In a strategic move announced on August 21, 2025, the U.S. Department of Defense (DoD) launched a tender to purchase up to 7,500 tons of alloy-grade cobalt over the next five years, with a contract value estimated between US $2 million and $500 million depending on supply and market conditions.
This marks the first large-scale cobalt procurement by the Pentagon since the 1990s and forms part of a broader push to rebuild stockpiles of critical minerals. Eligible suppliers have been limited to firms in allied countries, including Vale of Canada, Sumitomo Metal Mining of Japan, and Glencore’s Nikkelverk refinery in Norway.
Cobalt plays a pivotal role in advanced military technologies, from high-temperature jet engine alloys to defense electronics, while also underpinning commercial applications such as batteries for electric vehicles
and grid storage. The Pentagon’s decision reflects concerns about over-reliance on vulnerable supply chains. Earlier disruptions in rare earth magnet exports from China—combined with rising global demand for battery metals—have underscored how strategic materials can become chokepoints in both industrial production and defense readiness. Stockpiling represents a shift from just-in-time sourcing toward deliberate supply security planning.
More than a procurement exercise, the tender reflects a strategic reclassification of cobalt as a national
security asset. By anchoring long-term contracts with allied producers, the U.S. is signaling its
determination to diversify away from risky sources and reduce exposure to geopolitical shocks. With
demand for cobalt expected to grow sharply in the coming decade, this initiative strengthens U.S. resilience
while also positioning the country to play a stronger role in shaping the global critical minerals landscape.