How the Electric Vehicle Industry Can Benefit From Deep Sea Mining

Deep sea mining and electric vehicles (EVs) may not seem like an obvious connection, but there are actually some important links between the two.

Many of the minerals used in the batteries that power EVs are found in deep sea deposits, such as cobalt, nickel, copper, and manganese. These minerals are also essential for the production of smartphones. As the demand for EVs and smartphones continues to grow, there is increasing interest in exploring and exploiting deep sea mineral deposits.

However, deep sea mining is a complex and challenging process, with significant environmental risks. The deep ocean floor is a fragile and largely unexplored ecosystem, and mining activities could have significant impacts on marine life and the broader ocean environment.

In addition, the process of extracting minerals from deep sea deposits requires specialized equipment and expertise, which can be costly and challenging to develop. Nonetheless, some countries and companies are investing in deep sea mining technology and exploring the potential of this new frontier.

One of these companies, is The Metals Company (TMC), and their CEO, Gerard Barron, predicts deep sea mining will begin in 2024.

Twenty-one billion tonnes of polymetallic nodules rest on the ocean floor in the Nori Clarion-Clipperton Zone project, the world’s #1 nickel mining area. Only sovereign nations and state-sponsored contractors can apply to mine in this area. 

TMC has three sponsoring states; the Kingdom of Tonga, the Republic of Nauru, and Kiribati. Its NORI-D Project is the world’s most advanced. Automakers and steelmaking companies have shown more interest since many nickel and manganese extracts go to the automobile and steelmaking industry.

Although TMC is one of 20 multinational mining companies with active contracts to explore the region, the International Seabed Authority (ISA) says it will start accepting applications from other companies interested in the area in July.

There’s been significant pushback by ISA member states like Germany, France, Spain, New Zealand, and more. They won’t approve mining contracts until sufficient environmental protections for the seabed are in place. To that effect, the ISA is speeding efforts to implement adequate mining regulations by July 2023.

On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.