DLA commits $2 billion to acquire critical materials for National Defense Stockpile 

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The US Defense Logistics Agency (DLA) has committed $2 billion to acquire strategic and critical materials for the National Defense Stockpile throughout the fiscal year.   

The National Defense Stockpile helps reduce the risk that material shortages could affect national defense and essential civilian industries. Strategic and critical materials needed to meet military, industrial and essential civilian requirements during a national emergency, but aren’t available commercially in sufficient quantities include rare earths, tungsten, titanium and antimony.  

Most of the critical mineral contracts awarded through DLA’s Contracting Services Office were targeted demand signals to enable domestic production and to support the National Defense Strategy emphasis on resilient, secure supply chains, Director of DLA Strategic Materials Eric Mata said. 

“Domestic sourcing is especially important when a material is essential to national defense, is subject to concentrated or vulnerable supply chains, is difficult to replace, and is not readily available from reliable sources in the quantities or forms required,” Mata said in a news release. “In those cases, domestic acquisition and stockpiling can help reduce single-point-of-failure risks, sustain U.S. industrial capability, and preserve material availability during disruption.” 

Materials sourced for the stockpile can range from high-purity aluminum to vanadium pentoxide, with many elements, metals and compounds in between. Outside of mining, approaches like recovery, recycling, refining and processing can also produce these materials. Where it’s technically and economically feasible, domestic reclamation strengthens supply resilience by providing secondary sources of critical materials, Mata said. 

The National Defense Strategy calls for supporting the defense industrial base through reshoring strategic industries and expanding domestic production. 

DLA’s acquisitions for the National Defense Stockpile direct demand toward American material suppliers and processors, strengthening industrial readiness and resilience, Mata said. 

“These materials support a range of industrial capabilities across aerospace, maritime, ground, space, communications and munitions-related sectors,” he said. 

Stockpiled materials reduce defense industrial base uncertainty and provide demand signals that help sustain specialized capabilities, Mata said. They work alongside other War Department and federal projects to strengthen domestic critical-material supply chains to complement — rather than replace — other investment options. 

He also noted the national security benefits of stockpiling to reduce exposure to foreign supply risk by lowering reliance on overseas producers, long transportation routes, and geographically concentrated supply chains. 

“These efforts are helping domestic companies plan production, retain skilled workers and expand capacity where economically viable,” Mata said. “By pairing targeted acquisitions with domestic sourcing and broader industrial-base investments, DLA Strategic Materials is helping build a more resilient supply chain for materials important to national defense.” 

Source: https://www.mining.com/us-dla-commits-2-billion-to-acquire-critical-materials-for-national-defense-stockpile/

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