Shares of The Metals Company (TMC) surged 12.01% in pre-market trading on Tuesday, continuing its upward momentum following a 45% gain on Monday. The dramatic rise comes amid reports that the Trump administration is considering an executive order to stockpile metals and rare earths found on the Pacific Ocean seabed.
According to a Financial Times report, the potential strategic reserve of polymetallic nodules is aimed at countering China's dominance in battery minerals and rare earth supply chains. This move could significantly benefit companies like TMC, which focuses on deep-sea mining operations. The news has also positively impacted other players in the sector, with MP Materials, a rare earths mining company, seeing its stock rise by 8.9% in pre-market trading.
The timing of this potential executive order aligns well with TMC's recent activities. In late March, the company applied for mining exploration licenses and commercial recovery permits in international waters under existing US legislation. This proactive approach, coupled with the possibility of government-backed demand for deep-sea metals, has fueled investor optimism, driving the stock's impressive rally.
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