U.S. Defense Department Awards $300 Million Lithium Deal to Zimbabwe

The U.S. Defense Logistics Agency has opened a contract worth up to $300 million to purchase about 16,000 tonnes of battery‑grade lithium carbonate over the next five years, with bids due by 17 July. The procurement aims to build a strategic lithium stockpile and reduce U.S. reliance on China for critical battery minerals.

Zimbabwe, Africa’s largest lithium producer, is being positioned as a potential key supplier. Production of lithium concentrate rose 30 % in early 2025 compared with the previous year, and the country projects output of around 160,000 tonnes of lithium‑carbonate‑equivalent per year by 2030. The contract reflects growing U.S. emphasis on securing critical minerals essential for electric‑vehicle batteries, renewable‑energy storage and defense technologies.

The move comes amid broader trends showing that electric‑vehicle adoption could lift global lithium demand by roughly 50 % by 2030, while copper demand for EV infrastructure may increase six‑fold by 2040. Securing lithium supplies is therefore seen as a strategic priority for both the energy transition and national security.