The Pentagon has launched a global procurement program of up to $1 billion of critical minerals to replenish the nation’s stockpile, seeking to reduce dependence on China, which holds a leading position in the market for metals needed for the defense industry. This is reported by Financial Times.
The program is implemented by the Defense Logistics Agency (DLA). It covers the procurement of cobalt, stibium, tantalum, scandium and other rare earth elements in both the US and allied countries. These materials are key to the production of modern technologies, from radar systems to combat aircraft. According to the plans, it is planned to spend up to $500 million on cobalt, $245 million on stibium, $100 million on tantalum and $45 million on scandium.
The U.S. moves came in response to China’s recent export restrictions on rare earth elements and permanent magnets, which raised concerns about the availability of the metals for American and European industries. In response, Donald Trump’s administration imposed additional 100 percent tariffs on Chinese imports.
In addition, the program includes investments of $7.5 billion in the critical minerals sector. Of these, $2 billion is earmarked for replenishing national defense reserves, $5 billion for the development of supply chains, and $500 million for a credit program aimed at stimulating private business investment. These measures are part of the Trump administration’s strategy to strengthen national security and reduce dependence on Chinese suppliers of strategic materials.
