Pentagon Funds First Modern U.S. Scandium Mine in Strategic Shift

The Department of Defense announced that it has awarded millions of dollars to a company that will develop the nation’s “first polymetallic deposit targeting near-term production of Scandium (Sc), Niobium (Nb), Titanium (Ti), and other critical minerals.”

The $10 million award to Elk Creek Resources Corporation (ECRC), a subsidiary of NioCorp Developments Ltd., will support domestic mineral production amid China’s grip on the industry.

Through the award, ECRC will “advance the integration of aluminum-scandium alloys into aerospace platforms in conjunction with a defense prime contractor,” the DOD explained. If successful, the Elk Creek project will allow ECRS to become one of the first domestic producers of scandium, supporting U.S. defense and weapons systems.

The last-recorded scandium mining operation in the United States occurred in 1969, William “Greg” Davis, the Acting Director of the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate, noted.

“Scandium alloys are increasingly replacing titanium alloy and legacy aluminum alloy components in DoD systems due to their superior lightweight, high-strength characteristics,” Dr. Vic Ramdass, the Acting Assistant Secretary of Defense for Industrial Base Policy, said in a statement. “Geological scarcity and limited production infrastructure drive scandium industrial shortages. Establishing a vertically integrated domestic supply chain for scandium alloy production enables multiple avenues for innovation in defense aerospace.”

NioCorp CEO and Executive Chairman Mark Smith thanked the Trump administration for the “opportunity to secure this important funding for the Elk Creek Critical Minerals Project.”

“We believe this award and the development of the Elk Creek Project will position the U.S. as a global leader in the mining, processing, and manufacturing of scandium and scandium alloy components for defense and essential civilian technologies,” he said. “In doing so, we will greatly reduce our dangerous dependence on China and other adversarial nations for scandium and other defense-critical minerals.”

The award comes as the United States is also pursuing deep-sea mining endeavors to bolster mineral production.

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