U.S. plans to stockpile more lithium compounds used in batteries

An aerial view of the brine pools and processing areas of the Soquimich lithium mine on the Atacama salt flat, the largest lithium deposit currently in production, in the Atacama desert of northern Chile. Reuters photo by Ivan Alvarado.

U.S. plans to stockpile more lithium compounds used in batteries

LONDON, Oct 5 (Reuters) – The U.S. Defense Logistics Agency (DLA) said it has a mandate to buy more lithium compounds, including 600 kg of lithium cobalt oxide (LCO) and 2,160 kg of lithium nickel cobalt aluminium oxide (NCA), in the fiscal year starting Oct. 1.

The amounts were detailed by the DLA in its Annual Materials Plan for financial year 2016-2017, which runs from October to September, published on its website this week.

They are double the 300 kg of LCO and 1,080 kg of NCA it was mandated to buy in the 2015-2016 fiscal year.

Both compounds are used to make lithium-ion batteries. LCO batteries are used for mobile phones and laptops and NCA batteries are used for electric vehicles.

In 2014 the DLA was authorised for the first time in 20 years to acquire new materials for the National Defense Stockpile (NDS). It has authorisation to buy cobalt compounds from fiscal year 2014 through fiscal year 2019.

Under the Defense Production Act of 1950, the U.S. Geological Survey advises the DLA on the acquisition and disposal of NDS mineral materials.

(Reporting by Pratima Desai; Editing by Alexander Smith)