Lithium carbonate prices have climbed more than a third this year, and the U.S. military wants to lock in a large supply before conditions shift further.
The Defense Logistics Agency has issued a solicitation for nearly 36 million pounds of battery-grade lithium carbonate, structured as a five-year contract with a ceiling of $300 million, according to a tender document dated July 2 on a U.S. government procurement site.
Proposals from suppliers are due July 17, with the government committing to a minimum spend of $1 million.
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The price surge reflects demand optimism alongside supply uncertainties concentrated in key producing nations such as China and Zimbabwe. Lithium carbonate is a key ingredient in batteries for electric vehicles and energy storage systems, making it central to both commercial and defense manufacturing.
The procurement fits into a sweeping federal push to reduce military dependence on foreign mineral supply chains. GOP budget legislation set aside $2 billion for Pentagon mineral stockpiling, and the White House separately launched Project Vault earlier this year, a $12 billion initiative to build critical minerals reserves in the private sector.
The DLA, which oversees the National Defense Stockpile, had signaled its interest in lithium stockpiling through an information request issued in March before advancing to a formal solicitation.
The scale of current procurement activity extends well beyond lithium. The U.S. Army has also reached agreements with several companies to construct mineral processing plants on military bases across the country, a sign that domestic supply chain resilience has moved to the top of the defense agenda.
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