The Department of Defense has awarded $10 million to Elk Creek Resources Corporation (ECRC), a subsidiary of NioCorp Developments Ltd., to support the development of a domestic supply chain for scandium and other critical minerals. The funding, provided under Title III of the Defense Production Act, is part of an effort to increase U.S. mineral production in line with Executive Order 14241 issued on March 20, 2025.
ECRC operates near Elk Creek, Nebraska, where it is working on the United States' first polymetallic deposit focused on producing scandium, niobium, titanium, and additional minerals needed for defense applications. The investment aims to address shortages in scandium supply caused by geological scarcity and limited production infrastructure.
"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 award will allow ECRC to complete feasibility-level engineering studies, conduct more reserve drilling, and update cost estimates related to its Elk Creek Critical Minerals Project. ECRC will also work with a defense prime contractor to integrate aluminum-scandium alloys into aerospace platforms. If successful, ECRC could become one of the first U.S.-based producers of scandium—a material that enhances advanced propulsion systems, next-generation energy solutions, structural aircraft components, hypersonic weapons systems, and future aircraft programs.
According to Mr. William "Greg" Davis, Acting Director of the Manufacturing Capability Expansion and Investment Prioritization directorate: "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. 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."
This decision is part of ten awards made by the DPA Purchases Office since the start of fiscal year 2025 totaling $336.4 million; recipients have contributed an additional $88 million since then as cost shares.
The DPA Purchases Office operates under oversight from the Manufacturing Capability Expansion and Investment Prioritization directorate (MCEIP). More information about MCEIP can be found at https://www.businessdefense.gov/ibr/mceip/index.html.
The Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)) works with partners domestically and internationally to maintain a secure industrial base supporting military needs both now and into the future. OASD(IBP) uses mechanisms such as the Defense Industrial Base Consortium Other Transaction Agreement (DIBC OTA) to encourage research or prototype projects focused on supply chain resiliency. Details about DIBC OTA are available at https://www.dibconsortium.org.
