Source:
Morningstar News, 05/08/2025
The U.S. Department of Defense has awarded $10 million to Elk Creek Resources, a subsidiary of NioCorp Developments, to advance the development of a fully domestic scandium supply chain. The funding provided under Title III of the Defense Production Act, will support detailed engineering work, additional drilling, updated feasibility studies, and refined cost estimates for the Elk Creek Project in Nebraska. This initiative is seen as a critical step toward reestablishing U.S. production of scandium—a rare and strategically important metal not mined domestically since 1969—reducing reliance on imports from countries such as China, Russia, and Ukraine.
Scandium is valued for its ability to significantly strengthen aluminum alloys without adding weight, making it essential for aerospace, defense, automotive, and clean energy technologies. The Elk Creek Project aims to create an integrated “mine-to-master-alloy” production chain, ensuring that the U.S. can independently supply key industries with this critical material. The project also includes niobium and titanium production, further enhancing its strategic relevance. Given that scandium supply is currently concentrated in a handful of global producers and subject to geopolitical risks, the U.S. move signals a broader effort to secure its industrial base for advanced manufacturing and defense applications.
Beyond the technical and economic dimensions, the project’s long-term success will hinge on stakeholder participation and maintain a social license to operate in the Nebraska communities where it will be developed. Early engagement with local residents, environmental groups, and state authorities will be crucial to address concerns over land use, water management, and environmental impacts. Transparent communication, benefit-sharing mechanisms, and commitments to sustainability will not only facilitate permitting and operational stability but also help ensure that the project becomes a model for how critical mineral development can align national security goals with community trust and environmental stewardship.