The Metals Company didn't report any news today.
The United States is looking to form alliances with other nations to secure a supply of critical minerals for AI applications.
At this point, The Metals Company should remain a potential investment for those with high risk tolerances.
Starting the week on an inauspicious note, shares of TMC The Metals Company (NASDAQ: TMC) closed 9.7% lower yesterday, compared to their closing price at the end of last Friday's trading session. Today, though, they're driving in the other direction. As of 10:37 a.m. ET, shares of The Metals Company are up 14.7%.
However, those who suspect that the company reported something positive today may be surprised to find that it's not a company announcement driving the buying activity. Instead, the market's interest in the deep-sea mining company stems from a less direct factor.
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Bloomberg reported yesterday that the United States is seeking to forge alliances with eight other nations to fortify the national supply of critical minerals used in artificial intelligence (AI) technology.
While China lifted the export restrictions on certain critical minerals after a meeting between President Trump and President Xi in October, the U.S. is committed to reducing its reliance on the other nation.
Although President Trump had expressed interest in assisting the development of the deep-sea mining industry in April with the issuance of executive orders, The Metals Company still hasn't commenced commercial operations. With the U.S. now expressing renewed interest in securing its supply of critical minerals, investors may feel reinvigorated by the opportunity that The Metals Company stock provides.
In addition to copper (used in wiring found in data centers), The Metals Company seeks to produce cobalt, nickel, and manganese from deep-sea mining operations -- metals used in energy storage and semiconductor applications.
There's no denying that The Metlas Company stock offers a unique opportunity, as deep-sea mining for critical minerals is a relatively new industry. With the company still in the pre-revenue phase of its development, the stock should remain an option only for those with higher risk tolerances at this point.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.