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– The facility would initially process 200,000 metric tons per year
– The goal is to be operational before Donald Trump leaves office
– Companies refuse to disclose if they are in talks for funding with the US government
– Seabeds are considered a source of minerals; they raise environmental concerns
(By Ernest Scheyder and Melanie Burton)
Mining company Glomar Minerals and Australian firm Cobalt Blue Holdings COB.AX announced on Monday plans to build a refinery in the United States to process critical minerals extracted from the floor of the Pacific Ocean within three years.
This initiative comes as there is increasing interest in exploiting the planet’s seabeds for reserves of nickel, manganese, copper, and other essential minerals used in electronics, weapons, and various consumer goods, although this practice has drawn criticism from environmental advocates.
The demand for these minerals is expected to rise in the coming years, prompting Washington, Tokyo, and other governments to seek new and alternative sources to counter Beijing’s dominance in the minerals industry.
Glomar and Cobalt Blue aim to select a US site for the refinery by June and start commercial production before President Donald Trump’s term ends in 2029.
To achieve this, the partners will need funding for the facility, which is expected to cost less than $500 million and initially process 200,000 metric tons per year, with room for expansion.
Shares of Cobalt Blue, based in North Sydney, Australia, rose by over 7% on Monday morning at the Australian Stock Exchange.
The companies have declined to discuss the commercial terms of their partnership and confirm if they are in talks with the US government for financing. No customers have signed any supply contracts yet.
“Deep-sea minerals are game-changers and redefine the US dependency on essential minerals, much like how shale oil and gas reshaped global energy geopolitics,” said Robbie Diamond, executive director of Glomar, to Reuters.
Rival company The Metals Company TMC.N stated last week that they were in talks to lease land in Texas for their own refinery, expected to produce 12 million metric tons per year. However, the project’s success hinges on Trump administration financing.
TECHNOLOGY COULD BOOST THE INDUSTRY
Cobalt Blue, which is developing a cobalt mine and refinery in Australia, will provide its technology to separate at least five minerals from polymetallic nodules.
While extracting minerals from deep-sea nodules poses technical and engineering challenges, processing these nodules is equally difficult, and there are no commercial nodule refineries in operation. Both companies are essentially betting that Cobalt Blue’s technology can help kickstart a new industry.
“Polymetallic nodules offer the opportunity to provide multiple essential minerals from a single resource stream,” stated Andrew Tong, CEO of Cobalt Blue.
Founded in 2025, Glomar holds exploration leases in the Clarion-Clipperton Zone of the Pacific, previously partially owned by aerospace giant Lockheed Martin LMT.N. Glomar is “looking to expand its resource base,” said Diamond, without providing details.
INTERNATIONAL TENSIONS
The refinery projects come amid growing geopolitical tensions over deep-sea mining. In January, Donald Trump announced plans to expedite permits for companies seeking to mine in international waters.
The International Seabed Authority (ISA) – established by the United Nations Convention on the Law of the Sea, which the US has not ratified – has been working for years on mining regulations but failed to finalize them at its recent meeting. Trump’s decision in January aims to bypass the ISA. The Metals Company has requested Trump to issue its international permit. Glomar has not disclosed if they made a similar request to the Trump administration, although they have not officially applied.
