Why did the US Department of Defense cancel its $300 million lithium procurement tender?

The Defense Logistics Agency (DLA) canceled the tender for nearly 36 million pounds of battery-grade lithium carbonate without providing any stated reason; the notice appeared on its website, and no official explanation was given in the article.

What was the scope and timeline of the canceled lithium contract?

The tender, first announced on July 2, sought fixed-price proposals from suppliers for five-year deliveries of battery-grade lithium carbonate, with an intended spend between $1 million and $300 million; the original deadline of July 17 was extended twice before the cancellation.

US Defense Agency Cancels Plan to Buy $300 Million of Lithium

Aug 3, 2026

The US Defense Logistics Agency canceled a $300 million tender for 36 million pounds of battery-grade lithium carbonate, signaling challenges in securing critical mineral supplies. This occurs amid volatile prices and efforts to reduce reliance on Chinese suppliers.

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