The U.S. Department of Defense is spending up to $1 billion to build a larger stockpile of critical minerals. The plan, as reported by the Financial Times, aims to secure materials needed for defense and tech production as China tightens control of global supply.
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The Pentagon’s Defense Logistics Agency (DLA) is looking to buy metals such as cobalt, antimony, tantalum, and scandium. These materials are key for equipment like fighter jets, radar systems, and electric vehicles. The DLA has already issued public filings showing new contracts and requests for supplies.
Expanding the National Stockpile
The U.S. is increasing purchases after China set new export rules on rare earths and related technologies. In response, President Donald Trump said the U.S. would add a 100% tariff on Chinese imports. He also postponed a meeting with China’s President Xi Jinping.
According to the FT report, the Pentagon’s plan includes up to $500 million for cobalt, $245 million for antimony from U.S. Antimony Corporation (UAMY), $100 million for tantalum, and $45 million for scandium from Rio Tinto (RIO) and APL Engineered Materials. However, market experts note that the volumes the Pentagon wants may exceed what the U.S. can currently produce or import. Cristina Belda of Argus Media claimed that many consider the targets “unrealistic” within five years.
Global Supply Strain and Rising Prices
As China cuts exports, prices for several metals have climbed. Germanium and antimony trioxide have seen sharp gains, while carmakers continue to face tight rare earth supplies. The push comes under the One Big Beautiful Bill Act, a spending plan that sets aside $7.5 billion for critical minerals. That includes $2 billion to grow the national defense stockpile and $5 billion for new investments in supply chains. The Pentagon will also use $500 million to back credit programs for private projects.
The DLA’s total stockpile was valued at $1.3 billion in 2023. These assets can only be used during war or when national defense requires it.
A Long-Term Effort
For now, the U.S. goal is to build new supply lines outside China. Yet the process may take time. The Pentagon must find reliable mining and refining partners, and the market for some of these minerals remains small. Still, the effort signals a long-term shift in resource planning. It may also benefit companies like U.S. Antimony Corporation and Rio Tinto, which could see steady government demand.
In summary, the Pentagon’s approach reflects how vital these materials are to both national security and industrial growth.
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