US Reopens $500M Cobalt Tender to Stabilize Supply
The US Defense Department will reissue a $500 million cobalt tender by the end of November 2025, with awards expected in February 2026. The Defense Logistics Agency initially sought 7,500 tons of alloy-grade cobalt from Vale SA, Sumitomo Metal Mining, and Glencore’s Nikkelverk plant. However, the August tender was canceled in October due to outstanding issues and missed deadlines.
Rising cobalt prices, driven by the Democratic Republic of Congo’s supply adjustments and recovering EV demand, prompted the reopening. Cobalt consumption in EV batteries now exceeds aerospace and industrial alloy demand. As a result, the Defense Department’s renewed tender aims to secure long-term, fixed-price contracts while mitigating market volatility.
US and global stakeholders monitor the cobalt market closely as supply constraints from the DRC and rising EV demand push prices higher. Meanwhile, suppliers must propose fixed prices for five-year deliveries, navigating evolving quotas and global production trends.
Cobalt Price Surge and Market Implications
Cobalt sulphate for EV batteries in China reached $11,932 per tonne in October, a 335% increase since early 2025. Although this remains below the 2022 peak of $90,000 per tonne, the DRC quota system for 2026–2027 could drive prices higher. Global EV makers and alloy producers may face cost pressures, while the US tender could signal renewed government influence in the strategic metals market.
SuperMetalPrice Commentary:
The reopening of the US $500M cobalt tender underscores the metal’s critical strategic role. As EV demand rises and supply tightens under DRC quotas, cobalt prices may remain elevated. Markets should watch how fixed-price contracts and government interventions influence global cobalt flows, EV battery costs, and alloy production strategies in 2026–2027.
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