The U.S. Defense Logistics Agency (DLA) recently issued a tender document, planning to procure approximately 7,480 tons of alloy-grade cobalt over the next five years, with a contract value of up to US$500 million. This marks the  large-scale procurement of cobalt as a strategic reserve by the United States since the end of the Cold War in 1990. 
The backdrop to the U.S.'s cobalt reserve procurement stems from profound changes in the global supply chain landscape.
As a core material for high-temperature alloys in aircraft engines, ammunition manufacturing, and magnetic components in electronic devices, cobalt's strategic value is increasingly evident in both military and civilian sectors.

In recent years, the export ban imposed by the Democratic Republic of the Congo has driven up cobalt prices, while China's dominance of the global cobalt processing system has intensified the urgency for the United States to accelerate the construction of a domestic supply chain. DLA's decision to limit purchases to Canadian Vale, Japanese Sumitomo Metal Mining, and Glencore-owned facilities reflects the highly concentrated supply of high-end cobalt products, and the requirement for fixed-price contracts may further disrupt market pricing mechanisms. 

The market has reacted sensitively to this development. Following the announcement of the tender, precious earth-related stocks in the US market saw widespread gains, with shares of cobalt mining companies rising by over 1% in a single day, while Chinese cobalt salt processing companies experienced a correction in their stock prices due to fluctuations in export expectations.
Industry analysts point out that if the US continues to expand its procurement scale, it may intensify global competition for cobalt resources, particularly testing the supply stability of the DRC, which accounts for 60% of global cobalt production. Additionally, the DLA plans to reallocate funds from the CHIPS Act to the critical minerals sector, which may drive domestic cobalt extraction technology R&D in the U.S., but is unlikely to alter the current reliance on foreign sources in the short term.

From a geopolitical perspective, this procurement aligns with the strategic resource competition between China and the U.S. in sectors like precious earths and lithium batteries.
China is strengthening its control over the cobalt processing chain through national reserves and industrial policies, while the United States is reshaping the supply chain through defense procurement and tax incentives. Market observers believe that cobalt may become another key commodity triggering multilateral trade friction, particularly in the context of the United States promoting “friend-shoring.” Allies such as Japan and Canada may see their cobalt supply chain positions receive long-term policy preferences. 

The U.S. Department of Defense's cobalt reserve initiative is both a defensive measure to address supply chain vulnerabilities and an active bid for dominance over global critical resources. As demand for cobalt continues to grow in military technology and the new energy industry, international competition over this metal may extend from the market level to deeper areas such as technical standards and trade rules.