Lockheed seeks U.S. mineral supplies after Trump supply-chain push, sources say

Lockheed makes the F-35 Lightning II fighter jet, Patriot interceptor missiles and other weaponry for the U.S. government. As China has tightened controls on critical minerals exports in recent years, Trump has pressured Lockheed and its peers to support U.S. mines with long-term supply deals. Last month, he signed an executive order making it harder for defense contractors to obtain waivers that had allowed them for years to buy minerals from China and other prohibited foreign suppliers. That order has highlighted how far behind U.S. miners and processors are in their race to match China's market dominance, even as dozens of U.S. projects for a range of minerals are under development, Reuters reported last week. Colorado-based NioCorp Developments has signed a preliminary deal to supply Lockheed with 15 metric tons per year of scandium, one of the 17 rare earths that can be used to make lightweight, corrosion-resistant alloys for aircraft, according to a source familiar with the agreement and details seen by Reuters. These have not been previously reported. NioCorp will supply the metal from its Nebraska mine, slated to open by 2028 with annual production of 100 metric tons. The agreement would need to be finalized, although the two companies have an existing relationship as part of a Pentagon-funded research program. The contracted volume would be roughly a quarter of global scandium demand, which the U.S. Geological Survey estimates at about 60 metric tons and rising. "Both companies recognize how important scandium has become to the future of American defense technology," said Mark Smith, NioCorp's CEO. Lockheed said it appreciated "the work NioCorp is doing to establish a domestic source of scandium." The U.S. has not mined scandium since 1969. Rio Tinto `RIO.L` is the only North American scandium producer, with capacity to produce roughly nine metric tons annually. Separately, Lockheed is in talks with Teck Resources for a supply of germanium, used to make infrared sensors and other military equipment, a second person familiar with those negotiations said. Teck mines and produces a zinc and germanium concentrate from its Red Dog mine in Alaska. That concentrate is then smelted in British Columbia and the two metals are separated. Teck does not break out its annual germanium production but has called itself the largest North American producer and fourth-largest globally. The USGS estimates that global germanium consumption is roughly 60 metric tons annually and rising. The U.S. imports more than half of its germanium needs. Lockheed is also in germanium supply talks with Quebec-based 5N Plus `VNP.TO`, which earlier this year received Pentagon funding to process the metal from recycled feedstock in Utah, the second source added. "What Lockheed basically wants is a long-term supply chain security," according to the second source. "Because they are under pressure, so they really want to know if the supply is coming from China or elsewhere." Negotiations with both Teck and 5N have been going on for more than a year. Pricing and the length of the contracts have been sticking points, according to the source. Representatives for 5N were not immediately available to comment. Teck declined to comment on specific commercial agreements, but said it has agreed to work with the Canadian government to increase germanium processing in British Columbia. Asked about the germanium discussions, Lockheed said it continuously assesses "the global critical minerals supply chain to ensure access to materials that support our customers' missions." Chinese critical minerals prices have for years been cheaper than those from Western sources due to differences in mining practices, regulatory standards and other factors. Reuters reported earlier this year that Western governments are trying to set regional minerals prices free from Chinese interference. Lockheed Martin `LMT.N` is in talks to buy supplies of two critical minerals from U.S. mines, two sources familiar with the discussions said, as President Donald Trump pressures defense contractors to cut reliance on China. The world's largest defense contractor is negotiating with NioCorp Developments `NB.O` for supply of scandium, and Teck Resources `TECKb.TO` and 5N Plus `VNP.TO` for supply of germanium, both of which are used in military equipment ranging from aircraft components to infrared sensors, the sources said. The deals would mark a significant step in the U.S. push to build domestic mineral supply chains, but face hurdles: Chinese suppliers have long offered cheaper prices, and U.S. mining and processing capacity remains limited.

Lockheed seeks U.S. mineral supplies after Trump supply-chain push, sources say

NioCorp preliminary scandium deal

Germanium negotiations with Teck and 5N Plus

Lockheed in talks for scandium and germanium supplies

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