TMC secures $85M from Korea Zinc to boost deep-sea push

[Redator]

Canada’s The Metals Company (NASDAQ: TMC) said on Monday that South Korean refiner Korea Zinc will invest $85.2 million in the company, a major boost for its plans to extract critical minerals from the seafloor.

The deal gives Korea Zinc a 5% stake in TMC through the purchase of 19.6 million shares at $4.34 each. It also includes a three-year warrant allowing the South Korean refiner to acquire an additional 6.9 million shares at $7 apiece.

TMC shares soared on the news and were trading almost 18% higher at $5.11 apice around 11 am New York time. The company’s market capitalization is sitting at $1.91 billion.

The move comes as TMC seeks a US permit to begin commercial harvesting of polymetallic nodules from the ocean floor. These nodules contain nickel, copper, cobalt and manganese—metals essential to electric vehicles, defence applications and grid infrastructure critical to the global energy transition.

“This is more than capital—it’s alignment on values, on urgency, and on building a resilient supply chain for the United States,” chief executive officer Gerard Barron, said in the statement. “Korea Zinc is probably the only company outside of China that has the capability to take TMC USA’s materials and turn them into metal product formats required in the US.”

Trump is the best news for deep sea mining – The Metals Company CEO

The partnership arrives amid growing U.S. efforts to reduce dependence on China for critical minerals. Both the Biden and Trump administrations have prioritized reducing reliance on China for critical minerals.

President Donald Trump is reportedly considering an executive order that would fast-track deep-sea mining in international waters by bypassing the United Nations-backed review process.

Surging interest

Several nations, including the Cook Islands, Norway and Japan, are also exploring deep-sea mining within their territorial waters, which extend 200 nautical miles from shore. 

Supporters claim seabed extraction has a smaller environmental footprint than land-based mining. Critics urge caution, citing the need for further research into its long-term ecological impact.

Seabed mining enthusiasts believe the activity is vital to meeting global demand for minerals. According to the International Energy Agency, demand for copper and rare earth metals could increase by 40%, while the need for nickel, cobalt and lithium may rise by 60%, 70% and 90% respectively, driven by clean energy technologies.

TMC is among a growing list of companies exploring seabed mining. Others include California-based Impossible Metals, Russia’s JSC Yuzhmorgeologiya, Blue Minerals Jamaica, China Minmetals, and Marawa Research and Exploration of Kiribati.

TMC expects the Korea Zinc investment to close on June 26.