March 30
The Metals Company Are Skyrocketing Today
KEY POINTS
- President Biden is considering invoking the Defense Production Act for EVs.
NASDAQ: TMC
TMC the metals company Inc.
Market Cap
$214M
Today's Change
(8.00%) $0.07
Current Price
$0.94<--------------
Price as of August 5, 2022, 4:00 p.m. ET
Rumor has it there's a tailwind coming that's going to benefit this start-up.
What happened
The
Dow Jones Industrial Averageand
S&P 500are losing ground today, but shares of
The Metals Company(
TMC8.00%)are soaring in the other direction. No, the company hasn't reported any news that is driving the stock higher. Instead, it seems that speculation is growing that President Biden is weighing whether or not he should invoke the Defense Production Act, and investors in the seabed mining company are taking notice.
As of 2:02 p.m. ET, shares of The Metals Company have soared 24%.<-----
52wk Range
$0.79 - $15.39
Naturally, upon hearing this news, investors look toward U.S. companies that specialize in the production of minerals used in EV batteries such as lithium, cobalt, manganese, and nickel. The Metals Company falls squarely into this category since it owns what it characterizes as the "largest undeveloped nickel project in the world." But it's not only nickel that The Metals Company is focused on collecting from polymetallic nodules on the seafloor; the company also plans to produce manganese, copper, and cobalt. In fact, The Metals Company estimates that it owns mineral resources with the potential to be used in 280 million EVs.
Now what
Should President Biden end up invoking the Defense Production Act, it should be a tailwind for the company, but it's important to recognize that it will be some time before the company commences mineral-production operations. The rapid rise in The Metals Company's stock today seems a little overdone, but for patient growth investors, however, The Metals Company is an EV-related stock that's worth following.