NioCorp Developments to supply Lockheed Martin with 15 tons of scandium
NioCorp Developments is preparing to supply Lockheed Martin with 15 metric tons of scandium annually under a preliminary agreement, as the U.S. defense industry moves to secure domestic sources of critical minerals and reduce its dependence on China.
The proposed deal is part of a broader effort by Washington to strengthen American mineral supply chains. Lockheed Martin, the world’s largest defense contractor, is also negotiating potential germanium supply arrangements with Teck Resources and 5N Plus, according to people familiar with the discussions.
Scandium and germanium are both important to defense applications. Scandium can be combined with other metals to produce lightweight, corrosion-resistant alloys used in aerospace applications, while germanium is used in technologies including infrared sensors.
The push for domestic supplies has intensified as China has imposed tighter controls on exports of critical minerals. President Donald Trump has urged major defense contractors to enter long-term agreements with U.S. mining companies, while a recent executive order has made it more difficult for defense firms to obtain exemptions allowing them to purchase restricted minerals from China and other foreign suppliers.
The policy shift has also exposed the challenges facing the U.S. mining sector. American producers currently have limited mining and processing capacity, while Chinese suppliers often remain more competitive on price. Although numerous domestic projects are being developed, bringing them into production will require significant investment and time.
Under the preliminary arrangement, NioCorp would provide Lockheed with 15 metric tons of scandium each year from its proposed Elk Creek project in Nebraska. NioCorp expects the mine to begin operating by 2028 and has targeted annual scandium production of approximately 100 metric tons.
The agreement has yet to be finalized. However, the two companies already have ties through a research initiative backed by the U.S. Department of Defense.
At the proposed contracted volume, Lockheed’s purchases would represent a substantial share of the global scandium market. The U.S. Geological Survey estimates worldwide demand at roughly 60 metric tons annually, with consumption expected to increase.
NioCorp CEO Mark Smith said the company and Lockheed recognized the growing strategic importance of scandium to U.S. defense technology.
Lockheed said it valued NioCorp’s efforts to develop a domestic source of the metal.
The United States has not produced scandium from a domestic mine since 1969. Rio Tinto is currently the only scandium producer in North America, with annual production capacity of about nine metric tons, underscoring the scale of the supply challenge facing U.S. defense manufacturers.
