Key facts
- The U.S. Department of Defense canceled a tender for lithium carbonate.
- The tender was for up to $300 million worth of battery-grade lithium carbonate.
- The lithium carbonate was intended for the national strategic stockpile.
- The Defense Logistics Agency managed the tender and canceled it entirely.
- The cancellation follows a similar canceled tender for cobalt last year.
The U.S. Department of Defense has canceled a tender to purchase up to $300 million worth of lithium carbonate for the national strategic stockpile. The Defense Logistics Agency, which manages the defense supply chain, canceled the solicitation in its entirety, effective August 3, 2026. The deadline for bids had been extended twice. The agency did not provide a reason for the cancellation. This marks another setback for the administration's efforts to secure critical minerals for defense and strategic industries. Last year, the Defense Logistics Agency also canceled a tender for cobalt, expected to be worth about $500 million. These difficulties suggest challenges in procuring critical minerals at fixed prices over several years. Lithium carbonate prices have risen about 20% year-to-date, though futures in China dipped in July due to fears of a glut amid uncertain demand growth and the restart of mines like CATL's Jianxiawo facility. Chinese lithium carbonate production is expected to increase in August.