Why TMC The Metals Company Stock Crashed Hard Last Week—And What Comes Next

TMC The Metals Company just got hammered. Here’s why investors bolted—and whether the bleeding stops here.

The short-seller effect

When a high-profile bear case drops, markets listen. TMC got caught in the crosshairs of a brutal report questioning its seabed mining viability. Cue the panic selling.

Regulatory headwinds intensify

Deep-sea mining permits face growing global scrutiny. Last week’s political pushback added fuel to the fire—because nothing thrills shareholders like bureaucratic limbo.

Commodities play or pipe dream?

TMC’s entire thesis hinges on underwater riches. But with copper prices wobbling and ESG funds fleeing, the ‘next frontier’ narrative took a serious hit. (Bonus jab: Another ‘disruptive’ mining stock learning that fundamentals eventually matter.)

Now what? Either this becomes a buying opportunity… or proof that some moonshots belong on the ocean floor.

Image source: Getty Images.

TMC stock sank on China export news

News hit on July 28 that the TRUMP administration had lifted license requirements that prevented artificial intelligence (AI) processors and semiconductor manufacturing equipment from being sold to China. The move came as part of an effort to advance negotiations for a trade agreement with China. Notably, the U.S. is making continued access to China's rare earth minerals a key pillar of what it's aiming to receive in a trade deal -- and the dynamic has substantial implications for TMC stock.

Despite the big pullback, TMC stock is still up 424% across 2025's trading -- and the importance that the Trump administration has placed on improving the United States' mineral sourcing capabilities has been central to the rally. A trade agreement between the U.S. and China has the potential to weaken the company's growth outlook, but there's still a lot of uncertainty as to how things will play out on that front.

What's next for TMC?

In April, President Donald Trump signed an executive order to accelerate permitting processes needed to advance seabed mining in the U.S., and TMC submitted several permit applications just a few days later. While a trade agreement with China could take some of the urgency out of paving the way for TMC and other players in the seabed mining space to scale their operations, there's a good chance that improving domestic mineral sourcing capabilities will continue to be a national priority.