New sources of abundant nickel supply might be hiding in a surprising place: the ocean floor.
What’s happening:
- The Metals Company (NASDAQ: TMC) has announced that nickel that was mined from the Pacific Ocean has been verified as battery grade by Geneva based inspection and certification company SGS
Why it matters:
- Deep sea mining has been highly controversial, with many policy makers having concerns around the environmental risks of conducting mining in the ocean and the largely unknown consequences of disturbing the ocean floor
By the numbers:
- The reserves of metals such as nickel and cobalt on the ocean floor are enormous, with an estimated value of between $8-$16 trillion dollars
- The Metals Company believes their undeveloped nickel projects that require deep sea mining could produce enough nickel, copper and cobalt to help manufacture 280M electric vehicles
Going deeper:
- Nickel has become increasingly more relevant with the continued acceleration of lithium-ion battery production, which has spurred a race for major battery manufacturers such as Samsung SDI and leading electric vehicle manufacturers such as Tesla (NASDAQ: TSLA) to secure sources of domestic nickel supply
The fine print:
- It is still unclear what the regulations around deep sea mining will be globally, as the International Seabed Authority is still yet to ultimately make a decision on official policies for seafloor extraction and mining
