U.S. May Buy $1B Critical Minerals, TMC Stock Soars on Hopes

Retail Traders Eye New Resource Opportunities as China-US Trade Tensions Rise

  • The United States is planning to purchase up to $1 billion in critical minerals to build a strategic stockpile.
  • Planned acquisitions include approximately $500 million in cobalt, $245 million in antimony, and $100 million in tantalum.
  • The move aims to reduce U.S. dependence on China for key minerals amid ongoing trade tensions.
  • The Metals Company has drawn significant investor interest due to its seabed mining operations for manganese, cobalt, copper, and nickel.
  • The U.S. government has shown increased support for domestic and deep-sea mining, with faster permit approvals and investments in several mining companies.

The United States government is reportedly preparing to purchase up to $1 billion worth of critical minerals for national stockpiling. This effort comes as officials seek to secure supplies of key materials essential for technology and defense, and to lessen reliance on imports from China.

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According to the Financial Times, filings from the Pentagon’s Defense Logistics Agency indicate that the planned purchases cover about $500 million in cobalt, $245 million in antimony, and $100 million in tantalum. These minerals are used in a variety of high-tech applications, including batteries and electronics.

The initiative follows China’s recent restrictions on exporting rare earth technology, which further escalated trade disputes between the two countries. In response, President Donald Trump has threatened additional tariffs on Chinese goods. The increased demand for domestic mineral resources has fueled speculation that the government could engage with companies like The Metals Company (TMC), which focuses on deep-sea mining.

TMC explores the ocean floor for polymetallic nodules—rock formations rich in manganese, cobalt, copper, and nickel—essential elements in making lithium-ion batteries for electric vehicles and electronics. The Financial Times reported that the Trump administration is considering stockpiling these nodules and has already moved to expedite the permitting process for seabed mining. The Metals Company reportedly applied for such a permit earlier this year.

Recent reports have also noted that high-level administration officials attended an investor meeting for TMC in August, adding to speculation regarding a potential government stake. This follows other government investments in companies such as Lithium Americas and Trilogy Metals. TMC shares have risen sharply this year, reflecting increased interest in critical mineral and deep-sea mining opportunities.

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