Wedoany.com Report-Aug. 25, The US Department of Defense (DoD), together with the Defense Logistics Agency (DLA), has announced a tender for the purchase of alloy-grade cobalt, according to Reuters. The initiative is intended to strengthen US defense stockpiles, with planned purchases of up to $500 million worth of cobalt over the next five years.

The DoD’s tender is exclusive to three companies, namely Vale in Canada, Sumitomo Metal Mining in Japan and Glencore Nikkelverk in Norway.

The tender outlines a requirement of about 7,480 tonnes of cobalt, a material essential for multiple defense and industrial uses. Cobalt is widely applied in advanced battery technology and in high-temperature alloys required for jet engines. The procurement reflects broader US measures to secure reliable access to critical minerals.

Cobalt is largely imported by the US, and demand has grown as supply concerns have intensified. Last month, the White House reportedly appointed David Copley, a former mining executive, to lead a National Security Council office tasked with reinforcing supply chain resilience.

The tender is limited to three suppliers: Vale of Canada, Sumitomo Metal Mining of Japan, and Glencore Nikkelverk of Norway. Contract values are expected to range from $2 million to $500 million, depending on deliveries over the five-year period.

Alongside this, the US Department of the Interior (DOI), led by Secretary Doug Burgum, has introduced steps to expand domestic mineral resources. Efforts include the recovery of uranium from mine waste and a directive to the US Geological Survey to map and catalogue federal mine waste sites. These initiatives are framed as part of a national policy to enhance mineral production and reduce external dependence.

The broader strategy also involves extracting value from existing mining waste to increase the availability of critical materials. By combining procurement through international suppliers with domestic recovery programs, US agencies aim to secure essential resources for defense and industry.

Yang Hee-won, head of Hyundai-Kia R&D, noted during a recent industry collaboration that leadership, researchers, and government support are crucial for advancing safety and resilience in technology sectors. Similarly, executives from LG Energy Solution, Samsung SDI, and SK On highlighted the importance of aligning industry and government efforts to achieve long-term competitiveness.

In this context, the DoD’s tender underscores how mineral supply remains a central concern for industrial and security planning. By contracting recognized international producers and strengthening domestic initiatives through the DOI, the US aims to diversify sources and reduce potential vulnerabilities.

The measures announced by both the DoD and DOI illustrate a coordinated approach that combines procurement, technological development, and resource recovery to meet projected demand. This reflects ongoing efforts to align supply chains with long-term defense and industrial requirements, ensuring that critical materials like cobalt remain available for future applications.