DOD Awards $193M in Contracts to 7 Vendors to Advance Domestic Critical Chemical Production; Laura Taylor-Kale Quoted

The Department of Defense has awarded seven companies contracts worth $192.5 million combined to develop domestic capabilities to manufacture critical chemicals.

The awards made through the Defense Production Act Investments program are expected to build national capacity for such chemicals by the end of 2027 as part of efforts to reduce foreign dependence and strengthen U.S. supply chains, DOD said Thursday.

“These critical chemical investments show the National Defense Industrial Strategy in action to ensure resilient supply chains and promote economic deterrence,” said Laura Taylor-Kale, assistant secretary for industrial base policy at DOD.

“The awards will result in the domestic production of military grade chemicals by establishing, expanding, and modernizing the manufacturing capacity of 22 critical chemicals used in defense systems, including non-energetic chemicals and precursors for both energetic and non-energetic chemicals,” added Taylor-Kale.

Barium nitrate, potassium chlorate, magnesium, titanium powder, zirconium powder and strontium peroxide are some of the critical chemicals that will be produced by the companies in Colorado, Louisiana, Oregon, California and Ohio. These chemicals have potential commercial applications in pharmaceuticals, energy, consumer products, automotive and agriculture, among other market segments.

The awardees and the amount of their respective contracts are listed below: