Lockheed Martin Faces $7.6B F-35 Deal Uncertainty and Secures $20.6M Rare Earth Supply
LMT•Switzerland is reconsidering its 6 billion-franc F-35 deal by extending F-5 Tiger and F/A-18 service into the early 2030s, risking delivery delays for Lockheed Martin’s fighter program. REalloys’ $20.6 million investment in Saskatchewan facility secures 80% of NdPr, dysprosium and terbium output for defense magnets, bolstering Lockheed Martin’s supply chain.
1. Switzerland Reviews F-35 Purchase and Fleet Extension
Switzerland’s legislature is debating a motion to extend its F-5 Tiger and F/A-18 fleets into the early 2030s rather than proceed with a 6 billion-franc F-35 acquisition. Defense Minister Martin Pfister warns that fleet extensions would cost millions of francs and compromise security, while potential delays in F-35 deliveries could disrupt Lockheed Martin’s program schedule and backlog.
2. REalloys Investment Strengthens Rare Earth Supply
In early March, REalloys committed $20.6 million to upgrade the Saskatchewan Research Council’s rare earth processing facility to target roughly 525 tonnes of NdPr, 30 tonnes of dysprosium and 15 tonnes of terbium annually. REalloys secured exclusive rights to up to 80% of the expanded output, locking in defense-grade magnet materials crucial for Lockheed Martin’s future manufacturing and sustainment needs.
