Defense contractor makes deal with company behind planned Nebraska rare minerals mine

JOHNSON COUNTY, Neb. —

Niocorp, a company planning to build a rare earth minerals mine near Elk Creek, announced a memorandum of understanding with defense contractor Lockheed Martin on Tuesday.

It’s a non-binding agreement to supply scandium oxide, a material not currently produced in the U.S. but vital to national security, Niocorp says.

The company plans to produce 100 tons of scandium oxide annually — more than the current global production, Niocorp President and CEO Mark Smith told KETV.

“You don’t need a whole lot of scandium to get all the benefits,” Smith said.

Lockheed Martin intends to purchase up to 15 tons of scandium oxide annually over the next decade. The material will be used to create aluminum alloys that are lighter and stronger, enhancing U.S. air defense capabilities.

“It makes them better fighter pilots and safer fighter pilots,” Smith said.

Smith explained that Niocorp received a $10 million Department of War grant last year to develop a joint scandium program with Lockheed Martin.

“Lockheed’s work has gone so well that they are now moving toward procurement of the scandium that they’ll need to produce that new technology for the Department of War,” Smith said.

Currently, the world’s limited scandium production comes from China, Smith said, but said he’s confident it’ll soon be produced in southeast Nebraska.

The first phase of the mine is expected to be completed by early October, with financing for the entire project anticipated by the end of the year. Full construction is projected to take about three years.

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