On Sunday, world leaders arrived in Scotland for the U.N. Climate Change Conference.
For two weeks these leaders will discuss how they can limit global warming to 2 degrees Celsius.
The 2-degree goal will require drastic transitions to green tech like electric vehicles (EVs).
According to Wood Mackenzie, these transitions will result in massive demand for EV metals.
The world will require 130% more lithium than it’s projected to produce in 2030, and 167% more cobalt.
But opening additional mines to fill this demand comes with risks such as deforestation.
So, where will the world get these metals from?
One potential answer is…
A Massive Untapped Resource in the Ocean
There are regions of the ocean with massive quantities of mineral deposits called “nodules.”
Each of these nodules contains cobalt, copper and much more.
And the best part is there’s no heavy mining or drilling involved.
These nodules cover the ocean bed, and anyone can just pick them up.
According to a Nature Geoscience study, the ocean deposits of most metals are much larger than the deposits found on land.
Just take a look at the Clarion-Clipperton Zone. It’s a 1.7-million-square-mile region of the Pacific Ocean.
(Source: Mexico News Daily.)
There’s more manganese, nickel and cobalt in just this zone than all the deposits on land combined.
The Future of Sea-Bed Mining Is Closer Than You Think
Collecting these nodules isn’t some far-flung idea.
There are companies that are eager to tap into this resource.
That includes big names like Lockheed Martin and Nautilus Minerals.
These companies are conducting studies on how to tackle this problem.
The Metals Company and Allseas are already involved as well.
They’re modifying old oil drilling ships to collect these nodules. These ships are set to launch in 2022.
Trends Market Research expects this industry to grow at a compound annual growth rate of 37.1%.
At that rate, it will be a $15.3 billion industry by 2030.
What’s Next for Underwater Mining
The International Seabed Authority (ISA) has been studying this issue for over a decade.
The ISA was supposed to have regulations for companies ready by the end of 2020. But the pandemic delayed this process until 2022.
However, the ISA hasn’t been idle in this time.
It has issued permits to 30 companies to begin mining in several sites.
These sites currently act as the testing grounds for various extraction techniques.
The ISA has called a series of meetings for its 168 member countries in December.
The outcomes from these meetings will give us a better idea what’s next for this new industry.
And you can be sure we’ll be tracking these developments at Winning Investor Daily.
But if you don’t like waiting, check out Ian King’s Strategic Fortunes service. It gives you a way to invest in the future of EV metals today.
Regards,
Research Analyst, Strategic Fortunes
P.S. There’s an investment that allows anyone — not just wealthy investors — to secure shares in some of the most exciting private companies before they go public. To find out what it is, make sure you tune in for Ian’s upcoming webinar. Click here to reserve your spot now.
Morning Movers
From open till noon Eastern time.
IRhythm Technologies Inc. (Nasdaq: IRTC) is a digital health care company that provides electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias. It is up 43% after commenting on the Centers for Medicare and Medicaid Services (CMS) 2022 Medicare Physician Fee Schedule. IRhythm said it has been working with CMS submit cost data on long-term continuous ECG monitoring to establish fair and appropriate rates.
Criteo S.A. (Nasdaq: CRTO) is a French technology company that provides online marketing and monetization services. It is up 28% after reporting strong Q3 results with both an earnings and revenue beat thanks to the accelerated growth in its new products and solutions.
Veritiv Corp. (NYSE: VRTV) is a provider of packaging, publishing and hygiene products. It is up 27% after reporting record Q3 revenues and raising guidance for the rest of the year thanks to increased demand in its packaging segment.
Public Joint Stock Company Rosneft Oil Co. (OTC: OJSCY) is a Russian oil and gas company that is up 27% today after comments from the CEO stating that the technologies necessary for the green energy transition won’t be ready in time and that transitioning should be a more gradual process.
Bed Bath & Beyond Inc. (Nasdaq: BBBY), the home goods retailer, is up 21% today after announcing a partnership with Kroger to offer many of its most popular home and baby products to Kroger customers via Kroger.com, and eventually at a number of its grocery stores.
Glaukos Corp. (NYSE: GKOS) is an ophthalmic medical technology and pharmaceutical company that focuses on therapies for the treatment of glaucoma, corneal disorders and retinal diseases. It is up 18% after Centers for Medicare & Medicaid Services (CMS) published its final payment rates for 2022, with favorable rates for Glaukos products.
Prog Holdings Inc. (NYSE: PRG) is a provider of lease-purchase solutions to underserved and credit-challenged customers. It is up 15% after reporting Q3 earnings that came in higher than expected, and announcing a share repurchase program.
Owens & Minor Inc. (NYSE: OMI) is a medical and surgical gear manufacturer that is up 15% after beating Q3 earnings estimates thanks to increased demand for its products in medical facilities during the pandemic.
Figs Inc. (NYSE: FIGS) is a direct-to-consumer health care apparel and lifestyle brand. It is up 15% after announcing the date for its Q3 earnings release, and announcing the launch of a new platform that will allow shareholders to submit and upvote questions to management during earnings discussions.
Capri Holdings Ltd. (NYSE: CPRI), the parent company of Michael Kors, Versace and Jimmy Choo, is up 14% after exceeding all operational and earnings expectations for Q2 and raising its full-year outlook for 2022.
