The Ministry of National Defense is pushing a procurement project worth up to $1 billion (about 1.2 trillion won) to stockpile key minerals needed for the defense industry, the British daily Financial Times (FT) reported on the 12th (local time).
The move is a response to China's tightened export controls in strategic minerals such as rare earths and cobalt. China recently expanded export restrictions on certain rare earth ores and refining technologies. U.S. President Donald Trump, in response, warned that he would impose "an additional 100% tariff on Chinese minerals."
According to the procurement plan of the Defense Logistics Agency (DLA) under the Ministry of National Defense, cited by the FT, the DLA is reviewing purchases of up to $500 million in cobalt, $245 million in antimony, $100 million in tantalum, and $45 million in scandium. In addition, rare earths, tungsten, bismuth, and indium are also expected to be included as additional stockpile targets.
These critical minerals are essential resources for major weapons systems such as missiles, radar, aircraft, and precision-guided munitions. The Ministry of National Defense classifies them as top-priority items to manage for national security.
The DLA currently stores dozens of minerals, including alloys, metals, ores, and precious metals, in nationwide stockpile warehouses. As of 2023, the assessed asset value amounts to $1.3 billion.
The project is based on the Trump administration's "critical minerals strategy" and a tax cut bill. The bill allocates a total budget of $7.5 billion. Of that, $2 billion is set aside as defense stockpile funds for 2026–2027, $5 billion is allocated to investments in critical mineral supply chains, and $500 million is earmarked for private financing support programs.
However, some in the industry warn that large-scale U.S. procurement could trigger short-term supply-demand imbalances and sharp price increases in raw materials markets. For example, the 222 tons of indium the Ministry of National Defense is considering securing is close to the United States' annual consumption (about 250 tons).