Critical minerals drive a boon for ship operators

Trump’s Executive Order could bring benefits for bulk carriers 

By Carly Fields

The oceans have long been central to global trade, but a recent directive from Washington is poised to transform them into a new frontier for mineral extraction, opening a potentially lucrative angle for the shipping industry. 

On April 24, 2025, President Donald Trump issued an Executive Order, titled, "Unleashing America's Offshore Critical Minerals and Resources”, signalling a decisive push to accelerate the development of seabed mineral resources. This strategic move aims not only to bolster the nation's supply of critical raw materials (CRMs) but also to diversify their upstream sources away from geopolitically sensitive land-based origins.

according to a viewpoint from Reed Smith.

Traditionally, the extraction of CRMs – essential for everything from renewable energy technologies to defence infrastructure – has been dominated by a handful of land-based mining nations, creating significant supply chain vulnerabilities. As Reed Smith highlights: "China currently produces over 80% of the world’s rare earth elements, which are key components of batteries and catalytic converters." Similarly, the Democratic Republic of the Congo supplies the lion's share of global cobalt. This concentration carries inherent risks, including trade conflicts, sanctions, and political unrest, underscoring the urgent need for alternative sources. Enter deep-sea mining (DSM), a method of extracting minerals like nickel, manganese, copper, and cobalt from the ocean floor. 

While still in its nascent stages, with small-scale equipment tests proving successful, the Executive Order is designed to kickstart its commercial viability, particularly in waters adjacent to the US and in collaboration with international allies. The order’s overarching goal is clear: "The Executive Order aims to establish the US as a global leader in seabed mineral exploration, development technologies, and mining; to diversify the upstream supply chain of CRMs away from land-based sources."

This ambitious directive sets a clear pathway for federal agencies, including the National Oceanic and Atmospheric Administration and the US Departments of State, Energy, and the Interior, to expedite permits, identify private sector interest, map priority seabed areas, and engage in international collaborations. But beyond the regulatory shifts, the tangible impact lies in the commercial opportunities it presents. For vessel owners, the call to action is immediate and multifaceted says Reed Smith, ushering in a new market for highly specialised ships and services. 

Shipping opportunities 

The most direct opportunity lies in the demand for vessels capable of supporting the core deep-sea mining operations. These will include ships equipped for exploration, the construction of subsea infrastructure, environmental monitoring, and, crucially, the actual extraction of minerals. Deep-sea mining involves robotic collector vehicles tethered to a mining vessel, performing tasks like vacuuming, plucking, or cutting and crushing mineral deposits. This is not a distant prospect; "Shipowners experienced in offshore energy, subsea work, or cable-laying are already well-placed to meet this demand by owning and operating or leasing such vessels to private mining companies or government-backed programs, securing valuable long-term contracts," notes Reed Smith. This suggests that existing players with relevant expertise can pivot quickly, leveraging their current fleet and skillsets.

Beyond the mining itself, the downstream transport of extracted minerals represents another significant avenue for profit. Once brought to the surface, these critical materials will need to be transported to onshore processing facilities.

The capital expenditure typically associated with new ventures might also be mitigated by the potential for vessel retrofitting. Rather than a wholesale investment in newbuilds, the industry can look to convert existing older bulk carriers, heavy-lift vessels, or cable-layers for DSM operations. This approach enables faster and cheaper market entry, allowing owners to adapt their current assets to meet the emerging demand without prohibitive upfront costs, according to Reed Smith.

Logistics angle

Furthermore, deep-sea mining projects necessitate robust offshore logistics: Given that mining sites will often be far from land, there will be a consistent and regular need to transport workers, equipment, and supplies.

– similar to the well-established operational models seen in the offshore oil and gas sector. This continuity offers a degree of familiarity and stability in an otherwise novel industry.

Finally, the burgeoning deep-sea mining sector is poised to foster stronger ties between shipowners and stakeholders across the energy and minerals industries. This synergy could lead to opportunities for joint ventures, mergers, and acquisitions, creating integrated service providers capable of handling the entire spectrum of DSM operations, from exploration to processing, notes Reed Smith.

However, while the Executive Order has been met with enthusiasm from proponents like The Metals Company (TMC), a Canadian DSM firm which publicly stated it "marks America’s return to leadership in deep seabed minerals”, and Australian Strategic Materials (ASM), some industry analysts and environmental groups remain cautious. Sceptics point to the lack of existing US infrastructure for large-scale CRM production and the potential for market forces to overshadow regulatory changes. Environmental organisations, meanwhile, have voiced strong concerns about the irreversible harm to marine ecosystems. 

However, the intent of the Executive Order is undeniable, and its potential to establish the US as a global leader in seabed mineral exploration opens a window of opportunity for vessel owners and operators prepared to dip a toe into these new, deep waters.