Korea Zinc Invests $85 Million in TMC to Strengthen U.S. Critical Metals Supply Chain

The strategic alliance positions the South Korean company as a major shareholder in The Metals Company and paves the way for future collaboration on processing and cathode materials manufacturing in the U.S., independent of China.

The Metals Company, a leading explorer of critical metals from deep-sea polymetallic nodules, announced today a strategic investment of approximately $85.2 million from Korea Zinc, a global leader in non-ferrous metal refining and precursor cathode active material (pCAM) technology.

The private placement, expected to close on June 26, 2025, includes the purchase of 19.6 million common shares at the last market closing price of $4.34 per share and warrants for an additional 6.9 million shares at an exercise price of $7.00, with a three-year term. Upon closing, Korea Zinc will become one of TMC’s largest strategic shareholders, holding approximately 5% of the company’s outstanding shares.

Beyond capital, the deal signals a long-term strategic alignment. Korea Zinc is currently evaluating a bulk sample of polymetallic nodules provided by TMC USA, under an existing letter of intent, to assess intermediate processing and refining pathways. The companies are exploring the possibility of jointly developing refining and pCAM production capacity in the United States, building a vertically integrated critical minerals supply chain outside of China.

“This is more than just capital—it’s a shared vision and commitment to building a resilient and secure U.S. supply chain for energy, defense, and manufacturing,” said Gerard Barron, Chairman and CEO of The Metals Company. “If we receive a commercial recovery permit, TMC USA could become a reliable, low-impact domestic source of four key critical metals. Korea Zinc is arguably the only company outside China with the capability to convert our materials into the metal products required in the U.S.”

The investment significantly boosts TMC’s financial position, bringing its pro forma cash balance to nearly $120 million. This enables the company and its partner Allseas to continue preparing the Hidden Gem production system, in anticipation of securing the first-ever U.S. commercial recovery permit for deep-sea mining.

Korea Zinc’s CEO, Yun B. Choi, expressed optimism about the long-term demand for nickel and copper:

“Our Troika Drive strategy is centered on exactly this vision. We believe TMC has the potential to become one of the most competitive nickel and copper producers globally. This partnership offers us a unique platform to build a U.S.-based, China-independent nickel supply chain.”

The investment comes at a pivotal time for TMC, as the company works with the National Oceanic and Atmospheric Administration (NOAA) on its commercial recovery permit application under the Deep Seabed Hard Mineral Resources Act (DSHMRA). In April 2025, former President Trump issued an Executive Order aimed at fast-tracking U.S. seabed mining permits and investment. Shortly after, TMC submitted the first-ever commercial recovery permit application and two exploration license applications under the act.

A Pre-Feasibility Study (PFS) is expected in the third quarter of 2025, which will further outline the commercial potential of TMC’s polymetallic nodule resources.