Imagine diving into the Pacific Ocean’s depths, not to see coral reefs or look for sunken pirate treasure, but to gather metal-dense rocks containing materials that can power the electric vehicle (EV) revolution.

That, in a nutshell, is the bold vision of The Metals Company (TMC -1.18%), a Vancouver-based company aiming to vacuum polymetallic nodules from the seafloor. With a stock that had soared 430% in 2025 as of market close July 31, TMC has caught the eyes of investors betting on a future of green energy. But with no revenue, mounting losses, and a sea of risks, is this materials stock worth diving into? Let’s explore.

What does The Metals Company do?

TMC isn’t your typical mining stock. The company’s core mission is to harvest polymetallic nodules from a remote stretch of Pacific Ocean known as the Clarion Clipperton Zone (CCZ). These lumpy, fist-sized seafloor stones are loaded with nickel, copper, cobalt, and manganese, all essential ingredients in everything from electric vehicle batteries to solar panels.

On land, these rare earth metals are mined and processed in carbon-heavy ways, which ironically undercut the clean-tech future many are destined to be part of. TMC wants to flip the script. Instead of digging holes in the earth, it wants to scoop metal-rich nodules from the seabed and refine them into battery-grade materials, possibly with a lighter environmental footprint.

The potential for TMC’s mining operations is huge. As Henry Sanderson points out in his book Volt Rush: The Winners and Losers in the Race to Go Green, the deep sea holds more nickel, cobalt, and possibly other rare earth metals than all the world’s land-based reserves combined. The CCZ alone is believed to contain some 21 billion metric tons of nodules — enough raw material to not only shake China’s grip on battery metals but supercharge the EV revolution for decades, if the materials can be gathered and refined.

A big vision, but zero revenue

But let’s not sugarcoat it: TMC is nowhere near harvesting nodules at a commercial scale. The company reported zero revenue in the first quarter of 2025, paired with a net loss of about $20.6 million. That loss widened from $16.1 million in the quarter before. It turns out that building an underwater mining infrastructure from scratch isn’t going to be cheap.

Or quick. As of writing, TMC still doesn’t have the green light to mine commercially in the CCZ. Although it holds exploration rights across two massive patches there, it doesn’t yet have permission to start harvesting the goods. That authority rests with the International Seabed Authority (ISA), a United Nations-backed body that still hasn’t finalized the regulatory playbook that companies like TMC need to operate.

But there’s a plot twist with the ISA: The U.S. never ratified the treaty that made the agency. While 169 nations and the European Union formally recognize the agency’s authority, the U.S. isn’t one of them. True, it does acknowledge parts of the treaty as international law, but technically, it’s not bound by the ISA’s rulebook. This means that if national interest comes into play — say, securing domestic access to critical minerals — the U.S. could try to go its own way. That would give companies like TMC a potential fast track to start operating in the CCZ.

This is exactly the door that TMC is trying to walk through. In April 2025, the company filed a permit application under a decades-old U.S. law just days after President Donald Trump signed a U.S. executive order renewing interest in offshore critical minerals. If TMC’s application is approved, it could mean mining under American jurisdiction in waters considered off-limits to the rest of the world. It’s a long shot, legally speaking, and could breach international norms, but it would be a major breakthrough for a company with no revenue.

A long-term wager with caveats

TMC is what I’d call a moonshot (or, maybe a deep-sea Hail Mary) — it’s a big idea with big risks and potentially big payoffs. If the permits come through and the tech scales, today’s price could look like a bargain. After all, a $2.65 billion market cap could look small compared to the multitrillion-dollar demand for battery metals that’s expected over the next few decades. If TMC becomes even a minor supplier in that chain, its top-line growth could dwarf what investors are paying today.

But if the ISA blocks its permit, or if U.S. jurisdiction doesn’t hold up to legal scrutiny, or if other things turn out in ways not the best for the company, TMC could keep burning cash with no clear path to revenue.

That’s a lot of “ifs.” Clearly, this isn’t a stock for the risk-averse. For aggressive investors with long-term horizons, a small stake might make sense as part of a diversified portfolio. But I would wait for tangible progress, like a confirmed mining license, before scaling up exposure.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fluence Energy. The Motley Fool has a disclosure policy.