U.S. Department of Interior Launches Historic Deep-Sea Mining Lease Process Following Impossible Metals Request
U.S. Department of Interior Launches Historic Deep-Sea Mining Lease Process Following Impossible Metals Request
WASHINGTON, D.C. - May 22, 2025 – The U.S. Department of the Interior announced Tuesday, May 21, 2025, that it is beginning the process of selling deep-sea mining leases after receiving a formal request from startup Impossible Metals. This marks the first action of its kind in more than 30 years, signaling a potential turning point in America's approach to critical mineral extraction and supply chain independence.
Did you know? In the deep sea, pressures can exceed 1,000 times the atmospheric pressure at sea level—more than enough to crush a human or submarine not specially designed to withstand it. At depths like the Mariana Trench (over 36,000 feet), every square inch experiences over 16,000 pounds of force. To survive, deep-sea creatures have evolved unique adaptations, such as flexible, pressure-resistant cell structures and the absence of gas-filled spaces like swim bladders. Engineers designing submersibles must use ultra-strong materials and spherical shapes to endure these crushing forces.
What Happened: A Historic Move Toward Deep-Sea Resource Extraction
The Interior Department's announcement follows a formal request submitted by California-based Impossible Metals in April 2025 to evaluate potential mineral lease sales in waters offshore American Samoa. The agency will now initiate a comprehensive multistep evaluation process through the Bureau of Ocean Energy Management (BOEM), including publication in the federal register, public feedback solicitation, National Environmental Policy Act review, and extensive stakeholder consultation.
Interior Secretary Doug Burgum expressed strong support for the initiative, stating: "Critical minerals are fundamental to strengthening our nation's resilience and safeguarding our national interests. By providing opportunities to responsibly access deep-sea mineral resources, we are supporting both American economic growth and national security."
The targeted area reportedly contains rich deposits of nickel, cobalt, copper, magnesium, and rare earth elements—materials crucial for electric vehicle batteries, renewable energy technologies, and clean energy infrastructure. This strategic move comes amid growing concerns about China's dominance over key mineral markets and follows President Trump's executive order last month directing NOAA to fast-track permits for ocean floor mining.
Impossible Metals, the company behind the request, has developed innovative underwater autonomous vehicles equipped with robotic claws and advanced AI technology.
Did you know? Polymetallic nodules are potato-sized lumps of valuable metals like manganese, nickel, cobalt, and copper that lie scattered across the deep ocean floor, particularly in areas like the Clarion-Clipperton Zone in the Pacific. Formed over millions of years through the slow accumulation of metal layers around a core—often a tiny fragment of shell or rock—these nodules represent a potential treasure trove for future mining. However, harvesting them poses serious environmental concerns, as it could disrupt delicate and little-understood deep-sea ecosystems.
These vehicles use computer vision to selectively collect polymetallic nodules from the ocean floor while identifying and avoiding nodules with visible marine life. The company successfully tested its Eureka II autonomous underwater vehicle in deep water in April 2024, claiming it was "the first deep-water dive by an autonomous vehicle designed specifically for deep-sea mineral harvesting."
Key Takeaways: Strategic Implications and Market Impact
Critical Mineral Supply Chain Security: The deep-sea mining initiative addresses America's vulnerability to foreign mineral dependencies, particularly China's control over cobalt processing and rare earth element markets. With global nickel demand for clean energy technologies projected to triple by 2035 according to the International Energy Agency, domestic deep-sea resources could provide crucial supply diversification.
Did you know that global nickel demand for clean energy technologies is projected to surge dramatically by 2035, with the International Energy Agency forecasting a staggering 40-fold increase in nickel needed for electric vehicles and energy storage by 2040? This remarkable shift will transform the nickel market, as batteries alone are expected to account for 41% of global nickel demand by 2030—up from just 7% in 2021—while clean energy sectors collectively will constitute more than half of all nickel consumption by 2040. The cumulative demand between 2022-2050 is projected to reach approximately 99 million tonnes, with electric vehicles requiring the lion's share at 73.5 million tonnes, followed by hydrogen electrolysers (20 million tonnes) and wind infrastructure (4 million tonnes), representing one of the most significant material redeployments in the ongoing global energy transition.
Economic and Employment Opportunities: Proponents estimate the industry could create approximately 20,000 offshore jobs plus additional opportunities in related industries. The deep-sea mining equipment market, valued at $811.9 million in 2020, is projected to reach $72.8 billion by 2030 with a compound annual growth rate of 61.4%.
Did you know that the global deep-sea mining equipment market is projected to experience explosive growth, with some analysts forecasting a remarkable 61.4% compound annual growth rate to reach over $72 billion by 2030 from its current valuation of approximately $1.6 billion? This rapidly emerging industry is being driven by increasing demand for critical minerals essential for electric vehicles and renewable energy technologies, the depletion of land-based mineral resources, and significant technological advancements in underwater robotics including Autonomous Underwater Vehicles (AUVs) and Remotely Operated Vehicles (ROVs), though the industry still faces considerable environmental concerns and regulatory challenges as it develops the specialized seabed mining crawlers and riser systems needed to extract valuable resources from ocean depths.
Environmental Opposition and Regulatory Challenges: The proposal faces significant environmental resistance. Over 30 countries, along with fisheries groups, environmental organizations, and technology companies, have called for a moratorium on seabed mining.
Did you know? A seabed mining moratorium is a temporary halt or ban on deep-sea mining activities, typically called for by scientists, environmental groups, or governments to allow more time for research and regulation. The goal is to prevent potentially irreversible harm to fragile deep-sea ecosystems before we fully understand the environmental impacts of mining for resources like polymetallic nodules. Many advocate for a moratorium until stronger international laws, scientific data, and conservation measures are in place to ensure responsible and sustainable use of the ocean floor.
American Samoa enacted its own moratorium in July 2024, citing threats to marine life and tuna fisheries central to its economy.
Technological Innovation: Impossible Metals claims its selective harvesting approach addresses environmental concerns by having "the lowest environmental impact and cost among land and deep-sea mining approaches." However, critics argue that any deep-sea mining technology would "by its nature remove the very substrate of life in and on the deep seafloor."
Regulatory Timeline: Despite the Interior Department's announcement, actual mining operations remain years away. The process requires extensive environmental review, public consultation, and regulatory approval. Industry experts predict commercial deep-sea mining could begin around 2028-2030, with initial projects likely to be "economically marginal" before potentially moving down the cost curve.
Deep Analysis: Balancing National Security with Environmental Stewardship
The Interior Department's decision to pursue deep-sea mining leases represents a convergence of geopolitical strategy, technological innovation, and environmental controversy that will define America's approach to critical mineral security for decades to come.
Strategic Necessity vs. Environmental Risk: The initiative emerges from a fundamental tension between America's need for supply chain independence and the potential for irreversible marine ecosystem damage. The Clarion-Clipperton Zone alone contains approximately 20% of land-based copper reserves, with higher mineral grades than many terrestrial deposits.
Did you know? In deep-sea biodiversity studies, scientists face the challenge of "dark taxa"—species that are known to exist through genetic data or environmental traces but have not yet been formally described or named. These mysterious organisms make up a significant portion of deep-sea life, yet remain largely invisible in traditional taxonomy. The deep ocean’s vastness and inaccessibility mean many of these creatures are discovered only through DNA sequencing, leaving researchers with fragments of information and no clear picture of what the organisms actually look like or how they live. This makes conserving deep-sea ecosystems even more complex.
Technological Differentiation: Impossible Metals' selective harvesting technology represents a potential breakthrough in reducing environmental impact compared to traditional "vacuum" collection methods. The company's autonomous underwater vehicles use buoyancy engines to hover above the seabed, employing AI and computer vision to avoid disturbing marine life.
Did you know? AI and computer vision are revolutionizing deep-sea mining by enabling more selective and environmentally conscious extraction. Using advanced algorithms and underwater imaging, these technologies can identify and map valuable resources like polymetallic nodules with high precision, helping to avoid unnecessary disruption of surrounding ecosystems. AI can also track marine life in real time, guiding mining equipment to minimize contact with vulnerable habitats. This tech-driven approach aims to make deep-sea mining more efficient while reducing its environmental footprint.
This approach could lower operational costs and environmental penalties by 30-40% compared to vacuum dredging systems, though unit throughput remains significantly lower.
Economic Viability Challenges: Current market conditions present challenges for deep-sea mining economics. Nickel prices have declined approximately 40% from 2022 peaks, and cobalt has returned below $17 per pound.
Did you know that while nickel prices have shown modest growth of just 1.42% in 2025, cobalt has experienced a dramatic 38.68% surge since January, largely triggered by the Democratic Republic of Congo's four-month export ban implemented in late February 2025? This striking contrast in mineral price trends has significant implications for deep-sea mining viability, as polymetallic nodules on the ocean floor contain both minerals in commercially significant quantities. Despite cobalt's recent rally, prices remain approximately 60% lower than their 2022 peak, and the market faces persistent oversupply challenges with global mine production having doubled from 140,000 to 290,000 metric tons between 2020 and 2024. The economic feasibility of deep-sea mining ventures depends heavily on these price fluctuations, with long-term projections suggesting the cobalt market may transition from surplus to deficit in the early 2030s, potentially enhancing the appeal of oceanic mineral extraction as terrestrial mining confronts increasing environmental and social constraints.
Deep-sea projects penciled at greater than $8 per pound nickel equivalent cash costs appear marginal at current prices unless environmental, social, and governance premiums or policy credits can be monetized.
Regulatory Fragmentation: The U.S. approach creates a parallel pathway to international governance through the Deep Seabed Hard Mineral Resources Act, as America is not a member of the International Seabed Authority.
Did you know? The International Seabed Authority (ISA) is the United Nations–mandated body responsible for regulating deep-sea mining in international waters, specifically the ocean floor beyond national jurisdictions, known as "the Area." Its role includes issuing exploration licenses, setting environmental standards, and ensuring that mineral resources are used for the benefit of all humanity, with special consideration for developing nations. The ISA also works to balance economic interests with the protection of deep-sea ecosystems, though its effectiveness and transparency are subjects of ongoing global debate.
This regulatory fragmentation raises concerns about potential trade retaliation and litigation risks, with experts predicting at least one National Environmental Policy Act lawsuit that could delay environmental impact statements by 12-18 months.
Global Competitive Landscape: The initiative positions America competitively against other nations pursuing deep-sea mining, including Norway's recent Seabed Minerals Act amendments and various companies operating in international waters. The Metals Company (NASDAQ: TMC), currently trading at $4.39, filed U.S. applications for international waters in April 2025, aiming for 2027 production start.
Indigenous and Cultural Concerns: Pacific island communities view deep-sea mining proposals as threats to cultural heritage and traditional ocean relationships. American Samoa's moratorium reflects broader concerns about self-determination and environmental justice, creating potential legal and political obstacles to implementation.
Did You Know: Fascinating Facts About Deep-Sea Mining
Ancient Formations: The polymetallic nodules targeted for deep-sea mining take millions of years to form, growing at rates of just millimeters per million years. These potato-shaped formations serve as habitats for unique deep-sea organisms, many of which remain undiscovered by science.
Pressure Extremes: Deep-sea mining operations occur at depths where pressure exceeds 300 times atmospheric pressure at sea level. The extreme conditions require specialized equipment and autonomous vehicles capable of operating in complete darkness thousands of meters below the ocean surface.
Battery Connection: A single electric vehicle battery requires approximately 17 pounds of lithium, 77 pounds of nickel, and 30 pounds of cobalt. With global electric vehicle sales projected to reach 40 million units annually by 2030, the demand for these deep-sea minerals continues to surge.
Biodiversity Hotspots: Deep-sea environments harbor extraordinary biodiversity, with scientists estimating that each deep-sea mining site could contain 30-40 species found nowhere else on Earth. The loss of these unique ecosystems could represent irreversible damage to global biodiversity.
Technology Investment: Impossible Metals has raised $25 million in equity funding plus grants and is currently seeking $100 million in Series B funding to advance its selective harvesting technology from Technology Readiness Level 6 to pilot proof-of-production status.
Economic Scale: A typical 25-square-kilometer deep-sea mining tract could contain approximately 4.9 million tons of nickel equivalent, representing potential revenues of billions of dollars at current mineral prices. However, initial capital expenditures for autonomous underwater vehicle fleets, support vessels, and onshore processing plants could exceed $1.8 billion.
Climate Connection: Proponents argue that deep-sea mining represents a necessary component of the clean energy transition, while critics contend that disturbing deep ocean environments could affect the ocean's capacity to absorb carbon dioxide and regulate global climate systems.
The Interior Department's historic announcement marks the beginning of what promises to be a complex, controversial, and potentially transformative chapter in America's resource extraction history, with implications extending far beyond mineral markets to encompass national security, environmental stewardship, and the future of sustainable technology development.