Frequently Asked Questions (FAQs)
Please contact our team if you have any questions that aren’t covered here or would like to discuss your questions or feedback with Impossible Metals.
Market for Deep Sea Critical Minerals
The demand for nickel, cobalt, copper, and manganese, materials crucial for producing advanced technologies in defense, energy, and infrastructure, has skyrocketed. Projections from the World Bank indicate that demand for these metals will increase by 500% by 2050, raising concerns about their availability and sustainability on a global scale. Without deep-sea minerals, 388 new mines must be built by 2030 to provide the necessary minerals to meet this demand.
Recycling can be a part of the solution, as metals are highly reusable, but it is insufficient. A new electric vehicle (EV) won’t be scrapped for 10 to 15 years. Its battery pack, while no longer able to power a vehicle, can last 15 to 20 years and may find a second life by storing wind or solar energy before being recycled. The International Energy Agency forecasts that the secondary supply of batteries and the reuse of nickel will represent just 3% of total demand in 2030 and 10% in 2040. To help close the demand gap, mining for new metals will still be essential.
Proposals to reduce demand fall into two categories:
The first category is to reduce demand by reducing car dependence in wealthy nations, which sounds doable in theory but can have significant implications for GDP and the economy. For example, in the U.S., that could require the migration of 50% to 75% of the population from rural and low-density communities to medium-density communities to take advantage of cycling, biking, walking, and mass transit. This migration would impact hundreds of millions of Americans and require significant policy, urban, infrastructure, and transportation changes that could take decades to implement and bring their own challenges.
The second proposed solution would limit access to modern technology like air conditioning (AC) and electric vehicles (EVs) in developing countries like India and in Africa. While climate change affects the entire planet, poorer countries are more severely affected, and their need for AC to reduce heat stroke and improve daily life is already significant. When Harvard China Project researchers modeled future air conditioning demand, they found an enormous gap between current AC capacity (2.8 billion people live in the hottest parts of the world, but only 8% of them have home AC) and the AC capacity needed by 2050 to save lives. In addition, a World Bank study of 20 developing countries found that EVs would be an economic and environmental win for more than half of those countries. While it is essential to dig into how to reduce the overall demand for critical metals to attain net-zero goals, it’s clear that the solution needs to be more practical and humane.
While new battery chemistries are emerging, nickel and cobalt are likely to remain important for longer-range EVs and many non-battery uses.
Nickel and cobalt are used in many but not all battery chemistries. Today, they are mainly used in lithium, nickel, manganese, cobalt oxides (NMC), and lithium nickel, cobalt, aluminum, and oxides (NCA). Lithium iron phosphate batteries (LFP) are popular in China and do not use nickel or cobalt. However, LFP batteries are also significantly heavier, resulting in less range in an EV. Manganese-rich NMC could be a cheap alternative to LFP/LMFP, avoiding dependency on Chinese supply chains without sacrificing range. Cheaper, sustainably mined Cobalt from deep sea minerals would make high-voltage mid-nickel NMC an additional alternative. Nickel and cobalt are also used in many non-battery energy transition applications, including solar, wind, and nuclear power.
External industry analysts, such as Roland Berger, Benchmark Mineral Intelligence, etc., forecast that L(M)FP will account for around 35% of North American EV batteries in 2030. North American EVs will also use nickel-based (NMC) and iron-based (LFP) batteries. LFP is better for small pack sizes and cheaper vehicles, which are very popular in China. NMC has higher energy density and is best for long-range vehicles with bigger pack sizes.
LFP is primarily a Chinese technology today, so North America has no volume manufacturing. If you buy a car with Chinese batteries, you do not qualify for the Inflation Reduction Act (IRA)’s $7,500 tax rebate because they contain materials from a “foreign entity of concern.” For example, the lowest-cost Model 3 Teslas, which use LFP batteries currently do not qualify for the credit,but the long-range vehicles do qualify, making them cheaper on an after-tax basis than the LFP-based vehicles and offering almost 100 more miles of range. LFP also has a very low recycling value. NMC has large recycling values; if you factor in the end-of-life recycling value, NMC is cost-competitive.
Finally, while additional battery chemistries are being developed today, some of which will not require nickel and cobalt, they are unlikely to make a significant impact on climate goals in the next one to two decades. It typically takes 20 years after a new battery chemistry is invented before a Western automotive manufacturer deploys it at scale. Western automotive manufacturers need many years of samples from the volume production factory before the battery cells will be qualified.
For more details, see our blog post, “Inconvenient Facts About LFP Batteries”.
According to S&P Global, mining companies take an average of 23 years from discovery to production; in the US, it’s 29 years.
Deep sea minerals will significantly lower recovery costs compared to new land-based mines. Given the high ore grade, four metals in one ore, and low infrastructure costs, deep sea minerals extracted from polymetallic nodules will be the lowest cost of all forms of mining. In addition, the ocean seabed is the world’s largest source of nickel, cobalt, and manganese, and selective harvesting will have the lowest environmental impact. For more details, see this blog post, “Why Will Deep Sea Mining Be Less Expensive Than Traditional Land-Based Mining?”
Yes. The known reserves of Ni, Co, and Mn in the ocean are between 3x and 10x the known reserves on land. Our parallel fleet of underwater robots can collect substantial amounts of critical materials, and replication of a single project can increase productivity.
Yes, we estimate that our system will be 15x lower cost than the average nickel mine in 2024. See this blog post to learn more.
Yes. Existing land-based mines will continue to operate, but new land-based mines will not open after deep sea minerals ramp into production. This is because of the cost advantages of extracting deep sea minerals, the size of the resource, and the lower Environmental, Social, and Governance (ESG) impacts.
There are four potential sources of deep sea minerals: polymetallic nodules, cobalt-rich ferromanganese crusts, seafloor massive sulfides, and rare earth element muds.
Polymetallic Nodules (PMN) contain nickel, cobalt, copper, and manganese. These potato-sized rocks are found on the abyssal plains lying on the seabed sediment. They do not require cutting, blasting, or tunneling. This is the exclusive focus of Impossible Metals. Cobalt-rich Ferromanganese Crusts (CFC) mainly contain cobalt. They form on sediment-free rock surfaces around oceanic seamounts, ocean plateaus, and other elevated features. Seafloor Massive Sulfides (SMS) mainly contain copper, lead, zinc, and some gold and silver. They appear on and within the seafloor when mineralized water discharges from a hydrothermal vent. The hot, mineral-rich water precipitates and condenses when it meets cold seawater. Most proposed mining is focused on extinct hydrothermal vents. Rare Earth Element Muds (REEM) mainly contain rare earth elements in the seabed sediment.
71% of our planet’s surface area is oceans, and only 29% is land. We have mined on land since the Bronze Age, so the world’s oceans contain significantly more nickel, cobalt, and manganese reserves.
All of the world’s oceans contain deep sea minerals. The international seabed area, under ISA jurisdiction, has issued exploration licenses in the Clarion-Clipperton Zone (CCZ), the Indian Ocean, the Mid-Atlantic Ridge, and the Pacific Ocean.
Many countries contain deep sea minerals within their EEZs, such as the Cook Islands, Norway, Japan, Sweden, India, the Kingdom of Saudi Arabia, American Samoa, Papua New Guinea, Chile, the United States, Brazil, and China. See countries developing subsea minerals in their EEZs.
Deep Sea Mining & Other Industry Glossary
Abyssal plains = underwater plain on the deep ocean floor, usually found at depths between 3,000 and 6,000 meters.
Areas Beyond National Jurisdiction (ABNJ) = The formal term for the international seabed, beyond any country’s borders otherwise known as the ‘Area’ or the high seas.
AUV (Autonomous underwater vehicle) = self-guided underwater robots used for exploration, mapping, and, in the case of Impossible Metals, the selective harvesting of polymetallic nodules. These vehicles are battery-operated and operate without tethers, utilizing onboard sensors and AI to navigate and make collection decisions in real-time. They are central to minimizing environmental impact by avoiding direct contact with sediment or marine life.
BBNJ (Biodiversity Beyond National Jurisdiction) Treaty = also known as the High Seas Treaty or the Global Ocean Treaty, is a landmark international, legally binding instrument adopted by the United Nations on June 19, 2023. It aims to ensure the conservation and sustainable use of marine biodiversity in areas beyond national jurisdiction.
Biodiversity = biological diversity among and within plant and animal species in an environment.
Bulk carrier or bulker vessel = merchant ship specially designed to transport unpackaged bulk cargo such as nodules.
Bureau of Ocean Energy Management (BOEM) = a U.S. federal agency under the Department of the Interior that oversees the leasing and development of offshore energy and mineral resources on the Outer Continental Shelf. BOEM ensures that activities such as offshore oil, gas, wind, and mineral extraction are conducted responsibly, balancing energy needs with environmental protection.
CAGR (compound annual growth rate) = business, economics and investing term representing the mean annualized growth rate for compounding values over a given time period.
CCZ (Clarion-Clipperton Zone) = large area in the Pacific Ocean from Hawaii to Mexico.
Container ship or box ship = cargo ship that carries all of its load in truck-size intermodal containers.
Contractor = is a company, consortium, or state entity that has been officially licensed to explore or exploit mineral resources on the deep ocean floor, particularly in areas regulated by the International Seabed Authority (ISA) or within a country’s Exclusive Economic Zone (EEZ).
CFC (Cobalt-rich Ferromanganese Crusts) = ‘Crusts’ which form on sediment-free rock surfaces around oceanic seamounts, ocean plateaus, and other elevated features.
Critical Minerals or Metals (CM) = Copper, nickel, and cobalt which are essential components in many of today’s rapidly growing clean energy applications. Many governments maintain a list of critical minerals.
Deep Seabed Hard Mineral Resources Act (DSHMRA) = is a U.S. federal law passed in 1980 that establishes an legal framework for U.S. entities to explore for and recover hard mineral resources—specifically polymetallic nodules enriched in manganese, nickel, copper, and cobalt—from areas beyond national jurisdiction (the “Area”)
Department of the Interior (DOI) = a U.S. federal executive department responsible for managing the nation’s natural resources, public lands, and cultural heritage. It oversees agencies such as the National Park Service, Bureau of Land Management, and Bureau of Ocean Energy Management, playing a key role in conservation, energy development, and stewardship of federal lands and waters.
Dredging = bulk collection method involves machines that drag, vacuum, or scrape the seabed to collect polymetallic nodules and other mineral resources. This process typically involves disturbing large areas of sediment, which can create plumes, displace marine life, and damage sensitive ecosystems.
DP (Dynamic Positioning) = computer-controlled system to automatically maintain a vessel’s position and heading by using its own propellers and thrusters.
DSM (Deep Sea Mining) = process of extracting minerals from the deep sea..
ECS (Extended Continental Shelf) = area of the ocean which is part of a continental shelf that extends more than 200 nautical miles from the coast.
EEZ (Exclusive Economic Zone) = area of the ocean, generally extending 200 nautical miles beyond a nation’s territorial sea, within which a coastal nation has jurisdiction over both living and nonliving resources.
EIA (Environmental Impact Assessment) = series of baseline and technical studies, modeling, and analysis that aims to understand the receiving environment, the nature, and scale of impacts, identify mitigations, consult and liaise with regulators and stakeholders, interface engineering design and mine planning with environmental risks, assess optionality and weigh various alternatives. An EIA provides a formalized and transparent impact assessment that outlines how project pressures cause effects, how those effects work individually or in concert to cause impacts, and predicts the consequences of impacts in terms of their expected magnitude and duration.
EIS (Environmental Impact Statement) = tool for decision-making. It describes the positive and negative environmental effects of a proposed action.
EMMP (Environmental Management and Monitoring Plan) = is a comprehensive plan that outlines how a mining contractor will protect the marine environment before, during, and after deep sea mining operations. It is mandatory for any contractor applying for an exploitation license from the International Seabed Authority (ISA) or from a national government.
Eureka I, II, III. IV = Underwater robots (more formally called autonomous underwater vehicles, or AUVs) designed by Impossible metals for selective harvesting of polymetallic nodules from the ocean floor.
Eureka Collection System = The complete system for commercial mining of polymetallic nodules designed by Impossible Metals. This consists of the Eureka AUVs, SLARS, Vessel based media handling, Charing and battery swapping, Mainetance.
EV (electric vehicle) = vehicle that uses one or more electric motors for propulsion.
Exploitation license = a formal legal authorization that allows an entity to begin commercial extraction of mineral resources from the deep seabed. It follows an exploration license and is issued only when the contractor meets strict technical, financial, and environmental criteria. Also known as a ‘recovery permit’
Exploration License: a formal legal authorization that grants a company or government entity to
- Conduct geological, biological, and environmental surveys
- Collect small quantities of mineral samples
- Evaluate commercial mining potential & define the resource size & economic potential
- Develop an environmental baseline
- Design an Environmental Management and Monitoring Plan (EMMP)
It does not allow commercial-scale mining. That requires a separate exploitation license or recovery permit.
ISA (International Seabed Authority) = autonomous international organization that organizes and controls all mineral-resources-related activities in the Area for the benefit of humankind.
LARS (launch and recovery system) = a device that helps safely launch and recover autonomous underwater vehicles (AUVs) and remotely operated vehicles (ROVs) from a ship.
L(M)FP (Iron, manganese, phosphorus) = battery chemistry cathode
Megafauna = animals of a given area that can be seen with the unaided eye.
NCA (nickel, cobalt, aluminum) = battery chemistry cathode
NMC (nickel, manganese, cobalt) = battery chemistry cathode
National Oceanic and Atmospheric Administration (NOAA) = a U.S. federal agency within the Department of Commerce focused on understanding and managing the nation’s oceans, weather, climate, and coastal resources. NOAA conducts research, provides forecasts, monitors environmental conditions, and supports marine conservation to protect ecosystems and public safety.
Outer Continental Shelf Lands Act (OCSLA) = a U.S. law enacted in 1953 that governs the exploration and development of offshore mineral and energy resources, including oil, gas, and renewable energy, on the Outer Continental Shelf (OCS). It authorizes the federal government, primarily through the Department of the Interior, to lease areas of the OCS, regulate activities, and ensure environmental protection and resource conservation during offshore operations.
PMN (Polymetallic Nodules) = ‘nodules’ also known as manganese nodules, are mineral concretions on the ocean floor that contain valuable metals. See Wikipedia.
Prospecting = in mining is the first stage of the mineral resource discovery process. It involves searching for evidence of valuable minerals or metals in a specific area, usually through preliminary surveys and testing, before any drilling, excavation, or large-scale operations begin.
PSV (Production Support Vessel) = large surface ship that serves as the central facility for deep sea mining operations. PSVs are typically modified from dynamically positioned drillships used in the oil and gas industry. Their primary functions are to:
- Collect, gather, lift, and temporarily store polymetallic nodules
- Store, maintain and control the dredging tractor and riser system
- Dewater the nodules
- Provide power, control, and guidance to the subsea collector
- House the crew that monitors and runs the operations
The temporary storage of nodules only has capacity for a few days of storage. When full, a Shuttle Transport And Resupply Ship (STARS) is required to transfer the nodules to port.
Note: Impossible Metals does need PSV.
Regulator = a governmental or intergovernmental authority responsible for creating and enforcing the rules that govern mineral activities in the ocean, especially in areas beyond national jurisdiction. These regulators ensure that mining is done responsibly, sustainably, and legally, balancing economic interests with environmental protection. E.g. ISA, BOEM, NOAA, SBMA.
REEM (Rare Earth Element Muds) = ‘Muds’ mainly contain rare earth elements in the seabed sediment.
ROV (Remotely Operated Vehicle) = free-swimming submersible craft used to perform underwater observation, inspection and physical tasks. The vehicle is tethered to the vessel.
SBMA (Seabed Minerals Authority) = is the national regulatory agency of the Cook Islands responsible for managing, regulating, and monitoring activities related to the exploration and potential exploitation of seabed minerals in the country’s Exclusive Economic Zone (EEZ)—one of the largest in the world.
Selective Harvesting = Rather than scooping or vacuuming everything in sight, Eureka underwater robots identify and pick up individual nodules while avoiding sensitive habitats, visible organisms, or sediment. This approach minimizes disruption and improves sustainability.
Sediment Disturbance = This occurs when mining activities disturb the ocean floor, creating small sediment disturbance.
Sediment Plume = Large cloud of disturbed seabed sediment from deep sea mining operations. Impossible Metals’ AUVs hover above the seafloor, avoiding direct contact and significantly reducing this impact compared to traditional dredging and do not create enough sediment disturbance to form a plume.
SLARS (Smart Launching and Recovery System) = Impossible Metals technology which allows full autonomous operations of the LARS with a vessel without DP and in a wide range of sea states.
SMS (Seafloor Massive Sulfides) = ‘Vents’ appear on and within the seafloor when mineralized water discharges from a hydrothermal vent.
STARS (Shuttle Transport And Resupply Ship) = specialized ships with DP used to supply the mining Production Support Vessel (PSV). Key tasks performed are:
- Transfer of nodules from the PSV
- Transport of those nodules to the processing facility
- Transport of equipment, fuel and provisions to the PSV
- Transfer of personnel to and from the PSV per crew rotas
Note Impossible Metals does not need STARS.
TAM (Total addressable market) = metric that estimates the maximum revenue potential for a product or service if it were to capture 100% of a market.
Tailings: Waste materials from mineral processing, sometimes discharged into the ocean.
UNCLOS (United Nations Convention on the Law of the Sea) = established a comprehensive international legal framework to govern activities related to the global oceans.
USBL (ultra-short baseline) = method of underwater acoustic positioning and wireless communication as GPS and WiFi do not work underwater.
