Cobalt is necessary in the defense industry for its use in munitions and high-temperature aerospace alloys, as well as high-capacity batteries. It’s important to source cobalt here in the U.S. to secure our supply and ensure it is mined with the highest standards in mind. Over 80 percent of all cobalt is mined and refined by China, resulting in an opaque market with current historically low prices. Jervois Mining USA owns the only primary cobalt mine in the U.S., and due to cobalt prices remaining well below profitable levels, has had to temporarily suspended operations.
In June, the Department of Defense entered a $15 million agreement with Jervois to fund mineral resource drilling to accelerate the definition and expansion of known cobalt resources at its Idaho Cobalt Operations and adjacent Sunrise deposit. It’s a first step in a long but important process to reshore mineral supply chains and decrease reliance on overseas sources for these minerals.