The Metals Company is developing technology to harvest metal-rich nodules from the ocean floor, aiming to power the electric vehicle revolution. With no revenue yet, the company is awaiting regulatory approval to begin mining. A recent U.S. permit application may offer an alternative path forward for the company.

The potential for harvesting polymetallic nodules from the Pacific Ocean’s Clarion Clipperton Zone is huge, containing essential materials for EV batteries. The company aims to refine these nodules into battery-grade materials with a lighter environmental footprint than traditional mining methods.

TMC’s financials show no revenue and a net loss, indicating the high costs of building underwater mining infrastructure. Although TMC holds exploration rights in the CCZ, it lacks permission to start harvesting the nodules pending regulatory approval from the International Seabed Authority.

TMC has filed a permit application under a U.S. law to mine in American waters, potentially bypassing ISA regulations. This move, if approved, could be a major breakthrough for the company, allowing it to operate in waters off-limits to the rest of the world, albeit with legal risks.

Investing in TMC involves significant risks and uncertainties due to its lack of revenue and regulatory hurdles. For aggressive investors with long-term horizons, a small stake might make sense as part of a diversified portfolio, pending tangible progress like a confirmed mining license.

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Read more at Yahoo Finance: The Ocean Floor Could Power EVs. Will This Company Reap the Rewards?