Deep-sea mining firm Impossible Metals announced on Tuesday that it has formally requested U.S. federal officials to conduct a commercial auction for access to valuable deposits of nickel, cobalt, and other critical minerals located off the coast of American Samoa.

The waters surrounding the Pacific Ocean territory are believed to house substantial quantities of potato-shaped rocks called polymetallic nodules, which are rich in essential materials for electric vehicles and electronics.

Impossible Metals, a privately held company, has submitted the request to the U.S. Department of the Interior’s Bureau of Ocean Energy Management, the entity responsible for overseeing mineral deposits in federal waters. The proposal seeks to initiate a competitive lease process for the nodules in American Samoa.

A spokesperson from the Bureau of Ocean Energy Management confirmed the receipt of the request and stated that a decision on whether to proceed with a lease sale would be made by May 23. The agency has not conducted a competitive lease sale since 1991.

If the Bureau decides to move forward, the request will undergo a public comment period before any auction takes place.

Proponents of deep-sea mining argue that it could reduce the necessity for large-scale mining operations on land, which are often met with resistance from local communities. Critics, however, emphasize the need for further research to assess the potential impact of deep-sea mining on marine ecosystems.

Impossible Metals, based in California, has developed a robotic device equipped with a large claw and artificial intelligence technology to differentiate between nodules and marine life during the mining process.

While any country has the authority to permit deep-sea mining within its territorial waters extending up to 200 nautical miles from the coast, companies operating in international waters typically require approval from the International Seabed Authority (ISA). Notably, the United States has not ratified the United Nations Convention on the Law of the Sea, which established the ISA.

Reports suggest that the White House is considering an executive order that would enable mining companies seeking to exploit resources in international waters to bypass the International Seabed Authority.

(Source: Reuters – Reporting by Ernest Scheyder; Editing by Sandra Maler)