NioCorp stock surge linked to Lockheed Martin scandium supply talks
NioCorp Developments (NASDAQ: NB) shares rose 17% on Tuesday after Reuters reported that Lockheed Martin, the world’s largest defense contractor, is in discussions to purchase critical minerals from U.S. mines as part of President Donald Trump’s initiative to reduce defence‑contractor reliance on China. The report noted that Lockheed is negotiating with NioCorp for scandium supplies, while Teck Resources and 5N Plus are in talks for germanium.
Preliminary scandium supply agreement
According to a source familiar with the agreement, NioCorp has signed a preliminary deal to deliver 15 metric tons of scandium per year to Lockheed Martin. This volume would represent roughly one‑quarter of global scandium demand, which the U.S. Geological Survey estimates at about 60 metric tons and is expected to rise. The scandium would be sourced from NioCorp’s Nebraska mine, which is scheduled to commence operations in 2028 with an anticipated annual production capacity of 100 metric tons.
Status and background of the relationship
The agreement remains subject to finalisation, although the two companies already share a relationship through a Pentagon‑funded research programme. Lockheed Martin manufactures key defence platforms such as the F‑35 Lightning II fighter jet and Patriot interceptor missiles, making the potential supply of domestically sourced scandium strategically significant.
Policy context and challenges
The negotiations follow an executive order signed by President Trump last month that tightens the waiver process allowing defence contractors to procure minerals from China and other prohibited foreign sources. The U.S. push aims to build a domestic mineral supply chain, yet the article highlights that Chinese suppliers have historically offered lower prices and that U.S. mining and processing capacity remains limited, posing potential hurdles to the deal’s execution.
Additional mineral talks
The Reuters piece also mentioned parallel discussions involving Teck Resources and 5N Plus for germanium supplies, another critical mineral used in military equipment such as infrared sensors.