DoD Funds Domestic Scandium Supply Chain (Mine → Master Alloy) – $10M Award

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The U.S. Department of Defense has awarded $10 million under DPA Title III to Elk Creek Resources Corporation (ECRC) – a NioCorp unit. This will advance the domestic scandium supply chain in Nebraska, spanning ore through aluminum-scandium (Al-Sc) master alloy.

Announced first in August 2025, the award supports feasibility-level engineering, additional reserve drilling, and cost updates at the Elk Creek Critical Minerals Project. The Pentagon frames Al-Sc as increasingly displacing titanium and legacy aluminum in select components thanks to higher specific strength, better weldability, and fatigue performance. These are all attributes that matter in airframes, hypersonic structures, and next-gen energy systems.

This is a notable shift for U.S. sourcing. The DoD points out that America has not mined scandium since 1969, and today’s production is limited and mostly foreign. By pursuing vertical integration from mine to master alloy, the program aims to shorten lead times and stabilize availability for Al-Sc sheet, plate, weld wire, and additive feedstock. ECRC will also work with a defense prime to accelerate integration of Al-Sc into aerospace platforms, tightening the loop between material supply and qualified applications.

The announcement lands alongside a broader federal push to secure critical minerals. In a separate move, the Defense Logistics Agency outlined a plan to purchase up to $40 million of scandium oxide for the National Defense Stockpile. They will initially source from Rio Tinto’s Canadian operation that recovers scandium from titanium dioxide waste.

Together, these actions create near-term supply while building domestic capacity for the medium term. Without doubt, this is welcome news for program managers and machinists quoting Al-Sc parts.

The takeaway is practical. Expect growing interest in Al-Sc for weight-critical, weldable structures where titanium’s cost or fabrication complexity is a hurdle. Watch for updates on alloy specs, form factors, and qualification timelines, as those details will drive pricing, machining allowances, and delivery promises through 2026.

Ashton Henning