U.S. Invests $10M to Restart Domestic Scandium Production

The U.S. Department of Defense announced a $10 million award to Elk Creek Resources Corporation (ECRC), a subsidiary of NioCorp Developments Ltd., to support domestic production of scandium and other critical minerals.

The funding was granted under Title III of the Defense Production Act (DPA) as part of efforts to strengthen U.S. mineral independence.

Located near Elk Creek, Nebraska, ECRC is developing the nation’s first polymetallic deposit focused on near-term production of scandium, niobium, titanium, and other critical materials. The award supports Executive Order 14241, issued on March 20, 2025, which calls for immediate action to increase U.S. mineral production.

“Scandium alloys are increasingly replacing titanium alloy and legacy aluminum alloy components in DoD systems due to their superior lightweight, high-strength characteristics,” said Dr. Vic Ramdass, Acting Assistant Secretary of Defense for Industrial Base Policy. “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.”

The DPA investment will help fund engineering, additional drilling, and updated cost estimates for ECRC’s Elk Creek Critical Minerals Project. It will also support work with a major defense contractor to integrate aluminum-scandium alloys into advanced military aerospace platforms.

If successful, the Elk Creek site could make ECRC one of the first scandium producers in the United States. The material is considered vital for structural components in advanced propulsion, next-generation energy systems, and key aircraft and hypersonic weapon systems.

“The last recorded scandium mining in the United States occurred in 1969, with substantially all current scandium production, in any form, now occurring in China,” said William “Greg” Davis, Acting Director of the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate. “DPA Title III investments like this one are key for reducing the U.S. defense industrial base’s dependence on foreign sources for critical minerals.”

The ECRC funding is one of ten DPA Title III awards made this fiscal year, totaling $336.4 million. These projects have been matched by $88 million in cost-sharing from recipients.