US Plans $500m Cobalt Procurement to Strengthen Defense Mineral Stockpiles
US Targets $500m Cobalt Purchase for Defense Supply Chain Amid China’s Mineral Restrictions
The United States is moving to secure its supply of critical minerals, with the Department of Defense (DoD) announcing plans to procure up to $500 million worth of cobalt for its defense stockpiles.
The initiative comes as Washington intensifies efforts to reduce reliance on China’s near-total control of the critical minerals sector.
China’s Export Restrictions Spark Urgency
The global supply chain for rare earths and other strategic minerals has come under pressure following China’s recent export restrictions.
In June, China’s rare earth magnet exports plunged by 75%, forcing some automakers to suspend production.
To counter such vulnerabilities, President Donald Trump in March invoked emergency powers to boost domestic production of critical minerals.
The White House also appointed former mining executive David Copley in July to lead a National Security Council office dedicated to supply chain resilience.
According to a tender document released by the DoD and the Defense Logistics Agency (DLA), the US aims to purchase approximately 7,480 tonnes of alloy-grade cobalt over the next five years.
The purchase value could range from $2 million to $500 million, depending on supply and pricing.
Cobalt is an essential component in:
Rechargeable batteries
Nickel superalloys for high-temperature sections of jet engines and industrial gas turbines
Other critical defense and industrial applications
Currently, the US imports most of its cobalt, underscoring its supply chain vulnerability.
Limited Supplier Pool
The tender revealed that offers are being sought from only three qualified suppliers:
Vale (Canada)
Sumitomo Metal Mining (Japan)
Glencore Nikkelverk (Norway)
This restricted supplier pool highlights both the scarcity of secure cobalt sources and Washington’s push to build more diversified and reliable supply lines.
