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See the full story · 1 sourcesThe world’s largest defence contractor, Lockheed Martin, is in negotiations for germanium (above) and scandium - both of which are used in military equipment ranging from aircraft components to infrared sensors.
Listen Summarise Lockheed Martin is negotiating with US miners NioCorp Developments, Teck Resources, and 5N Plus to secure domestic supplies of critical minerals scandium and germanium for military use. These deals support the US effort to reduce reliance on cheaper Chinese minerals amid supply-chain pressures and new executive orders restricting foreign sourcing. Challenges remain due to limited US mining capacity and pricing disputes, but contracts could boost domestic production and strengthen supply-chain security for defence technology. AI generated
WASHINGTON - Lockheed Martin is in talks to buy supplies of two critical minerals from US mines, two sources familiar with the discussions said, as President Donald Trump pressures defence contractors to cut reliance on China.
The world’s largest defence contractor is negotiating with NioCorp Developments for supply of scandium, and Teck Resources and 5N Plus 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 US push to build domestic mineral supply chains, but face hurdles: Chinese suppliers have long offered cheaper prices, and US mining and processing capacity remains limited.
Lockheed makes the F-35 Lightning II fighter jet, Patriot interceptor missiles and other weaponry for the US government.
As China has tightened controls on critical minerals exports in recent years, Trump has pressured Lockheed and its peers to support US mines with long-term supply deals.
In July, he signed an executive order making it harder for defence 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 US miners and processors are in their race to match China’s market dominance, even as dozens of US 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 tonnes 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 tonnes.
The agreement would need to be finalised, although the two companies have an existing relationship as part of a Pentagon-funded research programme.
The contracted volume would be roughly a quarter of global scandium demand, which the US Geological Survey estimates at about 60 metric tonnes and rising.
“Both companies recognise how important scandium has become to the future of American defence technology,” said Mark Smith, NioCorp’s CEO.
Lockheed said it appreciated “the work NioCorp is doing to establish a domestic source of scandium.”
The US has not mined scandium since 1969. Rio Tinto is the only North American scandium producer, with capacity to produce roughly nine metric tonnes 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 tonnes annually and rising.
The US imports more than half of its germanium needs.
Lockheed is also in germanium supply talks with Quebec-based 5N Plus, 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.
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