The U.S. is seeking to procure cobalt worth up to $500 million for defense stockpiles amid the country's move to boost its critical mineral supplies…U.S. President Donald Trump in March invoked emergency powers to boost domestic production of critical minerals as part of a broad effort to offset China's near-total control of the sector…According to the tender document published by the U.S. Department of Defense and the Defense Logistics Agency (DLA) on Wednesday, they are looking for offers for alloy-grade cobalt of about 7,480 tonnes over the next five years…Cobalt, mostly imported by the U.S., is used in batteries, a component in nickel superalloys for high temperature sections of jet engines and industrial gas turbines, among others.

Canada is working with its allies to potentially fund critical mineral transactions, similar to what the U.S. government did with MP Materials to diversify the supply chain from China, Energy and Natural Resources Minister Tim Hodgson told Reuters on Tuesday…The key target, Hodgson said, would be minerals subject to China's export restriction, which is challenging the production of important types of mineral products in G7 and NATO countries…"I think you'll see us looking at similar types of transactions, working with our allies," Hodgson said.

With geopolitical tensions and friction with the United States rising under the Trump 2.0 administration, Canada is recognizing the need for greater self-reliance in producing military equipment and seeking to diversify its defence partnerships. A key focus is the Arctic – a region where Russia, the largest Arctic state, continues to expand its military and commercial footprint. While China does not border the Arctic, it has declared itself a “near-Arctic state” and is steadily increasing its strategic activities in the region. The Arctic’s importance has only grown as melting ice unlocks access to oil, gas, and vital shipping routes. In response, Canadian Prime Minister Mark Carney recently announced plans to bolster Canada’s military presence in the North, underscoring the region’s growing significance in national defence planning…In this context, trilateral co-operation between Canada, South Korea, and Japan presents a timely opportunity. The industrial strengths of Canada’s Northern Pacific partners – in defence, shipbuilding, and robotics – align with Canada’s investment priorities in surveillance systems, autonomous military platforms, maritime defence, and Arctic-capable equipment. Conversely, the high-tech sectors of Seoul and Tokyo – still heavily reliant on Chinese-sourced critical minerals – would benefit from upstream integration with Canada’s resource base. With its vast reserves, Canada can offer stable inputs for key components like sensors, batteries, and alloys, strengthening the supply chain resilience of South Korean and Japanese defence products that, in turn, support Canada’s Arctic security…Japan and South Korea’s defence industries need Canada’s critical minerals…In exchange for defence technology, Canada offers Japan and South Korea a stable, democratic source of critical minerals – essential for defence applications such as precision-guided munitions and advanced batteries…Cobalt, vital for lithium-ion batteries in military assets and alloys for munitions, poses similar risks and opportunities. With Chinese firms controlling 80 per cent of cobalt production in Congo-Kinshasa – from where over half of the world’s cobalt is sourced – supply vulnerabilities remain acute. As the world’s fourth-largest cobalt producer, Canada offers a stable and sustainable alternative. Projects like NICO by Fortune Minerals in the Northwest Territories and Electra Battery Materials in Ontario can support a trilateral supply chain linking Canadian resources with the Japanese and South Korean defence industries. 

China, the world's dominant rare earth supplier, issued on Friday measures to regulate the mining, smelting and separation of the critical minerals key to energy transition, further tightening its grip over supply…Beijing already regulates and manages rare earth mining, smelting and separation via a quota system. The new rules will include imported raw materials in that quota system, the Ministry of Industry and Information Technology said in a statement, following a public consultation process that began in February…The inclusion of imported ore signals a further tightening of supply, analysts said. The proposal sparked opposition from companies concerned they could lose access to feedstock.