US Defense Department cancels $300 million lithium carbonate tender

The U.S. Department of Defense’s Defense Logistics Agency (DLA) announced the cancellation of a solicitation to purchase up to $300 million worth of battery‑grade lithium carbonate for the National Defense Stockpile. The tender, launched on July 2, 2026, sought roughly 35.6 million pounds (about 16,000 metric tons) of lithium carbonate over a five‑year period, with bid deadlines extended twice before the abrupt withdrawal on August 3, 2026.

The move follows a previous cancellation of a cobalt tender and reflects growing difficulties for the U.S. administration in securing critical minerals at fixed prices amid volatile global markets. Lithium carbonate prices have risen about 20 % year‑to‑date, while Chinese export controls and production shifts add further uncertainty to supply‑chain planning for defense and strategic industries.