US Defense Department Cancels $300 Million Lithium Purchase Tender

The United States Department of Defense canceled a tender on Monday to purchase up to 36 million pounds of battery-grade lithium carbonate. The Defense Logistics Agency had intended to spend between $1 million and $300 million to secure these supplies for strategic stockpiles over a five-year period.

The agency provided no reason for the cancellation in its official notice. This action follows a similar cancellation of a cobalt tender last year, indicating persistent challenges in U.S. efforts to secure critical minerals and diminish dependence on China.

Market conditions for the mineral remain unstable, with lithium carbonate prices in China increasing by nearly 20% this year. The canceled contract would have seen the Defense Logistics Agency procure 16,000 tons of the material to bolster the National Defense Stockpile.