DeepGreen, Developer of World’s Largest Estimated Resource of Battery Metals for EV, to Combine with SOAC. DeepGreen Metals Inc., a developer of lower-impact battery metals from unattached seafloor polymetallic nodules, has announced that it has entered into a definitive business combination agreement with Sustainable Opportunities Acquisition Corporation (NYSE: SOAC), a special purpose acquisition company with a dedicated ESG focus and deep operational and capital market capabilities in the energy and resource sectors.
The transaction represents a pro forma equity value of US$2.9 billion (assuming no redemptions) for the combined company, which will be renamed “TMC the metals company Inc.” and operate as The Metals Company upon closing.
Responsibly Sourcing Battery Metals to Address Looming Critical Shortage for EV Supply Chain
DeepGreen is developing a new, scalable source of EV battery metals in the form of polymetallic nodules found unattached on the seafloor in the Pacific Ocean. The estimated resource on the seafloor in the exploration contract areas held by the company’s subsidiaries is sufficient for 280 million EVs – a quarter of the global passenger car fleet.
The development of this resource offers an abundant, low-cost supply of critical raw materials for EV batteries and wiring including nickel, cobalt, copper and manganese, with a lower lifecycle ESG impact than conventional mining. Ensuring this critical supply of battery metals is essential to the transition from internal combustion engines to EVs, which faces the following risks:
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🔋 A slump in discovery of new metal deposits is widely expected to lead to shortages in key
metals such as nickel and copper from 2024-2025 onwards;
🔋 Rising raw materials prices risk undermining EV manufacturers’ efforts to drive down the
cost of EV batteries necessary for mass adoption;
🔋 Like fossil fuel extraction, conventional metals extraction comes at a steep cost to people
and the planet, leading to vast deforestation in some of the most biodiverse areas on the planet.
This is generating the world’s largest industrial waste stream and gigatons of emissions, poisoning ecosystems and people’s health, and driving potential labor exploitation including child labor.
The combined company’s ambition is to become the world’s largest developer and producer of EV battery metals through a responsible approach with the lowest lifecycle ESG impact and low production cost.
Scott Leonard, CEO of SOAC:
“Sourcing battery metals is the biggest hurdle facing the clean energy transition, and the pipeline of new mining projects on land is insufficient to meet rising demand
“We looked at over 100 companies, many of them in the EV and renewable energy space. DeepGreen stands above the rest. It offers a real, scalable solution to the raw materials problem, at a low production cost and with a significant reduction in the ESG footprint of metals. Assuming full-scale production, we expect The Metals Company to be among the lowest cost nickel producers in the world.
“We are convinced that The Metals Company is the ultimate answer to our thorough
search for meaningful ESG impacts combined with tremendous financial upside.”
Gerard Barron, DeepGreen Chairman and CEO, said:
We are excited to partner with SOAC, an ESG-driven team that does not shy away from tough problems.
“The reality is that the clean energy transition is not possible without taking billions of tons of metal from the planet. Seafloor nodules offer a way to dramatically reduce the environmental bill of this extraction. We are getting into this industry with a deep commitment to ocean health and a clear stop date in mind.”
“The plan is simple: produce better metals to supply the EV transition, while building up enough
metal stock to stop extracting from the planet and enable society to live off recycled metals.”
✔️ Transaction combines the first ESG-focused SPAC with a developer of the world’s largest
and highest-grade estimated source of electric vehicle (EV) battery metals that are
expected to be produced at low cost with dramatically reduced social and environmental
impact
✔️ Pro forma equity value of the combined company is expected to be approximately US$2.9
billion. Upon closing, the combined company will operate as The Metals Company and is
expected to be listed under the ticker TMC
✔️ The combined company is expected to have approximately US$570 million in cash,
assuming no redemptions, as part of the business combination, facilitating plans for The
Metals Company to start commercial production of battery metals as soon as 2024
✔️ The transaction includes an upsized US$330 million fully committed common stock
Private Investment in Public Equity (“PIPE”) at US$10.00 per share, anchored by an
international consortium of strategic and institutional investors, including Allseas, adding
to the list of existing strategic investors such as Maersk Supply Service and Glencore
DeepGreen, Developer of the World’s Largest Estimated Resource of Battery Metals for
EVs, to Combine with Sustainable Opportunities Acquisition Corporation, DALLAS, Texas & VANCOUVER, British Columbia
