The US Department of Defense has canceled a tender to purchase lithium for its strategic stockpiles, according to an announcement by the US Defense Logistics Agency (DLA) on its website.
The canceled tender involved approximately $300 million worth of battery-grade lithium carbonate. The contract planned for purchases ranging between $1 million and $300 million, requiring fixed-price bids that remained valid for five years.
Planned volume of battery-grade lithium carbonate
The tender was initially announced on July 2, and the bidding period had been postponed twice before July 17. No explanation was provided regarding the reason for the cancellation.
Critical mineral dependence
Lithium is a raw material used in the defense industry, energy storage systems, and electric vehicle batteries. The US aims to reduce its dependence on China regarding critical minerals.
In China, battery-grade lithium carbonate prices have increased by approximately 20% since the beginning of the year.
The DLA, which manages the National Defense Stockpile, canceled a tender for cobalt used in aviation, batteries, and the defense industry last year.
