A major Swiss mining corporation has finalized a significant cobalt acquisition valued at approximately $115 million, according to industry insiders familiar with the transaction.
Mining giant Glencore struck the deal with seasoned cobalt trader Rami Weisfisch for close to 2,000 metric tons of the strategic metal, sources revealed. The material plays a crucial role in defense applications and military hardware production.
Industry experts anticipate the cobalt will be transported to American facilities as part of the nation’s efforts to build strategic mineral reserves. This move aligns with ongoing U.S. initiatives to decrease dependency on Chinese suppliers, who currently dominate the global market for critical metals and minerals essential to strategic sectors.
Beijing has used its market position to implement export restrictions, establish quotas, and introduce new regulatory measures affecting mineral trade.
The London-traded mining company finalized the agreement late last year, with delivery scheduled throughout 2026. Pricing will follow a formula based on assessments from Fastmarkets, a specialized price reporting service, according to the sources.
Both Weisfisch and Glencore representatives declined to provide statements when contacted.
This transaction concludes Weisfisch’s remarkable 50-year career in the cobalt industry, sources indicated. The cobalt inventory, which Weisfisch obtained in 2015, is currently housed in storage facilities across Europe and the United States.
Industry watchers believe Glencore plans to supply the cobalt to American buyers through Project Vault, a comprehensive program designed to accumulate critical minerals. The initiative has secured $10 billion in initial funding from the U.S. Export-Import Bank plus an additional $2 billion from private investors.
During a recent company presentation, Glencore CEO Gary Nagle confirmed the company’s participation in the stockpiling project.
The Weisfisch-Glencore arrangement emerged following the U.S. Defense Logistics Agency’s decision to cancel a cobalt procurement tender in October. The original solicitation, first announced on August 19, underwent multiple revisions before being withdrawn entirely.
Defense officials informed Reuters they remain committed to acquiring cobalt for the National Defense Stockpile but are reevaluating their procurement approach. No timeline has been established for reissuing the tender.
The initial tender limited participation to three suppliers: Vale’s Canadian facilities in Port Colborne and Long Harbour, Japan’s Sumitomo Metal Mining, and Glencore’s Norwegian Nikkelverk operation.
Market dynamics have shifted dramatically due to supply constraints and increased demand expectations. The Democratic Republic of Congo, the world’s leading cobalt producer, suspended exports from late February through mid-October before implementing quota restrictions.
Current cobalt prices have reached $26 per pound, equivalent to $57,320 per ton, representing a 160% increase from February 2025 levels.
Congolese cobalt production occurs as a byproduct of copper mining, yielding hydroxide that processors easily convert into cobalt sulfate for lithium-ion battery manufacturing used in electric vehicles and mobile devices.
China, the world’s largest cobalt processor, has been most severely impacted by Congo’s export limitations and quota system, with Chinese companies actively seeking alternative supply sources.
