This Mining Stock Is Up 385% in 2025. 1 Reason This Could Be Just the Beginning.

The world wants more data centers and electric cars. To build them, it needs materials like copper, nickel, cobalt, and manganese. Most of these metals come from mines that not only tear through forests and leave toxic tailings, but are also very expensive to build and maintain.

TMC The Metals Company (NASDAQ: TMC) is pitching a different way to obtain these metals. In simple terms, it wants to vacuum rocks that contain these metals ("nodules") off the seafloor of the Pacific Ocean.

Excitement about the potential for this company helped boost the stock as much as 854% in 2025; however, the mining stock is down about 49% from all-time highs hit in mid-October. For long-term investors, the underlying idea behind this company could be reason enough to buy this dip.

Image source: The Metals Company.

TMC's chance at massive value hinges on one permit

The strongest argument supporting TMC's future growth is the combined net value of about $23.6 billion of the metals it expects to extract.

In August 2025, the company published two technical assessments that assigned that multibillion-dollar value to nodules in its exploratory area. Since the company is still only valued at about $2 billion, that project value gives its dreams some real economic backing.

On top of that, TMC ended its third quarter with about $115 million in cash, which should give a couple of years of runway with its current cash burn rate.

The catch, of course, is that TMC does not have regulatory approval to mine the area under its exploratory control. Indeed, although it's been making progress on that front, the concrete steps needed to finally obtain that license are somewhat opaque at this moment.

If TMC can get through the regulatory process with a valid license to mine the seafloor for nodules, TMC's 385% gain so far in 2025 will be a prologue to something much bigger. Investors who are willing to make that bet could be rewarded, although be warned: This speculative stock will likely get bumpier until the road to mining is clear.

Steven Porrello 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.