U.S. Boosts Critical Minerals Stockpile in Defense Move That May Benefit Mining Stocks
The Pentagon is allocating up to $1 billion to secure critical minerals essential for defense and technology production, as China tightens its grip on global supply chains. The Defense Logistics Agency is prioritizing cobalt, antimony, tantalum, and scandium—materials vital for fighter jets, radar systems, and electric vehicles.
Contracts already issued reveal aggressive purchasing targets: $500 million for cobalt, $245 million for antimony from U.S. Antimony Corporation, and smaller allocations for scandium suppliers Rio Tinto and APL Engineered Materials. Market analysts note the Pentagon's demand may outstrip current U.S. production capacity.
The move follows China's recent export restrictions on rare earths, prompting President Trump to threaten 100% tariffs on Chinese imports. This strategic stockpiling signals growing tensions in the global commodities market, with Ripple effects likely across industrial and tech sectors.
