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| trump seabed mining |
U.S. Policy Shift Spurs Controversial Deep-Ocean Resource Extraction
The seabed mining industry is experiencing a dramatic policy shift driven by U.S. energy security concerns. Under former President Trump’s directive, U.S. agencies are now expediting mining licenses in international waters. This move aims to reduce reliance on China's critical minerals dominance, especially in cobalt and nickel for EV batteries. However, international opposition, regulatory ambiguity, and unproven technology pose major risks.
TMC Leads Commercial Push Amid Legal and Technical Uncertainty
The Metals Company (TMC), backed by U.S. investors and global processors like Korea Zinc, has filed the world’s first application to mine the seabed under a U.S. mining license. Simultaneously, Trump’s executive order bypasses the UN Convention on the Law of the Sea, challenging the International Seabed Authority (ISA) framework. As a result, TMC faces backlash from ISA delegates, with accusations of “unilateralist hegemonic acts.” The lack of global consensus could impact market access, logistics, and financing for TMC and other U.S.-licensed players.
Meanwhile, technological hurdles remain unresolved. TMC's seabed harvester, developed by Allseas, is still a prototype. Full-scale deployment may take years. Further complicating matters, the U.S. has no industrial capacity to refine seabed minerals, and legislation mandates domestic processing. Pacific Metals in Japan and Korea Zinc are evaluating feasibility, but both signal operations won't start before 2029.
Environmental Concerns and Supply Chain Fragility Persist
Opposition to seabed mining is mounting over ecological risks. Nodules support unique ecosystems, with up to 40% of local deep-sea life dependent on them. Companies like Impossible Metals promise low-impact extraction, but commercial trials remain years away. In addition, metallurgical capabilities in the U.S. have declined, with few engineers trained and only eight aging bulk carriers available for ocean transport.
At the ISA’s 2025 meeting in Jamaica, tensions rose. Thirty-seven nations support a moratorium until environmental assessments improve. Critics argue that any metals mined outside ISA authority could carry reputational, legal, and financial liabilities for processors, investors, and end users.
ScrapInsight Commentary
TMC’s initiative marks a bold shift in U.S. critical mineral strategy, yet lacks infrastructure and global consensus. Investors must weigh geopolitical friction, technological immaturity, and long-term environmental impact. Seabed mining, if regulated multilaterally, could help diversify supply, but unilateral actions may destabilize both markets and regulatory frameworks.
