NioCorp shares surge after securing $10M from Defense Department for scandium supply.

NioCorp shares rose 3.3% after the US Department of Defense awarded $10M to support domestic scandium supply chain development through Elk Creek Resources, NioCorp's subsidiary. The funding aims to secure a reliable domestic source of scandium, a rare earth metal used in advanced aerospace and defense applications.

The U.S. Department of Defense (DoD) has awarded $10 million to Elk Creek Resources, a subsidiary of NioCorp Developments Ltd. (NioCorp), to develop a domestic scandium supply chain. The funding, announced on August 5, 2025, is part of a broader effort to reduce the U.S. dependence on foreign sources for critical minerals [1].

The award, made under Title III of the Defense Production Act (DPA), will support engineering, drilling, and feasibility studies at the Elk Creek project in Nebraska. The goal is to establish the United States' first domestic mine-to-master-alloy supply chain for scandium, niobium, and titanium, all critical minerals used in defense aerospace systems [2].

Shares of NioCorp rose 3.3% in premarket trading following the announcement. The company expects the funding to help accelerate the development, qualification, and deployment of aluminum-scandium alloy components into defense aerospace systems [3]. The project is also aligned with President Trump's March 20, 2025, Executive Order 14241, which aims to facilitate domestic mineral production [4].

The DoD's investment is part of a broader strategy to reduce the U.S. reliance on China and other foreign suppliers of critical minerals. The U.S. has not mined scandium since 1969, and most of the global supply comes from China, Russia, and Ukraine [3]. By establishing a domestic supply chain, the U.S. seeks to enhance its national security and economic resilience.

References:
[1] https://www.defense.gov/News/Releases/Release/Article/4264389/department-of-defense-awards-10-million-to-develop-a-domestic-mine-to-master-al/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TX17L:0-us-awards-niocorp-unit-10-million-to-build-scandium-supply-chain/
[3] https://www.reuters.com/business/aerospace-defense/us-awards-niocorp-unit-10-million-build-scandium-supply-chain-nebraska-2025-08-05/
[4] https://www.morningstar.com/news/accesswire/1056508msn/us-department-of-defense-awards-up-to-10-million-to-niocorps-subsidiary-elk-creek-resources-corp