The US Division of Protection (DOD) has abruptly canceled a earlier tender to buy as much as US$300 million of battery-grade lithium carbonate, Bloomberg reported.
In keeping with a procurement discover up to date on Monday (August 3), the Protection Logistics Company (DLA) scrapped its solicitation for 35.64 million kilos, which tallies roughly 16,170 metric tons, of the battery metallic.
Initially launched on July 2, the tender sought fixed-price provide contracts extending over a five-year interval to produce the Nationwide Protection Stockpile.
Earlier than the sudden withdrawal, the deadline for provider bids had been delayed twice. An e-mail despatched to the division requesting remark outdoors common workplace hours went unanswered.
The reversal marks one other stumble in federal efforts to construct defensive materials reserves. The DLA, accountable for securing metals for US army and industrial wants, equally canceled a cobalt tender final yr.
The lithium buy was supposed to be a central element of a nationwide push to bolster the US’ crucial minerals pipeline.
In February 2026, the White Home established Challenge Vault, a US$12 billion public-private stockpiling initiative anchored by a US$10 billion mortgage from the US Export-Import Financial institution and almost US$2 billion in non-public capital.
The mission permits authentic tools producers to determine required grades of fabric and pay dedication charges for emergency entry.
Nonetheless, executing the technique introduces a paradox for Western governments. As a result of the US and Europe severely lack home capability to refine uncooked ore, they need to stockpile processed, battery-ready chemical compounds.
With world lithium carbonate costs surging almost 20 % in China to date this yr amid unstable buying and selling, financial and provide chain leverage stays closely concentrated in Beijing.
That leverage is more and more managed via export controls. Beijing now requires exporters to submit granular particulars relating to the customer, end-use, and materials specs earlier than granting approval.
This regulation palms the Chinese language authorities a de facto veto over delicate transactions, permitting it to selectively choke the precise shipments Western nations must construct their reserves.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
