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The United States is taking major steps to secure its supply of cobalt, a critical mineral essential for defence applications and lithium-ion battery production. For the first time since 1990, the Defence Logistics Agency (DLA) has issued a tender to acquire up to 7,500 tons of alloy-grade cobalt over the next five years, in a contract valued between US$2 million and US$500 million.
By Ryan Chigoche
This initiative comes as officials seek to reduce dependence on foreign sources of critical metals and strengthen domestic supply chains.
Cobalt is overwhelmingly mined in the Democratic Republic of the Congo (DRC), which accounts for roughly 70% of global production.
However, the majority of this cobalt is exported to China, where it is refined and processed for industrial and battery applications.
This heavy reliance on Chinese processing has made the U.S. and other countries vulnerable to supply disruptions. In early 2025, the DRC imposed an export ban on cobalt to stabilise prices and encourage local processing, a move that further tightened the global market and contributed to rising prices.
China’s role in the cobalt supply chain is significant, not only as a processing hub but also through direct investment in DRC mining operations. Chinese companies have expanded production in the DRC, consolidating their influence over a key portion of the world’s cobalt supply.
The combination of Chinese dominance and the DRC’s export controls has highlighted the strategic vulnerability of countries like the U.S., which rely on secure access to this critical mineral for both technological and defence applications.
In what can be viewed as a response to these dynamics, the Pentagon’s procurement is part of a broader effort to address these vulnerabilities.
By securing cobalt from reliable international suppliers such as Vale in Canada, Sumitomo in Japan, and Glencore’s Norwegian plant, the U.S. aims to reduce reliance on China and mitigate the risk of future supply interruptions.
This strategy aligns with recent policy shifts that give the DLA more flexibility to make long-term purchases without congressional approval, supported by guaranteed funding of US$1 billion per year.
The U.S. move underscores the geopolitical dimension of mineral supply chains, as recent Chinese export restrictions on other critical metals like gallium, germanium, and antimony have shown how dependent industries can be disrupted.
By building its first strategic cobalt reserve in decades, the U.S. seeks to safeguard both its defence capabilities and technological industries against future market shocks, while signalling to the global market the importance of diversifying supply sources for critical minerals.
