The Pentagon is preparing to spend approximately $1 billion on the procurement of strategically important minerals to strengthen the United States’ independence from supplies from China. The Defense Logistics Agency (DLA) is considering purchasing cobalt for up to $500 million, antimony for up to $245 million from US Antimony Corporation, tantalum for up to $100 million from an American manufacturer, and scandium for up to $45 million from Rio Tinto and APL Engineered Materials as part of a global stockpiling program.
This is reported by Finway
The Importance of Strategic Minerals for US Security
Critical minerals are essential for the national security of the United States, as they are used in the production of virtually all types of modern weaponry. American authorities fear losing their technological edge if China halts supplies of these minerals. Currently, China remains the only country in the world that fully refines samarium—a metal necessary for the production of F-35 fighter jets and US missile systems.
It is noteworthy that the Chinese government has already announced a new phase of restrictions on the export of rare earth metals. The new rules will take effect on December 1. The goal is to prevent the use of rare earth metals in military technologies.
International Cooperation and Investment in Strategic Industries
In addition to efforts to reduce dependence on China, the Trump administration previously considered acquiring a stake in Critical Metals, which would provide direct interest for Washington in the largest rare earth element deposit, Tanbreez, in Greenland. The US government has also already invested in companies like Lithium Americas and MP Materials. Launching the Tanbreez project into commercial production will require $290 million.
Meanwhile, Turkey has been discussing with the United States the development of its own rare earth metal reserves in western Anatolia. This became possible after Turkey’s negotiations with China and Russia slowed down due to disagreements over technology transfer and mining rights.
The American financial giant JPMorgan Chase is also making significant contributions to the development of strategic industries. The company has announced its intention to invest up to $10 billion in companies that play a crucial role in the national security and economic resilience of the United States. These investments are part of a massive $1.5 trillion program over 10 years aimed at financing, lending, and developing key sectors—defense, energy, and high-tech manufacturing.