The U.S. Defense Department has canceled a major tender to procure up to US$500 million in cobalt—its first such effort since 1990. The procurement was aimed to source roughly 7,500 tonnes of alloy-grade cobalt over five years to bolster critical mineral stockpiles, reduce foreign dependence, and support defense and battery supply chains. The cancellation comes after multiple deadline extensions and unresolved issues in the contract’s Statement of Work, according to a published notice.
The original solicitation invited proposals from three identified suppliers: Vale’s Canadian units, Sumitomo in Japan, and Glencore’s Nikkelverk in Norway. Due to ambiguities and risk factors, the project has been put on hold until contract conditions can be clarified. The Defense Logistics Agency (DLA) stated that once those issues are addressed, the tender may be reissued with new terms.
This cancellation signals the difficulty governments face when intervening in critical minerals markets amid price volatility and deep supply chain concerns. Although the decision is a setback, the U.S. maintains that it intends to reengage the procurement once the contractual framework is resolved.