Gen. Jack Keane Warns Against Reduction in Defense Budget, Urges Stockpiling Cobalt for National Security

The United States Considers Increasing Defense Budget and Reducing Dependence on Cobalt Imports

Recent reports have revealed that the United States is contemplating a potential increase in its defense budget for the upcoming fiscal year, with a focus on reducing its reliance on cobalt imports, a crucial resource for national security.

Exploring Options

Last year, the U.S. delved into the possibility of procuring cobalt for its defense reserves in an effort to diminish its dependence on China, a predominant processor of cobalt. This mineral plays a vital role in the production of missiles, aerospace parts, communication magnets, radar and guidance systems, and batteries for electric vehicles.

Global Supply Chain

Congo is a significant supplier of cobalt to the world, with a large portion of its output being exported to China for processing. Recognizing the potential vulnerability in relying heavily on a single source, the U.S. is considering strategic measures to secure its cobalt supply.

Stockpiling Plans

The Defense Logistics Agency (DLA), responsible for critical material supply chain assessments, may reconsider purchasing cobalt for defense stockpiles in the future, despite not including it in the latest stockpiling plans. This decision aims to mitigate the dominance of China in processing cobalt and ensure a secure supply for defense and technology needs.

Market Expectations

The omission of cobalt from the DLA's stockpiling plans surprised the market, which anticipated an increase in purchases due to a significant price drop. However, the agency emphasizes that economic factors alone cannot justify the acquisition of materials for national defense purposes.

Congressional Involvement

The move to assess cobalt reserves was partly driven by a congressional letter urging the Department of Defense to prioritize the acquisition of domestically refined cobalt. Lawmakers highlighted the heavy dependence on other countries for refined cobalt, particularly China, and emphasized the need to bolster U.S. stockpiles to safeguard national interests.

National Defense Stockpiles

The current cobalt stockpile in the National Defense Stockpile (NDS) is estimated to be significantly lower than the annual U.S. consumption, posing a potential risk to the country's critical mineral supply chain. Concerns have been raised about the limited reserves and the need to bolster domestic sources of critical minerals, including cobalt.

Security Measures

While the DLA holds a substantial amount of pure cobalt in the NDS, specific details regarding the quantity are withheld for security reasons, underlining the sensitivity and importance of securing these critical resources.

Future Implications

As the U.S. evaluates its defense and mineral resource strategies, the potential increase in the defense budget and the pursuit of domestic sources of cobalt underscore the nation's commitment to strengthening its national security and reducing vulnerabilities in the global supply chain.