Korea Zinc Invests $85M in TMC to Bypass China Metals Supply

The Metals Company (TMC) announced a strategic $85.2 million investment from South Korean refiner Korea Zinc, which will acquire 19.6 million common shares at $4.34 each, representing about a 5% stake in TMC. The deal includes a three-year warrant for Korea Zinc to purchase an additional 6.9 million shares at $7 each, as well as participation rights to maintain its ownership percentage in future equity offerings. This partnership aims to develop a vertically integrated supply chain for critical minerals such as nickel, cobalt, copper, and manganese, essential for U.S. energy, defense, and infrastructure sectors, reducing dependence on China. The collaboration follows an accelerated regulatory process for TMC's commercial seabed mining permit, spurred by a 2025 executive order from President Trump to fast-track seabed mining projects. Korea Zinc will work with TMC’s U.S. subsidiary to process polymetallic nodules into refined metals and precursor cathode active materials, supporting domestic manufacturing capacity. Following the investment, TMC's stock surged significantly, and the company expects to release a pre-feasibility study later in 2025.