year’s conferenced National Defense Authorization Act, and I’m pleased to see this critical piece of legislation signed into law.”
TMC CEO and Chairman, Gerard Barron, stated: “I am delighted to see this further tangible support for domestic nodule refining from the United States as Congress moves to secure a stable supply of responsibly sourced critical minerals. Given existing strong support from Republicans in Congress and several key members of President-elect Trump’s administration, we expect 2025 will see a major leap forward in U.S. activity in this industry.”
The NDAA directs “the Secretary of Defense, in coordination with the Assistant Secretary of Defense for Industrial Base Policy, to report to the Committees on Armed Services of the Senate and the House of Representatives, not later than December 31, 2025, with a study on the feasibility and advisability of improving domestic capabilities for refining polymetallic nodule-derived intermediates into high-purity nickel, cobalt, sulfate, and copper for defense applications.”
Leader of the feasibility study directive, Rep. Brad Finstad (R-MN-01), added: “Our adversaries continue to outpace the United States in terms of access to resources and innovation. I’m happy that the FY25 NDAA included a study on the feasibility of improving domestic capabilities for refining deep-sea polymetallic nodule intermediates for defense applications and I look forward to building on these efforts in the future. I am also a proud to co-sponsor of the Responsible Use of Seafloor Resources Act, which calls for the U.S. to support seafloor resource exploration and responsible polymetallic nodule collection by the U.S. and our allied partners. Preventing adversaries like China from monopolizing mineral refining and increasing our critical investments in the domestic refining of deep-sea resources is imperative to national security and the future of defense in the U.S.”
In March, TMC welcomed the introduction of the Responsible Use of Seafloor Resources Act by House Republicans calling for the U.S. to “support international governance of seafloor resource exploration and responsible polymetallic nodule collection by allied partners” and to “provide financial, diplomatic, or other forms of support for seafloor nodule collection, processing and refining.” Later in May, the Company welcomed the allocation of funding under the House version of the fiscal year 2025 NDAA to the Defense Department’s Industrial Base Policy Office to study the feasibility of developing domestic capacity to refine polymetallic nodule-derived intermediates to high-purity nickel, copper and cobalt products. Recent developments follow those in 2023 in which Republicans urged the Defense Department to assess domestic processing of seafloor polymetallic nodules as a means to secure key energy transition metals and “close national security vulnerabilities.”
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.
Contacts
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Forward Looking Statements
This press release contains “forward-looking” statements and information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, TMC’s expectations with respect to a successful grant application under the Pentagon’s Defense Production Act Title III program for feasibility work on a domestic refinery for nodule-derived intermediate products. The Company may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including, among other things: the Company’s strategies and future financial performance; the International Seabed Authority’s (“ISA”) ability to timely adopt the Mining Code and/or willingness to review and/or approve a plan of work for exploitation under the United Nations Convention on the Laws of the Sea (UNCLOS); the Company’s ability to obtain exploitation contracts or approved plans of work for exploitation for its areas in the Clarion Clipperton Zone; regulatory uncertainties and the impact of government regulation and political instability on the Company’s resource activities; changes to any of the laws, rules, regulations or policies to which the Company is subject, including the terms of the final Mining Code, if any, adopted by ISA and the potential timing thereof; the impact of extensive and costly environmental requirements on the Company’s operations; environmental liabilities; the impact of polymetallic nodule collection on biodiversity in the Clarion Clipperton Zone and recovery rates of impacted ecosystems; the Company’s ability to develop minerals in sufficient grade or quantities to justify commercial operations; the lack of development of seafloor polymetallic nodule deposit; the Company’s ability to successfully enter into binding agreements with Allseas Group S.A. and other parties in which it is in discussions, if any; 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 the Company may recover; risks associated with collective, development and processing operations, including with respect to the development of onshore processing capabilities and capacity and Allseas Group S.A.’s expected development efforts with respect to the Project Zero offshore system; the Company’s dependence on Allseas Group S.A.; fluctuations in transportation costs; fluctuations in metals prices; testing and manufacturing of equipment; risks associated with the Company’s limited operating history, limited cash resources and need for additional financing; risks associated with the Company’s intellectual property; Low Carbon Royalties’ limited operating history and other risks and uncertainties, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, that are described in greater detail in the section entitled “Risk Factors” in TMC’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 25, 2024, as amended. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether because of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.
FAQ
What is the timeline for TMC's Defense Department feasibility study completion?
How much grant funding has TMC applied for under the Defense Production Act?
What materials will TMC's proposed refinery process produce?
Where has TMC successfully produced high-grade nickel and cobalt products?
What legislation supports TMC's nodule refining initiatives?
