What's Happening?
The US Department of Defense has withdrawn a tender for cobalt procurement, which was intended to secure up to 7,500 tonnes of cobalt over five years. This decision marks a setback in the US's efforts to bolster its critical mineral reserves. The tender was initially
issued by the Defense Logistics Agency and had been extended multiple times before being canceled due to unresolved issues in the Statement of Work. The move highlights the ongoing challenges faced by Western nations in reducing dependency on China for critical minerals.
Why It's Important?
Cobalt is a vital component in the production of rechargeable batteries, military systems, and other technologies. The cancellation of the tender could impact the US's ability to secure a stable supply of this critical mineral, potentially affecting industries reliant on cobalt, such as electric vehicle manufacturing and defense. The decision underscores the geopolitical complexities of mineral supply chains and the strategic importance of diversifying sources away from China.
