Vale Surges 3.16% on U.S. Defense Cobalt Contract as Trading Volume Jumps to 329th Rank

Vale (VALE) rose 3.16% on August 22, with a trading volume of $0.32 billion, up 126.75% from the previous day, ranking 329th in market activity. This surge coincided with the U.S. Department of Defense’s (DoD) announcement of a $500 million cobalt procurement plan over five years, targeting 7,480 tonnes of alloy-grade cobalt for defense applications. Vale’s Canadian unit is among the three approved suppliers, alongside Japan’s Sumitomo Metal Mining and Norway’s Glencore Nikkelverk.

The DoD’s initiative aims to bolster national security by securing critical mineral supplies amid global supply chain vulnerabilities. Cobalt, a key component in high-temperature alloys for jet engines and battery technology, is predominantly imported by the U.S. The tender follows China’s rare earth export restrictions, which disrupted supply chains and prompted production halts in the automotive sector. The exclusive supplier list highlights the strategic importance of allied nations in sourcing critical materials, with Vale’s inclusion signaling potential long-term demand stability for its cobalt operations.

U.S. policy efforts to reduce foreign dependence on critical minerals have intensified, including the appointment of former mining executive David Copley to lead supply chain resilience initiatives at the National Security Council. The DoD’s procurement aligns with broader strategies to extract critical minerals from domestic mine waste and enhance production capacity. For Vale, the contract could reinforce its position in the cobalt market, particularly as the U.S. seeks to diversify supply chains and mitigate geopolitical risks.

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