In an episode of NASDAQ Trade Talks, host Jill Malandrino sat down with top industry leaders to discuss the growing demand for critical metals essential to electrification, renewable energy, AI, and military applications. 

Among the experts was Samir Kapadia, CEO of India Index and managing principal at Vogel Group, who provided insights into the strategic importance of metals and the role the U.S. must play in securing these resources.

Transitioning from Energy Independence to Metal Independence

Craig Shesky, Chief Financial Officer of NASDAQ-listed The Metals Company (TMC), kicked off the discussion by highlighting the transition from energy independence to metal independence. Shesky pointed out that just as the 20th century was defined by the geopolitics of oil and gas, the 21st century will be shaped by the geopolitics of metals. TMC is at the forefront of this shift, focusing on developing the world’s largest estimated undeveloped source of battery metals through a resource known as polymetallic nodules.

These nodules, found on the seafloor, are rich in nickel, copper, cobalt, and manganese—key metals for the electrification of vehicles and other clean energy applications. Shesky noted that TMC’s resources alone could provide enough materials to electrify every vehicle in the U.S. However, the U.S. currently relies heavily on imports for these metals, particularly from China, which dominates the processing and refining sector.

The Role of Critical Ocean Minerals

Scott Vinent, President of Critical Ocean Minerals Research Center, further elaborated on the potential of deep-sea nodules. He emphasized that deep-sea mining offers a sustainable and less environmentally damaging alternative to traditional land-based mining. The ability to source these critical metals from international waters presents a unique opportunity for the U.S. and its allies to reduce dependence on China.

Vinent also addressed the misinformation spread by certain environmental groups, which has slowed capital formation in this emerging industry. He stressed the importance of basing decisions on scientific data rather than unfounded claims, noting that deep-sea mining could be a win-win for both the environment and humanity.

U.S. Government Support and Bipartisan Interest

Samir Kapadia highlighted the growing bipartisan support in Washington for securing critical minerals. He pointed out that the topic, once considered "sleepy," has gained significant attention in recent years due to the recognition of its importance for national security and economic competitiveness. The U.S. Department of Defense, in particular, has taken a robust interest in addressing this challenge, recognizing the strategic necessity of securing critical minerals.

Kapadia noted that the U.S. is currently behind in the race for deep-sea mining, with China investing heavily in this area. China has secured multiple contracts and conducted numerous voyages to collect deep-sea nodules, positioning itself as a leader in the field. In contrast, the U.S. has yet to ratify the UN Convention on the Law of the Sea, limiting its ability to fully participate in international efforts to exploit these resources.

The Path Forward: Private-Public Partnerships and Technological Innovation

The panelists agreed that a private-public partnership is essential for the U.S. to catch up in the critical minerals race. Kapadia emphasized that the U.S. has the research and technological capabilities to lead in this area, but political will and funding are necessary to unlock the potential of deep-sea mining.

Shesky added that while building new processing facilities and refineries will take time, the U.S. can start by leveraging existing infrastructure in allied countries like Japan. He also highlighted the importance of a diversified approach to sourcing critical minerals, including recycling lithium-ion batteries and developing seafloor resources.

Conclusion: Securing a Strategic Future

As the world moves toward electrification and renewable energy, the demand for critical metals will only increase. The U.S. faces a crucial decision: invest in the infrastructure and technology needed to secure these resources or risk falling behind China in yet another strategic industry. Samir Kapadia and the other experts on the panel made it clear that while the challenges are significant, the opportunities for innovation and leadership are within reach. The U.S. must act now to ensure that it remains competitive in the global race for critical metals.

To watch the entire episode and hear Samir’s insights: Click Here