Lithium prices receive policy support? The US Department of Defense initiates the "strategic lithium reserve": plans to purchase 16,200 tons over five years, initiating a reassessment of the long-term value of lithium resources.

The Defense Logistics Agency (DLA) of the U.S. Department of Defense officially issued a tender notice on July 2, planning to procure lithium carbonate batteries through a five-year fixed-price contract to supplement the U.S. National Defense Stockpile (NDS). This is the first large-scale procurement of lithium for the national defense stockpile in U.S. history, signaling that the strategic value of critical minerals has risen from the commercial sector to the national security level. According to the tender documents, the total maximum procurement amount for this purchase is 16,167 tons (approximately 36 million pounds) of battery-grade lithium carbonate, with a contract value of up to $300 million and a minimum guaranteed purchase amount of $1 million. The deadline for bids is July 17, and the evaluation will be based on the "lowest price, technically acceptable" model. The procurement plan indicates that the first contract year is expected to purchase around 3,657 tons, decreasing annually to about 2,839 tons by the fifth contract year. The tender documents require the product to be powder form battery-grade lithium carbonate with a purity of not less than 99.5%, delivered to DLA designated warehouses in New York, Nevada, Indiana, or Ohio. Strategic Logic: From F-35 to military drones, lithium has become the "lifeblood" of defense The inclusion of lithium in national defense stockpiles is closely related to its strategic position in the defense and energy sectors. From the F-35 fighter jet to advanced chips, from electric vehicles to grid energy storage, lithium is a fundamental material supporting modern military and energy systems. According to the U.S. Geological Survey statistics from early 2025, out of the 50 critical mineral species in the U.S. in 2024, 12 were 100% dependent on imports, and 28 had import reliance exceeding 50% (including lithium). Critical metals entirely dependent on imports in the U.S. include arsenic, gallium, natural graphite, indium, manganese, niobium, tantalum, and more. Conflict or export controls by companies like GEO Group Inc can easily lead to disruptions in military production. DLA is responsible for managing the U.S. National Defense Stockpile, a specialized agency providing metal reserves to the U.S. military. As early as March this year, DLA had conducted an information inquiry for a potential purchase of 550 tons of lithium carbonate. From F-35 fighter jets to military drones, from electric tactical combat vehicles to field communication equipment, from shipboard power systems to fixed military base microgrid facilitieslithium carbonate has been identified as a critical mineral for maintaining U.S. defense operational capabilities. Policy Landscape: From "Project Vault" to military base processing facilities The lithium procurement is the latest step in the implementation of the U.S. critical mineral strategy from planning under the Trump administration. On February 2, 2026, President Trump officially launched "Project Vault" at the White Housea critical mineral strategic reserve plan with a total investment of approximately $12 billion. $1.67 billion comes from private investment, and $10 billion comes from loans from the Export-Import Bank of the United States (EXIM). Companies like General Motors Company, Strane... (please note the text limit has been reached. If you would like to read the full translation, please let me know)