Amazing scale! The US Department of Defense plans to spend $1 billion to stockpile critical minerals to strengthen strategic reserves.

According to reports, the US Department of Defense is planning to procure key minerals worth up to $1 billion as the latest initiative to strengthen metal supply security and ensure the supply of raw materials needed for the US defense system and advanced technology. According to recent documents released by the Defense Logistics Agency (DLA), this action signifies one of the largest expansions of strategic material reserves in several years. A former US Department of Defense official described the plan as "well-thought-out and far-reaching," and pointed out that the Department of Defense is actively "seeking new strategic resources and materials" to safeguard national security. Another former official stated that the scale of this action - around $1 billion - indicates a significant acceleration of the US Department of Defense's efforts to rebuild strategic reserves. For the US Department of Defense, ensuring stable supply of critical minerals such as cobalt, antimony, tantalum, and scandium has become a strategic priority. These materials are embedded in almost all advanced weapon systems and radar platforms, and are also core components of missile guidance, batteries, and communication technology. According to the latest procurement bids from DLA, up to $500 million will be used for cobalt; $245 million for purchasing antimony from United States Antimony Corporation; $100 million for tantalum; and around $45 million for purchasing scandium from Rio Tinto plc Sponsored ADR and APL Engineered Materials in Illinois. A senior industry executive stated that these plans show that the US government "deeply recognizes the strategic importance of these minerals" and is increasingly committed to strengthening domestic production capabilities. DLA is responsible for managing dozens of strategic commodities, including alloys, rare earth metals, and precious metals, stored in government warehouses across the US. As of 2023, the assets' total value is $1.3 billion. These reserves can only be used during wartime or when declared necessary for national defense by presidential order. Market observers have reportedly been shocked by the proposed large scale of DLA's procurement. In recent years, prices of various minerals have significantly increased. The price of germanium for semiconductors and optics soared, while the price of antimony trioxide nearly doubled year-over-year. Trump's "One Big Beautiful Bill Act" allocated $7.5 billion for critical minerals projects, including $2 billion to strengthen defense reserves by early 2026 or 2027. Additionally, the act earmarked $5 billion to support US Department of Defense investments in mineral supply chains and $500 million to establish a federal credit program to stimulate private sector mining and refining activities. A former official stated that with the new funding, multiple departments within the US Department of Defense responsible for mineral security now have "ample funds." Jefferies Financial Group Inc. analysts stated that the approximately 6 tons of scandium purchased by DLA from Rio Tinto plc Sponsored ADR exceeded expectations, while global scandium oxide annual consumption is only 30 to 40 tons. Similarly, its potential transaction with United States Antimony Corporation would establish a reserve scale sufficient to "mobilize industrial base" in cases of national emergency. Gary Evans, CEO of United States Antimony Corporation, stated that the company sources raw materials from Canada, Mexico, Australia, Chad, Bolivia, and Peru. The company had revenues of $15 million in 2024. According to government data, the 3,000 tons of antimony that the US Department of Defense plans to purchase is roughly one-eighth of the United States Antimony Corporation's total consumption volume from last year. Additionally, DLA is also evaluating the possibility of purchasing rare earth elements, tungsten, bismuth, and indium. The agency expressed interest in buying 222 tons of indium ingots, which is nearly equivalent to the total annual refined indium consumption in the US in 2024 (data from the US Geological Survey).