The United States Antimony Corporation (USAC) has been awarded a contract worth up to $245m by the US Defense Logistics Agency (DLA) to supply antimony metal ingots for the national defence stockpile over the next five years.
This indefinite delivery indefinite quantity (IDIQ) agreement follows extensive negotiations concluded this year.
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Antimony, a critical component in military applications such as munitions and batteries has been identified as a strategic vulnerability in the US industrial base.
The USAC operates the only two antimony smelters in North America, which have been processing the metal for decades.
The contract renews its collaboration with the Department of Defense and the DLA. According to the USAC, this partnership has strengthened significantly since late 2024.
USAC chairman and CEO Gary Evans said: “It is incredibly meaningful for all our employees to play such a strategic role in strengthening our nation’s defence readiness and having the knowledge, expertise and history that USAC can and will deliver under our contractual obligations.
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By GlobalData“This is the kind of knowledge that is only gained through decades of execution and know-how. USAC has some of the most experienced antimony chemists/metallurgists and other professionals on its team in the global landscape.
“To put this in proper context, we have successfully won a sole-sourced long-term contract from the US Government for approximately $245m, while our total reported revenues for 2024 were $14.9m.”
The USAC is expected to deliver the initial orders under the contract this week.
The company said that its smelting facilities are equipped to meet the government’s specifications for antimony metal ingots.
It is also increasing its supply of antimony ore from global sources and developing its mineral acreage in Alaska and Montana.
Its recent mining operations in Alaska have revealed high-grade antimony deposits, which are anticipated to enhance domestic production and supply chain efficiency.
However, the USAC expressed doubt about the quality of antimony ores controlled by other sources, noting that these alternatives may not meet US military standards.
The new contract aligns with broader efforts by the US Government to strengthen domestic supply chains for strategic materials and reduce reliance on foreign sources, notably China, reported Reuters.
In May this year, the USAC executed a definitive agreement with WSP USA to provide engineering and construction services to enhance smelting operations at Thompson Falls, Montana.
