TMC Commends U.S. House of Representatives for Allocating Defense Funding to Assess the Feasibility of Domestic Nodule Refining Capacity

• As reported by the Wall Street Journal, the House version of the fiscal year 2025 National Defense Authorization Act (NDAA) calls for $2 million allocated to the Defense Department’s Industrial Base Policy Office to study the feasibility of developing domestic capacity to refine polymetallic nodule-derived intermediates to high-purity nickel, copper and cobalt products. The legislation also proposes to examine existing supply chains for such intermediates.
• In addition, TMC's U.S. subsidiary has an outstanding application seeking a $9 million grant under the Pentagon’s Defense Production Act Title III program for feasibility work on a domestic refinery for nodule-derived intermediate products.
• With TMC’s commercial-scale nodule collection from its NORI-D Area targeted to begin at the end of Q1 2026 and a binding memorandum of understanding in place with Pacific Metals Co. of Japan for primary processing, the prospect of refining the resulting NiCuCo intermediate product to high-purity products in the United States could bolster domestic production of clean energy, infrastructure and defense technologies.

NEW YORK, May 23, 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 the U.S. House of Representatives calling for financial support from the Defense Department’s Industrial Base Policy office to “assess the feasibility of improving domestic capabilities for refining polymetallic nodule-derived intermediates into high-purity nickel, cobalt sulfate, and copper.”

Led by the House Armed Services Committee, the proposed legislation would support the realization of nickel refining capacity in the United States, to build resilient supply chains and revitalize American manufacturing per Executive Order 14017. A wide variety of Congress members and former military officials have urged the Administration to consider polymetallic nodules as a component of its national critical mineral strategy.

TMC CEO and Chairman, Gerard Barron, commented: “This is a big step in the right direction for the United States towards securing a stable supply of responsibly-sourced critical minerals. The U.S. House of Representatives has, through the National Defense Authorization Act for fiscal year 2025, designated $2 million for feasibility work for developing domestic polymetallic nodule intermediate refining capacity to produce high-purity nickel, cobalt, and copper. TMC remains acutely focused on starting production through our capital-light approach utilizing existing assets, but this encouraging policy action lays the foundation for the U.S. to catch up to China in the critical minerals race and establish metal independence.”