Critical Minerals Become Strategic Priority Amid Supply Chain Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 35 minutes ago
0mins
Source: Fool
- Supply Chain Control: China controls approximately 70% of rare-earth extraction and 90% of processing, creating a significant influence over the global rare-earth supply chain, prompting the U.S. and others to accelerate the establishment of domestic supply chains to ensure national security.
- Deep-Sea Mining Progress: TMC received NOAA's approval this month, confirming its application compliance and removing a major regulatory hurdle, securing priority rights in the Clarion Clipperton Zone in the Pacific, which is expected to facilitate the company's deep-sea mining operations.
- Partnership Agreement: TMC signed an agreement with offshore engineering giant Allseas to develop the world's first commercial-scale deep-sea nodule collection system, with Allseas covering a significant portion of pre-production costs, thereby reducing TMC's financial burden and protecting its capital reserves.
- Future Outlook: TMC's commercial permit application is underway, with a final decision expected by early 2027, and plans to commence full commercial production in 2028, although execution risks remain high, necessitating cautious investment.
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Analyst Views on TMC
Wall Street analysts forecast TMC stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 5.400
Low
6.50
Averages
8.33
High
11.00
Current: 5.400
Low
6.50
Averages
8.33
High
11.00
About TMC
TMC the metals company Inc. is a deep-sea minerals exploration company. The Company is focused on the collection and processing of polymetallic nodules found on the seafloor in international waters of the Clarion Clipperton Zone in the Pacific Ocean (CCZ), located approximately 1,300 nautical miles southwest of San Diego, California. The CCZ is a geological submarine fracture zone of abyssal plains and other formations in the Eastern Pacific Ocean, with a length of around 4,500 miles that spans approximately 1,737,000 square miles. These nodules contain high grades of four metals (nickel, copper, cobalt, manganese) which can be used as feedstock for battery cathode precursors (nickel, cobalt and manganese sulfates, or intermediate nickel-copper-cobalt matte) for electric vehicles (EV) and energy storage markets; copper cathode for EV wiring, energy transmission and other applications, and manganese silicate for manganese alloy production required for steel production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Critical Minerals Become Strategic Priority Amid Supply Chain Concerns
- Supply Chain Control: China controls approximately 70% of rare-earth extraction and 90% of processing, creating a significant influence over the global rare-earth supply chain, prompting the U.S. and others to accelerate the establishment of domestic supply chains to ensure national security.
- Deep-Sea Mining Progress: TMC received NOAA's approval this month, confirming its application compliance and removing a major regulatory hurdle, securing priority rights in the Clarion Clipperton Zone in the Pacific, which is expected to facilitate the company's deep-sea mining operations.
- Partnership Agreement: TMC signed an agreement with offshore engineering giant Allseas to develop the world's first commercial-scale deep-sea nodule collection system, with Allseas covering a significant portion of pre-production costs, thereby reducing TMC's financial burden and protecting its capital reserves.
- Future Outlook: TMC's commercial permit application is underway, with a final decision expected by early 2027, and plans to commence full commercial production in 2028, although execution risks remain high, necessitating cautious investment.
See More
Rising EV Demand Fuels Nickel and Cobalt Market Growth
- Nickel and Cobalt Market Outlook: The demand for nickel and cobalt is surging due to the expansion of electric vehicles, battery storage systems, and renewable energy projects, with analysts projecting the global nickel market could exceed $60 billion in the coming years, indicating strong long-term growth potential.
- High-Grade Ore Analysis: First Atlantic Nickel Corp. has confirmed that the awaruite ore at its Pipestone XL project's RPM Zone contains 77.62% nickel and 1.69% cobalt, suggesting lower production costs and robust economic benefits for the project.
- Supply Security Trend: Governments are striving to reduce dependence on overseas critical mineral supply chains, driving new mining projects in politically stable regions like North America and Australia, which is attracting investor interest in high-grade nickel and cobalt deposits.
- Battery Metal Demand: As governments push for clean energy initiatives and automakers invest billions into EV production, demand forecasts for battery metals remain very bullish, prompting investors to closely monitor emerging nickel and cobalt exploration companies.
See More
Rising EV Demand Fuels Nickel and Cobalt Market Growth
- Optimistic Market Outlook: The demand for nickel and cobalt is surging due to the global expansion of electric vehicles, battery storage systems, and renewable energy projects, with projections indicating that the nickel market could exceed $60 billion and the cobalt market could reach $20 billion in the coming years, highlighting strong long-term growth potential.
- High-Grade Ore Analysis: First Atlantic Nickel Corp. has confirmed that the awaruite ore at its Pipestone XL project's RPM Zone averages 77.62% nickel and 1.69% cobalt, indicating the company's capability to supply high-quality nickel-cobalt alloys to meet battery manufacturers' needs.
- Cost Production Advantage: Since awaruite does not require traditional smelting, roasting, or acid leaching processes, First Atlantic's ore can be directly used for battery refining and stainless steel production, thereby reducing production costs and enhancing economic viability, which strengthens its competitive position in the market.
- Strategic Partnership Opportunities: With the increasing demand for high-grade nickel and cobalt ores, First Atlantic Nickel is seeking to establish strategic partnerships with battery manufacturers and automakers to ensure future supply chain security, further solidifying its position in the market.
See More
TMC Reports Q1 2026 Financial Results with Strategic Developments
- Financial Overview: TMC reported a net loss of $20.6 million in Q1 2026, consistent with 2025, with a loss per share of $0.05, indicating ongoing profitability challenges that may affect investor confidence.
- Rising Expenses: Exploration and evaluation expenses surged from $9.5 million in 2025 to $13.3 million in 2026, while general and administrative expenses skyrocketed from $8.5 million to $20.7 million, primarily due to executive retention grants, reflecting increased operational and human resource pressures.
- Liquidity Position: As of March 31, 2026, TMC's liquidity stood at $164 million, including a $44 million undrawn credit facility, indicating strong liquidity but necessitating attention to future funding needs and potential financial strain.
- Strategic Partnership Progress: TMC signed a production agreement with Allseas, marking the completion and operation of the first commercial polymetallic nodule collection system, enhancing its market position, while NOAA confirmed compliance for the TMC USA project, further solidifying regulatory compliance and market trust.
See More
TMC Q1 2026 Earnings Call Insights
- Execution-Focused Strategy: CEO Gerard Barron emphasized that 2026 will be execution-focused, highlighting the signing of a production agreement with Allseas, which marks a significant step in advancing the first commercial polymetallic nodule collection system, potentially accelerating TMC's market positioning in deep-sea mining.
- Regulatory Progress: Barron noted that NOAA has determined TMC USA's application to be in full compliance, with expectations to receive the commercial recovery permit in Q1 next year, which will provide legal assurance for operations and facilitate project advancement.
- Financial Status Overview: CFO Craig Shesky reported a net loss of approximately $20.6 million for Q1 2026, with liquidity at around $164 million; despite the losses, the company maintains strong liquidity to support future operations and investments.
- Cost Optimization Potential: Management indicated that short-term cost reductions could be achieved through optimizations in energy use and offshore logistics, although specific figures were not provided, reflecting the company's proactive efforts to enhance operational efficiency.
See More
The Metals Company Reports Q1 2026 Earnings
- Earnings Report: The Metals Company reported a GAAP EPS of -$0.05 for Q1 2026, aligning with market expectations and indicating stability in the current economic environment.
- Liquidity Position: As of March 31, 2026, the company had approximately $164 million in available liquidity, demonstrating financial flexibility for operations and investments.
- Operating Cash Flow: The company utilized $0.6 million in cash for operations during the quarter ended March 31, 2026, reflecting challenges in cost control and resource allocation.
- Market Reaction: Following the signing of a deep-sea mining agreement with Allseas, the company's stock price surged, indicating positive market sentiment regarding its future growth potential.
See More
Critical Minerals Become Strategic Priority Amid Supply Chain Concerns
- Supply Chain Control: China controls approximately 70% of rare-earth extraction and 90% of processing, creating a significant influence over the global rare-earth supply chain, prompting the U.S. and others to accelerate the establishment of domestic supply chains to ensure national security.
- Deep-Sea Mining Progress: TMC received NOAA's approval this month, confirming its application compliance and removing a major regulatory hurdle, securing priority rights in the Clarion Clipperton Zone in the Pacific, which is expected to facilitate the company's deep-sea mining operations.
- Partnership Agreement: TMC signed an agreement with offshore engineering giant Allseas to develop the world's first commercial-scale deep-sea nodule collection system, with Allseas covering a significant portion of pre-production costs, thereby reducing TMC's financial burden and protecting its capital reserves.
- Future Outlook: TMC's commercial permit application is underway, with a final decision expected by early 2027, and plans to commence full commercial production in 2028, although execution risks remain high, necessitating cautious investment.
See More
Rising EV Demand Fuels Nickel and Cobalt Market Growth
- Nickel and Cobalt Market Outlook: The demand for nickel and cobalt is surging due to the expansion of electric vehicles, battery storage systems, and renewable energy projects, with analysts projecting the global nickel market could exceed $60 billion in the coming years, indicating strong long-term growth potential.
- High-Grade Ore Analysis: First Atlantic Nickel Corp. has confirmed that the awaruite ore at its Pipestone XL project's RPM Zone contains 77.62% nickel and 1.69% cobalt, suggesting lower production costs and robust economic benefits for the project.
- Supply Security Trend: Governments are striving to reduce dependence on overseas critical mineral supply chains, driving new mining projects in politically stable regions like North America and Australia, which is attracting investor interest in high-grade nickel and cobalt deposits.
- Battery Metal Demand: As governments push for clean energy initiatives and automakers invest billions into EV production, demand forecasts for battery metals remain very bullish, prompting investors to closely monitor emerging nickel and cobalt exploration companies.
See More
Rising EV Demand Fuels Nickel and Cobalt Market Growth
- Optimistic Market Outlook: The demand for nickel and cobalt is surging due to the global expansion of electric vehicles, battery storage systems, and renewable energy projects, with projections indicating that the nickel market could exceed $60 billion and the cobalt market could reach $20 billion in the coming years, highlighting strong long-term growth potential.
- High-Grade Ore Analysis: First Atlantic Nickel Corp. has confirmed that the awaruite ore at its Pipestone XL project's RPM Zone averages 77.62% nickel and 1.69% cobalt, indicating the company's capability to supply high-quality nickel-cobalt alloys to meet battery manufacturers' needs.
- Cost Production Advantage: Since awaruite does not require traditional smelting, roasting, or acid leaching processes, First Atlantic's ore can be directly used for battery refining and stainless steel production, thereby reducing production costs and enhancing economic viability, which strengthens its competitive position in the market.
- Strategic Partnership Opportunities: With the increasing demand for high-grade nickel and cobalt ores, First Atlantic Nickel is seeking to establish strategic partnerships with battery manufacturers and automakers to ensure future supply chain security, further solidifying its position in the market.
See More
TMC Reports Q1 2026 Financial Results with Strategic Developments
- Financial Overview: TMC reported a net loss of $20.6 million in Q1 2026, consistent with 2025, with a loss per share of $0.05, indicating ongoing profitability challenges that may affect investor confidence.
- Rising Expenses: Exploration and evaluation expenses surged from $9.5 million in 2025 to $13.3 million in 2026, while general and administrative expenses skyrocketed from $8.5 million to $20.7 million, primarily due to executive retention grants, reflecting increased operational and human resource pressures.
- Liquidity Position: As of March 31, 2026, TMC's liquidity stood at $164 million, including a $44 million undrawn credit facility, indicating strong liquidity but necessitating attention to future funding needs and potential financial strain.
- Strategic Partnership Progress: TMC signed a production agreement with Allseas, marking the completion and operation of the first commercial polymetallic nodule collection system, enhancing its market position, while NOAA confirmed compliance for the TMC USA project, further solidifying regulatory compliance and market trust.
See More
TMC Q1 2026 Earnings Call Insights
- Execution-Focused Strategy: CEO Gerard Barron emphasized that 2026 will be execution-focused, highlighting the signing of a production agreement with Allseas, which marks a significant step in advancing the first commercial polymetallic nodule collection system, potentially accelerating TMC's market positioning in deep-sea mining.
- Regulatory Progress: Barron noted that NOAA has determined TMC USA's application to be in full compliance, with expectations to receive the commercial recovery permit in Q1 next year, which will provide legal assurance for operations and facilitate project advancement.
- Financial Status Overview: CFO Craig Shesky reported a net loss of approximately $20.6 million for Q1 2026, with liquidity at around $164 million; despite the losses, the company maintains strong liquidity to support future operations and investments.
- Cost Optimization Potential: Management indicated that short-term cost reductions could be achieved through optimizations in energy use and offshore logistics, although specific figures were not provided, reflecting the company's proactive efforts to enhance operational efficiency.
See More
The Metals Company Reports Q1 2026 Earnings
- Earnings Report: The Metals Company reported a GAAP EPS of -$0.05 for Q1 2026, aligning with market expectations and indicating stability in the current economic environment.
- Liquidity Position: As of March 31, 2026, the company had approximately $164 million in available liquidity, demonstrating financial flexibility for operations and investments.
- Operating Cash Flow: The company utilized $0.6 million in cash for operations during the quarter ended March 31, 2026, reflecting challenges in cost control and resource allocation.
- Market Reaction: Following the signing of a deep-sea mining agreement with Allseas, the company's stock price surged, indicating positive market sentiment regarding its future growth potential.
See More
