CNBC
There are billions of tons and billions of dollars’ worth of critical minerals including nickel, copper, cobalt and manganese lying at the bottom of the seafloor. These metals are vital to electric vehicle batteries and the clean energy transition, and they are found in abundance in a patch of the Pacific Ocean known as the Clarion-Clipperton Zone.
But extracting these metals via deep-sea mining has become a lightning rod for global controversy, as many fear the potential ecological disruptions it could cause in a part of our planet that remains largely unexplored. What’s more, international regulations for deep-sea mining have yet to be finalized, and the United Nations-affiliated regulatory agency in charge, the International Seabed Authority, or ISA, recently missed a key deadline to do so.
Now, the ISA must accept mining applications in the absence of regulations. The Metals Company has announced that it’s planning to submit its application next summer and begin exploitation in 2025, leaving many concerned about the potential implications.
“We know so very, very little about how the deep sea functions, but we know it’s fragile. It’s very sensitive to disturbance,” said Jessica Battle, who leads the World Wildlife Fund’s No Deep Seabed Mining Initiative.
But Gerard Barron, CEO of The Metals Company, contends that we need to compare the potential impacts of deep-sea mining to the known harms that come from terrestrial mining, such as the deforestation stemming from nickel mining in Indonesia and the child labor found in Congolese cobalt mines.
“You know, we’re not suggesting that this is a zero-impact activity, but what we are suggesting is that the impacts are a fraction compared to the land-based alternatives,” Barron said.
Untapped potential
Between 2020 and 2030, battery demand for nickel is set to increase by a factor of around 20, manganese demand is projected to rise about eightfold, and cobalt battery demand is expected to quadruple, according to Benchmark Mineral Intelligence, a company focused on tracking the metals integral to the energy transition.
Nickel, copper, cobalt and manganese are found in abundance on the seafloor, in the form of polymetallic nodules, which are globular concentrations of minerals that cover up to 70% of the seafloor in certain areas.
In the Clarion-Clipperton Zone, “they estimate there’s more than 20 billion tonnes of nodules in the area,” Barron said. “When it comes to nickel, they estimate there’s around 270 million tonnes.”
For comparison, the world produced about 3.3 million metric tons, or tonnes, of nickel last year. The Metals Company thinks the nickel market could benefit most from deep-sea mining, both because the mineral is integral to energy dense lithium-ion batteries, and because the ramp-up of nickel mining in Indonesia is causing massive deforestation in the country’s rainforests, which are vital carbon sinks.
“What I am absolutely convinced of is that we can slow down or maybe even stop the growth in rainforest nickel,” Barron said.
One area where The Metals Company holds an exploration license, called NORI, is ranked as having the largest undeveloped nickel deposit in the world and encompasses nearly 29,000 square miles of seafloor. Though that’s only about 0.02% of the entire seabed, the company says this resource, combined with another project area where the company has an exploration contract, contain enough nickel, copper, cobalt and manganese to power about 280 million EVs — that’s about the total number of cars (gas and electric) in operation in the U.S. today.
Last year, The Metals Company commissioned Benchmark Mineral Intelligence to conduct a life-cycle analysis that modeled the environmental impact of collecting nickel, cobalt and copper from the seafloor and then processing these minerals on land in Texas.
The analysis showed that The Metals Company’s proposed NORI-D project performed better than land-based mining and processing in the majority of impact categories measured, including global warming potential, which was generally 54%-70% lower. Deep-sea mining avoids the emissions associated with blasting, as well as sulfidic tailings, a waste material that can contaminate groundwater.
“If these projects go ahead in the way that is being described and targeted today, it could actually show some significant benefit,” said Andrew Miller, COO of Benchmark Mineral Intelligence.
But there are potential impacts that were not captured by Benchmark’s lifecycle analysis, including possible damage to deep-sea ecosystems and biodiversity — issues of great concern to the many advocacy organizations and companies that have lined up against deep-sea mining.
Great unknowns
A few years ago, the World Wildlife Fund released a business statement calling for a moratorium on deep-sea mining. Major tech companies Google and Samsung, as well as automakers BMW, Volkswagen, Volvo, Renault and Rivian have since signed on.
“Scientists are projecting it will take decades before we know enough about the deep sea to make those informed decisions, to not jeopardize and destroy something before we actually really know what it will do for us,” said Battle from the WWF.
Although Barron contends that the Clarion-Clipperton Zone, where The Metals Company plans to mine, has been explored much more thoroughly than other areas of the deep sea, he admits that scientists are still discovering a lot about the area.
“Reports suggest that there may be between 5,000 and 8,000 species that have been yet to be identified or that are still being discovered,” Barron acknowledges.
