Pentagon cancels its $300 million lithium tender for the strategic stockpile

The US Department of Defense has cancelled a tender to buy up to $300 million worth of lithium carbonate for the national strategic stockpile. The department's Defense Logistics Agency, which manages the defense supply chain from raw materials to end-user disposition, cancelled the solicitation in its entirety effective 3 August 2026 (12 Mordad 1405) and gave no reason in its notice.

The agency had published the tender in early July, seeking offers for nearly 36 million pounds, about 16,000 tons, of battery-grade lithium carbonate over the next five years. The bid deadline had been extended twice, first from 17 July to 30 July and then from 30 July to 5 August. Last year the same agency cancelled a cobalt tender expected to be worth about $500 million. The two successive cancellations signal difficulty in procuring critical minerals at fixed prices for supply over several years.

Lithium carbonate prices have jumped by about 20% year to date, but futures in China dipped in July to their lowest level in five months as some mines restarted, intensifying fears of a glut in the coming months. China's electric vehicle battery giant Contemporary Amperex Technology Co (CATL) was allowed in June to restart its Jianxiawo lithium mine, a development that sank lithium prices in China. Analysts at Mysteel wrote in a note on Tuesday that China's lithium carbonate production is expected to rise 7.6% in August compared with July.