Lloyd J. Austin III Secretary of Defence | Official website
The Department of Defense (DoD) has awarded $6.5 million and $8.4 million to Canadian companies Fortune Minerals Limited (Fortune) and Lomiko Metals, Inc. (Lomiko), respectively. The funding is part of the Defense Production Act Investment (DPAI) program, designed to bolster the U.S.-Canadian Joint Action Plan on Critical Minerals. The grants aim to strengthen the cobalt and graphite supply chains in line with the 2024 National Defense Industrial Strategy's commitment to support domestic production of critical minerals.
The Department of Natural Resources Canada will further back these efforts with contributions of $5.6 million and $3.6 million to Fortune and Lomiko, respectively.
Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD(IBP)), highlighted that these grants are among the first given to Canadian public mining and mineral development companies. "As some of the first awards to Canadian public mining and mineral development companies, these grants exemplify the critical importance of DPA funds, the Department's partnership with Canada, and our shared commitment to strengthening North American material supply chains," she said.
The U.S.-Canadian Joint Action Plan on Critical Minerals was announced in January 2020. It aims to advance both countries' mutual interest in enhancing North American critical mineral production required for defense, aerospace, clean energy, communication, and other key industries.
"Canada is positioning itself as a global leader in the supply of responsibly sourced critical minerals for the green and digital economy. Through our work with the United States and other allies, we are developing secure critical minerals value chains that will power a prosperous and sustainable future," stated Jonathan Wilkinson, Canadian Minister of Energy and Natural Resources.
The funds awarded to Fortune will support cobalt sulfate and bismuth metal production capabilities essential for DoD and civilian markets. With this funding, Fortune can complete a feasibility study for the NICO Project, secure the remaining permits, and obtain the required authorizations to make a construction decision.
The NICO Project is a planned vertically integrated development covering the entire mineral production process. The goal is to develop a new North American producer of cobalt and bismuth critical minerals to reduce dependence on unreliable or adversarial sources of these materials.
Lomiko will use its award to advance the La Loutre natural flake graphite project. This project aims to supply high-quality graphite for defense applications and the growing electric vehicle market in North America.
Since the start of fiscal year 2024, the DPA Program has made 15 awards totaling $336 million. The DPAI is overseen by ASD(IBP)'s MCEIP program, part of the Office of the Deputy Assistant Secretary of Defense for Industrial Base Resilience.
The Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)) works with domestic and international partners to sustain a robust, secure, and resilient industrial base. It also utilizes a new Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to solicit new ideas for research or prototype project solutions for critical Supply Chain Resiliency Focus Areas.
