The U.S. Department of Defense has canceled a tender to buy up to $300 million worth of lithium carbonate for the national strategic stockpile in another blow to the Administration looking to secure critical minerals for the defense and other strategic industries.
DoD’s Defense Logistics Agency, which manages the end-to-end defense supply chain from raw materials to end-user disposition, canceled the solicitation in its entirety, effective August 3, 2026. The deadline for bids was extended twice, first from July 17 to July 30, and then from July 30 to August 5.
The Defense Logistics Agency published the tender in early July, seeking offers for nearly 36 million pounds, about 16,000 tons, of battery-grade lithium carbonate over the next five years in a contract that was expected to be worth up to $300 million.
Set OilPrice.com as a preferred source in Google .
The agency did not explain in its notice why the tender has now been canceled in its entirety.
The failed tender is a sign that the Administration could be struggling with stockpiling critical minerals in the National Defense Stockpile.
Last year, the Defense Logistics Agency canceled a tender to buy cobalt in a contract that was expected to be worth about $500 million.
The setbacks in the cobalt tender and now the lithium carbonate tender signal difficulties in the U.S. Administration procuring the critical minerals at fixed prices for supply over several years.
Lithium carbonate prices have jumped by about 20% year to date, but futures in China dipped in July to the lowest level in five months as some mines have restarted and intensified fears of a glut in the coming months amid uncertain demand growth.
China’s EV battery giant, Contemporary Amperex Technology Co (CATL) was allowed in June to restart its Jianxiawo lithium mine, a development that sank lithium prices in China.
Lithium carbonate production in China is expected to rise by 7.6% in August compared to July, thanks to improving feedstock arrivals from Africa and peak seasonal output from salt lakes, analysts at Mysteel wrote in a Tuesday note.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
- Pakistan Partners with Canadian Firm to Boost Domestic Heavy Crude Output
- Hormuz Tanker Traffic Stalls at Two-Month Low as Attacks Escalate
- India’s HPCL Snaps Up Nigerian Crude To Dodge The Hormuz Bottleneck
