US NdFeB magnet stockpile tender targets 1,100 tonnes over five years

NdFeB

The US NdFeB magnet stockpile tender signals a sharper push to secure permanent magnets for defense needs. Defense Logistics Agency (DLA) has issued a tender for more than 1,100 tonnes of sintered NdFeB magnet blocks. Meanwhile, the program spreads purchases over five years to build a reliable domestic supply base in the United States.

Contract scope, grades, and pricing mechanics

The tender sets three IDIQ awards to cover four grades of NdFeB magnet block. It guarantees at least $3mn in value and caps ordering at $200mn across the contracts. Therefore, suppliers can scale output while the government limits its budget exposure.

The first delivery order uses a firm-fixed price, which reduces early pricing uncertainty. Later orders will compete among awardees, which keeps pricing pressure on performance. United States Department of Defense will evaluate best value using capability, approach, past performance, and price.

What it means for rare earth magnet supply chains

Domestic production sits at the center of the US NdFeB magnet stockpile tender. The agency wants vendors that can manufacture in the US or designated outlying areas. As a result, qualifying magnet makers may accelerate investments in sintering, machining, and quality systems.

Sintered NdFeB magnets power guidance, motors, and sensors, so demand can surge during procurement cycles. However, suppliers must also secure rare earth inputs like neodymium and dysprosium with tighter traceability. Therefore, the tender could strengthen upstream partnerships and shorten lead times for defense-grade permanent magnets.

The Metalnomist Commentary

This tender reinforces the trend toward strategic stockpiling of critical components, not only raw materials. Meanwhile, the contract structure rewards scalable capacity and disciplined pricing in a volatile rare earth market. If domestic vendors execute well, the US NdFeB magnet stockpile tender can become a model for allies.