The Pentagon is gearing up for a $1 billion shopping spree for critical minerals like cobalt, antimony, tantalum, and scandium, the building blocks behind everything from fighter jets to your smartphone.
The Financial Times reports that the Defense Logistics Agency (DLA) is moving quickly to reduce U.S. dependence on China, which still dominates the global supply of these essential materials.
A Clear Signal from Washington
According to the report, the initiative stems from directives under the Trump administration’s One Big Beautiful Bill Act (OBBA), a sweeping $7.5 billion package aimed at bolstering America’s mineral independence. Of that, $2 billion is earmarked for expanding the national stockpile by 2027, while $5 billion will go toward strengthening supply chain infrastructure.
“They’re definitely looking for more, and they’re doing it in a deliberate and expansive way,” a former U.S. defense official told the FT.
The Pentagon’s procurement list reads like a who’s who of industrial metals: $500 million in cobalt, $245 million in antimony from U.S. Antimony, $100 million in tantalum, and $45 million in scandium from suppliers including Rio Tinto and Illinois-based APL Engineered Materials.
China’s Grip on Global Supply
The timing isn’t accidental. Just last week, Beijing tightened export restrictions on rare earths and related technologies, a move that prompted President Trump to cancel a planned meeting with Chinese President Xi Jinping and announce a 100% tariff on Chinese imports.
“There is no way that China should be allowed to hold the world captive,” Trump posted on Truth Social.
China currently mines over half of the world’s rare earths and controls more than 90% of global processing capacity, giving it unprecedented leverage over sectors ranging from defense to electric vehicles and consumer electronics.
That’s exactly the kind of dependency Washington is now trying to unwind.
A Worthy Endeavor for National Security
Analysts say the Pentagon’s stockpiling strategy could serve as a strategic buffer against supply disruptions and geopolitical risks, particularly if trade tensions escalate further.
“These moves show the government is conscious of how critical this stuff is and wants to support whatever domestic capacity they have,” one industry executive told the FT.
And it’s not just about rare earths. The U.S. is even considering seabed mining projects in the Pacific, where polymetallic nodules contain high concentrations of nickel, cobalt, copper, and manganese. For domestic producers, this could unlock new investment opportunities.
Market Ripples Already Showing
Prices for key minerals like germanium and antimony trioxide have surged over the past year, while rare earth shortages are beginning to pressure automakers and electronics manufacturers.
Still, not everyone is convinced the DLA’s targets are realistic. Analysts at Argus Media and Fastmarkets warned that the volumes being sought exceed U.S. annual production levels, potentially tightening already constrained non-China supply.
According to Jefferies, the Pentagon’s scandium purchase, roughly six tonnes of oxide, came in above market expectations, underscoring the urgency behind the initiative.
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