Lockheed Martin (NYSE:LMT) is reportedly looking to buy supplies of critical minerals from North American producers as the US steps up efforts to reduce reliance on imports for its defence industry.
According to Reuters, the defence giant is in talks to source scandium from NioCorp Developments (NASDAQ:NB) and germanium from Canada’s Teck Resources (TSX:TECK.A/TECK.B) and 5N Plus (TSX:VNP).
The report follows US President Donald Trump’s executive order last month limiting waivers that allow defence contractors to source certain critical minerals from designated foreign countries.
The order forms part of the Trump administration’s broader push to strengthen domestic supply chains and reduce dependence on China, which dominates production of many of the critical minerals used in defence, aerospace, and advanced technologies.
With China tightening export controls in recent years, Washington is encouraging major contractors such as Lockheed, which manufactures the F-35 Lightning II fighter jet, Patriot missile systems, and other military equipment, to source more materials from domestic and allied suppliers.
Scandium agreements
NioCorp is developing its Elk Creek project in southeast Nebraska, which the company says contains several critical minerals designated by the US government.
According to Reuters, NioCorp has signed a preliminary agreement to supply Lockheed with 15 tonnes of scandium a year, equivalent to about a quarter of current global scandium demand based on US Geological Survey estimates.
The US has not mined scandium since 1969, while Rio Tinto (ASX: RIO) is currently the only producer of scandium in North America.
Lockheed also signed an agreement last year with Australia’s Sunrise Energy Metals (ASX:SRL) to potentially source a similar volume of scandium from the company’s Syerston project in New South Wales.
Germanium discussions
Additionally, Reuters reported that Lockheed has been in discussions with Teck and 5N Plus for more than a year over supplies of germanium, another critical mineral widely used in military electronics, infrared sensors, and other defence applications.
The US currently imports more than half of its germanium requirements, according to the US Geological Survey.
Teck produces germanium from concentrates mined at its Red Dog operation in Alaska, while 5N Plus processes recycled germanium feedstock at its facility in Utah.
Write to Jackson Chen at Mining.com.au
Image: Lockheed Martin
Add to Watch List:Sunrise Energy MetalsTeckFeNioCorp DevelopmentsUS Geological SurveyLockheed MartinCritical Minerals