Pentagon Plans $1B Critical Minerals Buying Spree

The War Department reportedly moved to buy up to $1 billion in critical minerals as part of an accelerated stockpiling strategy aimed at reducing reliance on Chinese supply chains.

The Pentagon's Defense Logistics Agency outlined the bolstered effort in recent filings, the Financial Times reported Saturday night.

"They are incredibly focused on the stockpile," a former defense official told FT. "They're definitely looking for more and they're doing it in a deliberate and expansive way, and looking for new sources of different ores needed for defense products."

The expanded purchases come after Beijing imposed sweeping new export controls on rare earths and related technologies, escalating tensions between Washington and Beijing. President Donald Trump announced new tariffs on Chinese imports in response, accusing China of trying to "hold the world captive."

The agency plans include up to $500 million in cobalt, $245 million in antimony from United States Antimony Corporation; $100 million in tantalum; and $45 million in scandium from Rio Tinto and other suppliers, according to the report.

The U.S. is also exploring stockpiles of rare earths, tungsten, bismuth, and indium — metals critical for advanced weapons systems, radar, and missile defense.

The Pentagon's current stockpile is valued at about $1.3 billion, but the One Big Beautiful Bill Act passed earlier this year allocates $7.5 billion for critical minerals, including $2 billion specifically for defense stockpiling through 2027.

Analysts warn the scale of planned purchases — including 222 metric tons of indium — could strain non-Chinese supply chains, according to FT.

"Market participants have been taken aback by the volumes requested by the DLA across several metals," according to Argus Media's Cristina Belda. "Many consider the quantities to be unrealistic, especially within the proposed five-year timeframe.

"In most cases, the requested tonnages exceed the U.S.'s annual production and import levels."

The Pentagon did not comment on the stockpiling plans, according to FT.

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