The US Defense Logistics Agency (DLA) has canceled its solicitation to acquire up to $300 million worth of battery-grade lithium carbonate for the National Defense Stockpile. The tender, which sought almost 36 million pounds (approximately 16,000 tons) of lithium over five years, was originally issued on July 2, 2026. The DLA cited its inability to secure competitive offers as the reason for the cancellation, indicating difficulties in attracting suitable bids despite multiple deadline extensions.
This cancellation underscores the persistent challenges faced by the US in developing a robust strategic reserve of critical minerals, particularly lithium. The DLA had previously extended the submission deadline twice, from the initial July 17 to July 30, and then to August 5, in an attempt to garner more interest. The government had aimed to spend a minimum of $1 million and a maximum of $300 million on the contract, with the largest volume of deliveries planned for the first year to rapidly build reserves.
The effort was part of a broader US strategy to reduce its reliance on foreign, particularly Chinese, supply chains for critical minerals essential for electric vehicles, energy storage, and military hardware. While billions of dollars have been committed to expanding domestic mining and refining capabilities, the cancellation suggests that translating these strategic goals into physical supply remains difficult. Industry analysts have previously noted the US's struggle to replicate the 20th-century model of strategic petroleum reserves for 21st-century energy transition minerals.
The DLA's previous attempts to acquire other critical minerals, such as cobalt, for the National Defense Stockpile have also faced setbacks due to suppliers balking at pricing and contract terms. The current situation highlights the concentrated nature of battery-grade lithium processing, which remains heavily dominated by Chinese operations, giving Beijing significant leverage over global supply. The US aims to bypass this leverage by funding defensive reserves of processed, battery-ready materials.
