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    US $500m cobalt tender reopened: strategic supply signals for mine planners

    November 21, 2025|

    Reviewed by Joe Ashwell

    US $500m cobalt tender reopened: strategic supply signals for mine planners

    First reported on MINING.com

    30 Second Briefing

    The US Defense Logistics Agency has reopened a $500 million tender to buy up to 7,500 tonnes of cobalt after benchmark prices more than tripled since mid-August. The agency first sought offers in August but is now reissuing the procurement as spot market volatility and tight supply complicate long-term contracting. For miners and refiners, the move signals sustained US strategic demand for cobalt metal and intermediates, with potential upside for projects able to deliver secure, traceable supply into government stockpiles.

    Technical Brief

    • Traceability and origin disclosure provisions will favour projects with established ESG and chain‑of‑custody systems.
    • Price volatility since August complicates fixed‑price offers, pushing bidders towards index‑linked or formula pricing.
    • For mine developers, the tender creates an offtake anchor that can support project financing assumptions.

    Our Take

    Cobalt appears in only a handful of pieces in our mining coverage, so a US-based $500m Defence Logistics Agency tender signals that strategic stockpiling rather than pure market supply stories is currently driving most cobalt-related activity.

    For United States items tagged as Projects and Contract Award, tenders of this scale are more commonly associated with defence or critical minerals security than with single-mine development, suggesting downstream processors and recyclers may be as relevant as primary miners in bidding dynamics.

    With a mid-August time horizon, the reopened cobalt tender effectively sets a near-term price and volume signal for US-linked offtake, which is likely to influence contract negotiations for North American cobalt projects and refiners captured elsewhere in our mining database.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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