Decreasing Reliance on China, Congress to Fund U.S. Deep-Sea Mining Project

The US Congress is pushing the Department of Defense to review its capability for deep-sea mining on its own soil in order to reduce its reliance on China for key minerals. At the same time, Congress will provide funding for a project aimed at kickstarting the US deep-sea mining industry.

According to a draft document reported by The Wall Street Journal on Thursday, the House Armed Services Committee has directed the Pentagon to invest $2 million in a feasibility study, which will collaborate with an entity experienced in refining key minerals and producing battery-grade metals.

The US Congress has also tasked the Pentagon with providing a detailed plan on how the US can acquire and process key minerals.

During this process, the Department of Defense will explore the feasibility of refining deep-sea minerals on US soil. However, this process will only begin after the annual defense budget is signed into law later this year.

Moreover, both the Senate and the House will need to vote on the budget before it becomes law, meaning that funding for the industry may not be seen as early as 2025.

Deep-sea mining involves extracting ore containing large amounts of nickel, manganese, and cobalt from depths of thousands of feet underwater, and processing them to obtain mineral resources. These three elements form the perfect mineral combination required for manufacturing electric vehicle batteries. However, due to high extraction costs and a lack of research, deep-sea mining has been controversial, with opposition from environmental organizations.

Furthermore, the application of deep-sea minerals in the defense sector is extensive and crucial, including missile technology, aerospace components, magnets, and radar systems.

With increasing provocations from the Chinese Communist Party against the US and its allies, the threat to the US is growing. Washington is now focusing on diversifying the supply chain for critical minerals, with lawmakers increasingly concerned about achieving mineral independence.

Members from both parties in Congress are showing growing support for deep-sea mining as a way to counter China’s dominance in the field of processing critical minerals. Washington is increasingly worried about China controlling the extraction and production of key minerals.

On March 12, Republican Representatives Carol Miller and John Joyce submitted the Responsible Use of Seafloor Resources Act to Congress, aiming to promote the development and funding of deep-sea mining in the US. The bill specifically proposes creating a processing industry domestically and legalizing and regulating deep-sea mining in international waters.

In December last year, over 30 Republican members of Congress wrote to US Defense Secretary Lloyd Austin, urging the Department of Defense to ensure that “China (the CCP) does not unabashedly control deep-sea assets” and to support the US industry.

Lawmakers pointed out that the vast majority of global supply chains for critical mineral resources (including nickel, cobalt, lithium, manganese, zinc, and other rare earth minerals) are dominated by China, accounting for 85% to 95%. China also dominates the processing capabilities to transform these raw materials into finished products crucial for US weapon systems.

During a confirmation hearing in December, Kurt Campbell, who was then the US Deputy Secretary of State for Indo-Pacific Affairs, stated that he would prioritize strategic threats posed by China and persuade the Senate to approve the United Nations Convention on the Law of the Sea to promote national interest in deep-sea mining.

Members of the International Seabed Authority (ISA) will hold a meeting in Kingston, Jamaica in July to discuss the final steps of deep-sea mining regulations, which will determine the parameters for legally conducting deep-sea mining in international waters.

If these mining regulations can be completed by the summer of this year, it will set a precedent and legal foundation for the industry. Currently, the US is not a member of the International Seabed Authority but will participate as an observer in the meeting.