- The Responsible Use of Seafloor Resources Act (RUSRA) calls for U.S. support for ‘responsible polymetallic nodule collection’ and the use of federal funding to establish domestic infrastructure to refine nodules into critical minerals for the energy transition and national defense.
- The legislation comes as American and allied auto and battery makers struggle to secure supplies of critical battery metals that comply with guidelines for incentives under the Inflation Reduction Act, while metals demand for infrastructure and development continues to grow.
- The bill is endorsed by a coalition of leaders across the offshore energy industry, marine mineral exploration, and global research centers.
NEW YORK - March 13, 2024 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest estimated undeveloped source of critical battery metals, today welcomed the introduction of legislation by members of the House of Representatives calling for the U.S. to “support international governance of seafloor resource exploration and responsible polymetallic nodule collection by allied partners” and to “provide financial, diplomatic, or other forms of support for seafloor nodule collection, processing and refining.”
Sponsors of the bill, entitled the Responsible Use of Seafloor Resources Act (RUSRA), find that the “United States is falling behind in competitiveness within supply chains for critical defense and clean energy technologies”, and recognize that “the collection of seafloor nodules is integral to ensuring the United States does not continue its over-dependence" on adversarial nations.
Gerard Barron, Chairman and CEO of The Metals Company, said, “With commercial deep-sea nodule operations expected to begin soon, Congressional action to lay the foundation for processing and refining this remarkable resource is a game-changer. Additionally, we eagerly await the forthcoming Pentagon report on nodules as directed by the House Armed Services Committee. The Pentagon’s ability and willingness to support a feasibility study for a domestic refinery could help establish mineral independence for the U.S. in nickel, cobalt and manganese. The rising wave of support within Congress gives me confidence that there are multiple pathways for the country to support and potentially fund allied supply of nodule-derived critical minerals.”
The bill, introduced by Representatives Carol Miller (R-WV) and John Joyce (R-PA), notes: “Investing in the development of mineral resources and processing infrastructure quantitatively proven to reduce ESG impacts, such as seafloor nodules, is integral to ensuring the raw materials that underpin our domestic industrial base and transition to clean energy do not have adverse planetary impacts.”
In addition to TMC, the bill is endorsed by the National Ocean Industries Association, the Breakthrough Institute, the Critical Ocean Minerals Research Center, Deep Reach Technology, Kingston Process Metallurgy Inc., Global Seabed Resources NV, Ocean Minerals LLC, Odyssey Marine Exploration, Inc. and Moana Minerals.
Over recent years, TMC has welcomed letters from congressional leaders including the House Armed Services Committee as well as former military leaders urging the Biden Administration to assess domestic processing of seafloor polymetallic nodules as a means to secure key energy transition metals and “close national security vulnerabilities.” In March of 2022, TMC Chairman and CEO Gerard Barron wrote to the Senate Energy and Natural Resources Committee, noting, “It is a geological reality that there are insufficient U.S. reserves of nickel, cobalt, and manganese to support lithium-ion battery production at scale, and that recycling will not be able to meet demand in the mid-term. TMC can provide access to enough in situ resource to fully electrify the U.S. passenger fleet (280 million EVs).”
In July of 2022, Secretary Granholm of the US Department of Energy advised, "For nickel and certain other minerals, such as manganese and cobalt, the presently known U.S. reserves and known resources fall short of satisfying projected domestic demand to meet decarbonization goals. For nickel specifically, Russia’s footprint in the nickel market and the subsequent price spikes related to the Russia-Ukraine conflict have reinforced the importance of establishing a strong domestic supply, processing, and refining base for economic development and national security. "
The newly introduced Responsible Use of Seafloor Resources Act aims to ready the United States for the commercial availability of seafloor nodules, an abundant source of critical minerals.
About The Metals Company
The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metals commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga.
