The Market Impact Committee is seeking public comments on the potential market impact of the Fiscal Year (FY) 2025 Annual Materials Plan (AMP)
The Department of Defense (DOD) maintains a stockpile of critical and strategic materials known as the National Defense Stockpile (NDS). During a war or national emergency, this stockpile is meant to provide strategic and critical materials to support national defense and essential civilian requirements in a time of national emergency. The stockpile currently contains 57 materials (i.e., primarily minerals) that are deemed strategic and critical to national security.
The Defense Logistics Agency (DLA) is the National Defense Stockpile Manager. The NDS is a strategic stockpile, not an economic stockpile. It is not intended to influence prices in the market or insulate private industry from supply shocks. Rather, its purpose is to ensure the defense and essential civilian industrial base has consistent access to the materiel it needs—and the private industries making products have the raw materials they need—during a war or national emergency.
Information about stockpile disposals—what was sold and at what value it was sold—is publicly available in monthly announcements published by DLA.
The role of the Market Impact Committee is to “advise the National Defense Stockpile Manager on the projected domestic and foreign economic effects of all acquisitions and disposals of materials from the stockpile...” The Committee must also balance market impact concerns with the statutory requirement to protect he U.S. Government against avoidable loss. See 50 U.S.C. § 98e (b)(2).
The FY 1993 NDAA directs the Committee to consult with industry representatives that produce, process, or consume the types of materials stored in the Stockpile as the National Defense Stockpile Manager.
The DLA must produce an Annual Materials Plan (AMP) proposing the maximum quantity of each listed material that may be acquired, disposed of, upgraded, converted, recovered, or sold by the DLA in a particular fiscal year.
With this notice, Commerce, on behalf of DLA, lists the quantities and types of activity—potential disposals, potential acquisitions, potential conversions (upgrade, rotation, reprocessing, etc.) or potential recovery (from government sources) —associated with each material in its proposed FY 2025 AMP.
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