The Trump administration accelerates deep-sea mining approvals to compete for critical minerals

According to The Information, the Trump administration significantly simplified the deep-sea mining permitting process on Wednesday, aiming to accelerate the extraction of key metals such as copper and cobalt from the Pacific seabed and reduce reliance on non-U.S. supplies. This move could shorten the timeline for initiating mining operations from years to months and marks a more aggressive unilateral action by the U.S. in the competition for critical mineral supply chains. The National Oceanic and Atmospheric Administration (NOAA) issued a notice that greatly reduced the permitting time required for mining mineral-rich nodules from the Pacific seabed, which contain key metals needed for the electric vehicle and defense industries. This action aligns with Trump's contempt for international institutions. The U.S. has chosen to bypass the International Seabed Authority, a UN body that has been drafting rules for such operations for 11 years but has yet to issue any actual mining permits. This policy shift stems from an executive order signed by Trump in April of this year to expedite deep-sea mining. The decision represents a significant boon for deep-sea mining startups. Canadian company The Metals Co. saw its stock rise 13% on Wednesday, with CEO Gerard Barron stating that they would submit a revised permit application compliant with the new regulations on Thursday, expecting to begin mining by the end of next year. Geopolitically Driven Mineral Competition Trump's executive order is driven by geopolitical considerations. Since returning to power a year ago, the U.S. has engaged in repeated contests with other countries over the export of critical products. About 80% of global cobalt and nickel production and 90% of manganese production are controlled by a single country, and these metals are widely used in the defense industry and electric vehicles. However, according to data from the U.S. Geological Survey, the nodules in the Clarion-Clipperton Zone, located three miles below the Pacific surface and 500 miles southeast of Hawaii, contain nearly twice the known terrestrial reserves of nickel, 20% more manganese, over three times the cobalt content, and a significant amount of copper. International startup groups, including The Metals Co., have been urging the International Seabed Authority for years to issue permits allowing them to mine these nodules. However, while the authority has issued dozens of exploration permits, it has not issued any actual mining permits. Barron stated in prepared remarks submitted to a House committee on Thursday that the authority is "stuck in a stalemate." In April of this year, the Trump administration announced it would completely disregard the International Seabed Authority and issue permits independently. On Wednesday, NOAA further expedited the process by eliminating the requirement for mining startups to first obtain exploration permits from the agency before applying for commercial metal recovery permits. Companies can now apply for both permits simultaneously. Questions About Policy Durability The U.S. unilateral action may be forcing the International Seabed Authority to accelerate its actions. Oliver Gunasekara, CEO of Impossible Metals, which also seeks to mine nodules in the Clarion-Clipperton Zone and offshore American Samoa, stated, “The executive order and the fact that The Metals Co. is applying directly puts a lot of pressure on the International Seabed Authority, as it now needs to decide whether it still has relevance.” However, legal experts express concerns about the durability of the Trump administration's measures. Edward Boling, a partner at Perkins Coie who has worked in both Republican and Democratic administrations on maritime law, stated that if future administrations lean towards stricter international law, the Trump administration's actions could backfire and undermine any permits currently granted by NOAA. "Our economy is not an island," Boling said, "it is part of the international market. Frankly, I expect any developer would want to ensure long-term security." Environmental organizations have long opposed deep-sea mining, arguing that the risks to fundamentally unknown marine ecosystems require strict mining regulations. They may continue to pressure regulators. Gunasekara is currently raising $30 million in Series A funding and stated that he will adhere to the processes of the International Seabed Authority. "It's more legitimate," he said, "that’s not to say we think NOAA is not a viable approach. But we believe this is the safer route in the long run."