The U.S. Department of Defense has awarded Ares Strategic Mining Inc. a contract valued at $168,938,267.30 through the Defense Logistics Agency, establishing the company as a sole-source domestic supplier of acid-grade fluorspar to the U.S. government. This five-year Indefinite Delivery/Indefinite Quantity agreement has a total contract ceiling of up to $250 million, representing a strategic move to secure a domestic supply chain for a material designated as critical by the United States. Acid-grade fluorspar is essential to defense readiness, industrial manufacturing, clean energy supply chains, and high-tech applications, serving as a vital input for hydrofluoric acid and fluorine-based materials that support defense systems, missile technology, steel and aluminum production, fluorochemical manufacturing, and semiconductors, batteries, and next-generation electronics.
This contract signifies a major advancement for domestic critical mineral independence, addressing a historical vulnerability where the United States has been 100% import-dependent for fluorspar. James Walker, CEO of Ares Strategic Mining, stated that this award reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain. The contract will support the replenishment of government stockpiles of strategic and critical minerals, enhancing national security and industrial resilience. Ares Strategic Mining is the only U.S. producer of acid-grade fluorspar, with operations centered on its fully permitted Lost Sheep Fluorspar Project in Utah's Spor Mountain area, where technical reports have identified extensive high-grade fluorspar with low impurity levels.
The award positions Ares at the core of America's effort to build a robust domestic sourcing network to ensure long-term self-sufficiency. Walker emphasized that the company is now a partner in America's strategic future, with products that directly contribute to national resilience, industrial strength, and long-term security. This contract validates the national importance of the Utah-based project and represents a turning point in reducing reliance on foreign sources for this critical material, aligning with broader initiatives to secure supply chains for essential minerals. The implications extend beyond immediate defense needs, potentially stabilizing prices and availability for industries reliant on fluorspar, while fostering domestic job creation and technological innovation in mineral processing.
By securing a domestic supplier, the U.S. mitigates risks associated with geopolitical tensions, trade disruptions, and supply chain vulnerabilities that could impact defense capabilities and economic stability. This development underscores a shift toward strategic autonomy in critical resources, supporting long-term goals for energy transition and advanced manufacturing. The contract's structure, with its indefinite delivery and quantity terms, allows for flexible procurement to meet evolving national needs, ensuring that fluorspar supplies remain adequate for both current and future applications. This move is part of a larger trend where governments are prioritizing domestic production of critical minerals to enhance security and competitiveness in a globalized economy.
