The agreement could support the development of a domestic U.S. scandium supply chain, although the proposed supply arrangement remains non-binding and depends on future project development.
Key Investor Takeaways – NioCorp Developments (NASDAQ:NB) signed a non-binding memorandum of understanding (MOU) with Lockheed Martin for the potential supply of up to 15 tonnes of scandium oxide annually over 10 years. – The agreement builds on the companies’ existing Pentagon-funded collaboration to develop scandium-based aluminum alloys for defense applications. – NioCorp plans to produce approximately 100 tonnes of scandium oxide annually from its Elk Creek Critical Minerals Project once financing and construction are completed. – The MOU supports NioCorp’s strategy of building a domestic scandium-to-defense supply chain in the U.S. – Because the agreement is non-binding, a definitive commercial contract has not yet been finalized
Why NB Stock Is in Focus NioCorp Developments (NASDAQ:NB) announced a memorandum of understanding with Lockheed Martin covering the potential purchase of up to 15 tonnes per year of scandium oxide, or aluminum-scandium alloy products, over a 10-year period. The proposed supply agreement builds on an existing joint development program between NioCorp and Lockheed Martin’s Skunk Works division focused on developing scandium-based aluminum alloy components for modern fighter aircraft. That effort is supported by a $10 million award under Title III of the Defense Production Act to NioCorp subsidiary Elk Creek Resources Corp.
According to the company, the Elk Creek Critical Minerals Project in Nebraska is expected to produce approximately 100 tonnes of scandium oxide annually after project financing and construction are completed. NioCorp also currently manufactures 4% aluminum-scandium master alloy in the United States using externally sourced scandium oxide and intends to expand production into finished aluminum-scandium alloy products. Management…