The US military is hoarding minerals that are critical for the green energy transition

An accelerating global arms race, which is being driven by an increased power competition between the US and China, could hinder climate action as minerals that are critical for the energy transition are being diverted for military use instead.

A new report details how President Donald Trump’s “One Big Beautiful Bill” has given the US military billions of dollars to bolster the country’s National Defence Stockpile with large quantities of so-called rare earths and minerals for future military use. The report describes how the Defense Logistics Agency plans to stockpile thousands of metric tons of cobalt, graphite, indium, rare earth elements, and other minerals the administration has deemed as “critical” for the American military industry.

But these minerals are also critical for green technologies that play a key role in the global transition away from fossil fuels to low-carbon and renewable energy sources. As such, this hoarding by the US military risks diverting vital resources away from crucial civilian decarbonization measures, the report warns.

“Washington is ramping up stockpiles, forging trade deals, investing in domestic production and even taking equity stakes in mineral companies to “onshore” supply and assert dominance over mineral supply chains. By exerting control over the sourcing and distribution of critical minerals, the Pentagon is diverting materials away from civilian-led decarbonisation efforts while maintaining its role as the world’s largest consumer of fossil fuels and a major driver of climate change,” the report states.

For example, the same amount of cobalt and graphite that the Defense Logistics Agency plans to stockpile could instead be used to produce 80.2 gigawatt hours of battery capacity or approximately 100,000 electric buses. That’s more than double the existing energy storage in the US and fifteen times more electric buses than are currently in operation across the country.

“Every ton of cobalt or graphite stockpiled for the military could be used instead for electric buses, large-scale energy storage or other renewable technologies needed for the energy transition,” Lorah Steichen, the report’s author, said. “These materials should accelerate decarbonization, not fuel the insatiable war machine.”

By hoarding these important minerals, the US is diverting materials away from necessary decarbonization efforts at a time when rapid action against the climate crisis is paramount to the very survival of our modern human civilization. The report also warns that an increased military demand for minerals could potentially be a driving force for new forms of harmful extractive mining practices, such as deep-sea mining, that could cause major ecological destruction. Moreover, it also risks fueling a global military buildup and geopolitical conflicts where nation-states could feel forced to use military force to secure their access to these critical minerals and resources and to keep them away from their respective rivals.

“This misplaced prioritisation threatens both the planet’s future and the possibility of a just, collaborative energy transition that benefits all people rather than narrow military interests,” the report concludes.

And this is central to this story; we won’t be able to enjoy true global peace and security from this hyper-militarization and mineral dominance. Instead, we’ll reach it by building just and fair political and economic systems that are capable of sustaining both people and the planet.