The U.S. Department of Defense seeks to procure up to $300 millions in lithium resources.

Golden Ten Data reported on July 8 that the U.S. Department of Defense is procuring lithium for its strategic reserves in an effort to further reduce risks related to critical mineral supply. According to a tender document published on the U.S. government website on July 2 (local time), the Defense Logistics Agency is seeking to purchase approximately 36 million pounds (about 16,000 tonnes) of battery-grade lithium carbonate over the next five years, with the contract value reaching up to $300 million. Lithium prices have surged over one-third year-to-date, driven by optimistic demand sentiment and supply uncertainty from major production areas like Zimbabwe. The Defense Logistics Agency, which manages metal reserves for U.S. military needs, previously sought information in March regarding potential reserves for lithium and other key minerals. Earlier this year, the White House launched “Project Vault,” a $12 billion key mineral reserve initiative aimed at the private sector. In the tender document, the Defense Logistics Agency requested suppliers to propose fixed prices for five years, and indicated that the government plans to invest a minimum of $1 million and up to $300 million under the contract. The bidding deadline is July 17.