Defense Department announces effort to increase Idaho cobalt extraction

The $15 million dollar deal will fund mineral resource drilling by Jervois to expand known cobalt resources at the Jervois Idaho Cobalt Operations and the adjacent Sunrise desposit.

Studies also will be conducted to assess a domestic cobalt refinery.

The agreement is being made through the Office of the Assistant Secretary for Industrial Base Policy.

The DOD said It's a critical step in the U.S. effort to decrease reliance on foreign sources of strategic and critical minerals.

"In investing in domestic cobalt resources, Industrial Base Policy is building a sustainable, responsible industrial base capable of meeting our future national defense challenges" said Dr. Laura Taylor-Kale in a statement. "Investments such as these execute President Biden's focus on strengthening supply chains for critical minerals for large capacity batteries and are one step in the Defense Department's strategy for minerals and materials related to batteries."

General Motors, Tesla, Nissan and other EV makers pledged in 2022 to build cars with cobalt-free lithium ion batteries to both lower costs and reduce reliance on foreign sources of cobalt.

Cobalt, according to the DOD, is used in multiple munitions and aerospace alloys. It is critical in high-capacity military batteries, as well as in commercial electric vehicles.

Lithium and cobalt are currently heavily used in EV batteries.

The International Energy Agency estimates that 70% of the world's cobalt is produced in the Democratic Republic of Congo, where China has some mining operations. China, Australia and Chile produce 90% of the world's lithium.