This Deep-Sea Mining Stock Has Soared 500% in 2025. Here's 1 Reason Why Investors Are Diving In.

Core Insights - The Metals Company (TMC) has seen a significant stock increase of 520% year to date, positioning it among the top three mining stocks of the year [1] Company Overview - TMC is focused on deep-sea mining, specifically in the Clarion Clipperton Zone of the Pacific Ocean, to extract polymetallic nodules containing cobalt, copper, nickel, and manganese [2] - The company aims to process these nodules into battery-grade base metals for applications in electric vehicle batteries and power generation, with a focus on recyclability [2] Current Status and Challenges - TMC is currently in the exploration phase and has not yet generated revenue, lacking exploitation contracts from the International Seabed Authority (ISA) for commercial collection of nodules [3] - The ISA has not finalized a mining code, leaving TMC and similar companies in a state of uncertainty regarding operational permissions [3][6] Recent Developments - An executive order signed by President Trump in April 2025 aims to expedite permissions for deep-sea mining, providing TMC with an opportunity to apply for exploration licenses and a commercial recovery permit under the Deep Seabed Hard Mineral Resources Act (DSHMRA) [5] - This executive order has contributed to a significant rise in TMC's stock price, which at one point increased by over 800% in 2025 [7] Financial Considerations - TMC requires substantial funding to develop and commercialize its operations, with only $116 million in cash as of June 30, raising concerns about its market capitalization of $3.6 billion [8]