The U.S. Department of Defense is stockpiling large quantities of cobalt, lithium, and graphite, potentially diverting resources from the clean energy sector, according to a new report. This effort, funded by recent legislation, prioritizes military needs amid concerns over climate action. Experts warn that such hoarding could hinder the electrification of transportation and energy production.
A report from the Transition Security Project highlights how the Pentagon's accumulation of critical minerals is complicating the shift to renewable energy. Under President Donald Trump's One Big Beautiful Bill Act, $7.5 billion was allocated to expand reserves of materials like cobalt, lithium, and graphite, stored in six depots across the nation and managed by the Defense Logistics Agency. These stockpiles, intended for use in jet engines and weapons, can only be accessed during declared wars or by order of the Undersecretary of War.
Lorah Steichen, a strategist with the project, describes the dilemma as a choice "between missiles and buses." The planned reserves include 7,500 metric tons of cobalt and 50,000 metric tons of graphite, enough to power 102,896 electric buses—far exceeding the roughly 6,000 operating in the U.S.—or to create 80.2 gigawatt-hours of battery storage, more than double the current national capacity.
This marks a revival of military stockpiling not seen since the Cold War, when the U.S. built reserves to reduce foreign dependencies. By 2003, those had dwindled, and efforts during Joe Biden's presidency to repurpose them for climate goals did not succeed. Now, an additional $2 billion funds the expansion, with $5.5 billion for supply chain development. The International Energy Agency notes these minerals' role in batteries and wind turbines for decarbonization.
Critics, including geographer Julie Klinger from the University of Wisconsin, call for greater transparency. The U.S. military, the world's largest institutional greenhouse gas emitter and responsible for 80% of federal emissions, does not report mineral procurement details. A 2021 Defense Department report acknowledged that supply disruptions in rare earth elements would primarily harm the civilian economy. Steichen emphasizes challenging the military-centric definition of "critical minerals," tied to national security. Klinger points out that while minerals in batteries can be recycled, their use in munitions destroys them irretrievably: "The one application of critical minerals that destroys them through use is literally blowing them up."
The Pentagon is also investing in mines in Alaska, Idaho, and Saudi Arabia to lessen reliance on China, which dominates the market. Right-wing organizations like the Heritage Foundation advocate for this strategy.
