Key facts
- Lockheed Martin is negotiating to purchase scandium and germanium from U.S. mines.
- The defense contractor is in discussions with NioCorp Developments for scandium and Teck Resources and 5N Plus for germanium.
- These critical minerals are essential for military equipment.
- President Donald Trump has been pressuring defense contractors to reduce their reliance on China.
- Trump recently signed an executive order restricting the use of minerals from China and other foreign suppliers by defense contractors.
Lockheed Martin is in discussions to secure supplies of scandium and germanium from U.S. mines, a move driven by President Donald Trump's administration's push to reduce reliance on China for critical minerals. The defense contractor is negotiating with NioCorp Developments for scandium and with Teck Resources and 5N Plus for germanium, both of which are vital for military applications.
This initiative aligns with Trump's broader strategy to bolster domestic supply chains for defense contractors. Last month, he signed an executive order that restricts the ability of these companies to use minerals sourced from China and other prohibited foreign countries, highlighting the U.S.'s lagging capacity compared to China's market dominance.
NioCorp has a preliminary agreement to supply Lockheed with 15 metric tons of scandium annually from its Nebraska mine, which is slated to open by 2028. This volume represents a significant portion of global demand. Separately, Lockheed has been in talks with Teck Resources and 5N Plus for germanium supply for over a year, with pricing and contract length being key negotiation points.
Chinese suppliers have historically offered lower prices for these minerals due to differing regulatory and mining practices. Western governments are actively seeking to establish regional mineral pricing independent of Chinese influence.