The US Department of Defense (DoD), alongside the Defense Logistics Agency (DLA), has issued a tender for the procurement of alloy-grade cobalt, reported Reuters.
This initiative comes as the US seeks to enhance its defence stockpiles with up to $500m worth of cobalt over the next five years.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The procurement aligns with broader efforts to secure critical mineral supplies.
The tender specifies a requirement of approximately 7,480 tonnes (t) of cobalt, a metal integral to various defence and industrial applications including battery technology and high-temperature alloys for jet engines.
The search for cobalt, predominantly imported by the US, has intensified following China’s decision to restrict rare earth exports.
This led to a significant downturn in rare-earth magnet exports in June and subsequent production halts at some automotive companies.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLast month, the White House reportedly appointed a former mining executive, David Copley, to lead a National Security Council office dedicated to supply chain resilience.
Notably, the DoD’s tender is exclusive to three companies: Vale in Canada, Sumitomo Metal Mining in Japan and Glencore Nikkelverk in Norway.
The potential contract value ranges from $2m to $500m for the five-year period.
Meanwhile, the US Department of the Interior (DOI), under Secretary Doug Burgum, has taken “decisive” steps to extract critical minerals from mine waste.
The DOI’s efforts include prioritising uranium recovery and directing the US Geological Survey to map and catalogue federal mine waste sites.
This strategy is part of President Trump’s executive order aimed at bolstering US mineral production, reducing foreign dependence and ensuring national security.
