Green Minerals Deepens Stake in Pacific's Mineral Wealth with Extended MoU

Green Minerals AS has extended its Memorandum of Understanding (MoU) for a license to explore marine minerals in the Clarion-Clipperton Zone (CCZ), a vast stretch of the Pacific Ocean teeming with polymetallic nodules. The agreement, now extended to 2027, positions the Norwegian firm to tap into a resource base estimated at over 200 million metric tons of critical minerals like nickel, cobalt, manganese, and copper—key inputs for electric vehicle batteries and renewable energy systems. This strategic move underscores the company’s ambition to become a cornerstone supplier of minerals for the global green energy transition while navigating regulatory and environmental hurdles.

The CCZ: A Treasure Trove of Critical Minerals

The CCZ, spanning an area roughly half the size of the contiguous U.S., is one of the world’s most mineral-rich regions. Its nodules contain more nickel, cobalt, and manganese than all terrestrial reserves combined, according to the U.S. Geological Survey. For Green Minerals, securing this license extension is a bid to capitalize on surging demand for these materials. Electric vehicle (EV) manufacturers alone require 30 times more lithium, 7 times more nickel, and 6 times more cobalt by 2030 compared to 2020 levels, per the International Energy Agency. By prioritizing seabed resources, Green Minerals aims to reduce reliance on terrestrial mining—a practice often linked to environmental degradation and geopolitical tensions.

Strategic Partnerships and Accelerated Timelines

The MoU involves a collaboration with an unnamed “competent and renowned international license holder,” a partnership that has already accelerated Green Minerals’ timeline. Originally targeting license holder status by 2024, the firm now expects to achieve this milestone a year earlier. The alliance likely leverages the partner’s technical expertise and regulatory experience, critical for navigating the complex international framework governing deep-sea mining.

The International Seabed Authority (ISA), which regulates seabed activities in international waters, has yet to finalize commercial mining regulations, though negotiations are intensifying. Green Minerals’ extension until 2027 suggests confidence that the ISA will finalize rules by 2025, as previously targeted, though delays are likely. The company remains on track to launch its first exploration cruise in 2026, with plans to deliver its first ore by the late 2020s.

Risks and Challenges

Despite the strategic advantages, Green Minerals faces significant hurdles. Environmental concerns loom large: deep-sea mining risks disrupting fragile ecosystems, including undiscovered species and seabed habitats. Critics argue that sediment plumes from mining could irreversibly damage biodiversity, prompting calls for a global moratorium. Meanwhile, regulatory uncertainty persists. The ISA’s delayed rulebook and domestic licensing delays in Norway—where the company’s first exploration permits are pending—add to execution risks.

Investors also face market volatility. Green Minerals’ stock has declined by 35.86% year-to-date (YTD) as of April 2025, reflecting skepticism over regulatory timelines and technical feasibility. Competitors like The Metals Company (TSXV: TEA) and DeepGreen (now part of Vulcan Energy Resources) have also struggled with valuation pressures amid these challenges.

Investment Implications

Green Minerals’ extended MoU solidifies its position as a front-runner in the race to commercialize seabed mining. Key catalysts for investors include:
1. Regulatory clarity: Finalization of ISA rules by 2025 or 2026 would unlock commercial mining.
2. Exploration results: Data from its 2026 cruise could validate resource estimates and refine production costs.
3. Strategic partnerships: Collaborations with license holders and tech providers may reduce execution risks.

The firm’s focus aligns with EU and U.S. strategic goals to secure domestic critical mineral supplies, reducing reliance on China. With the CCZ’s vast resources, Green Minerals could supply materials for ~10 million EV batteries annually at scale—a compelling value proposition for automakers and governments.

Conclusion

Green Minerals’ MoU extension is a bold bet on the future of critical mineral supply chains. While environmental and regulatory risks remain significant, the firm’s early foothold in the CCZ positions it to capitalize on a $1.5 trillion EV battery market by 2030. With 200+ Mt of nodules under its license and accelerated timelines, the company is well-placed—if regulations permit—to become a key player in the deep-sea mining sector. Investors should monitor ISA progress and exploration outcomes closely, as these will determine whether Green Minerals’ gamble pays off or sinks beneath regulatory waves.

Source: International Energy Agency (IEA)