Lockheed is looking for domestic mineral supply
Lockheed Martin is in talks to secure US-linked supplies of scandium and germanium, two critical minerals used in defense systems ranging from aircraft components to infrared sensors.
The company is negotiating with NioCorp Developments for scandium supply and with Teck Resources and 5N Plus for germanium, according to Reuters.
The discussions follow a broader White House push to force defense contractors to reduce dependence on Chinese critical minerals. Lockheed is the world’s largest defense contractor and makes systems including the F-35 Lightning II fighter jet and Patriot interceptor missiles.
NioCorp could supply scandium from Nebraska
NioCorp has signed a preliminary agreement to supply Lockheed with 15 metric tons per year of scandium, according to Reuters.
The scandium would come from NioCorp’s planned Nebraska mine, which is expected to open by 2028 with annual production capacity of 100 metric tons.
That proposed Lockheed volume would be meaningful. The US Geological Survey estimates global scandium demand at roughly 60 metric tons per year and rising, which means the preliminary agreement would represent about a quarter of current global demand.
The US has not mined scandium since 1969. Rio Tinto is currently the only North American scandium producer, with capacity of about nine metric tons per year.
Germanium talks include Teck and 5N Plus
Lockheed is also in talks with Teck Resources for germanium supply.
Teck produces zinc and germanium concentrate at its Red Dog mine in Alaska. The concentrate is then processed in British Columbia, where the metals are separated.
Teck does not disclose annual germanium production, but the company has described itself as the largest North American producer and the fourth-largest globally. The US Geological Survey estimates global germanium consumption at roughly 60 metric tons per year and rising.
Lockheed is also discussing germanium supply with Quebec-based 5N Plus, which received Pentagon funding earlier this year to process germanium from recycled feedstock in Utah.
A source told Reuters that Lockheed wants “long-term supply chain security” and is under pressure to know whether supply is coming from China or another source.
The defense supply chain is being forced to change
The pressure is coming from policy.
Last month, the US president signed an executive order making it harder for defense contractors to obtain waivers that allowed them to buy minerals from China and other prohibited foreign suppliers. The White House has said waivers should only be granted after contractors show an exhaustive effort to avoid Chinese materials and a plan to move away from that supply.
That creates a direct problem for defense contractors.
Chinese suppliers have long offered lower prices than Western producers. US mining and processing capacity is still limited. Many domestic projects are under development, but building mines, processors and refining capacity takes years.
The new rules are pushing large defense companies to sign real offtake agreements instead of waiting for government stockpiles or future projects.
Critical minerals are becoming defense contracts
Scandium and germanium are small markets, but they sit inside large strategic systems.
Scandium can be used in lightweight, corrosion-resistant aluminum alloys for aircraft. Germanium is used in infrared sensors and other military applications. Both are tied to defense platforms where reliability and sourcing matter.
The problem is scale. These are not oil or copper markets with deep supply chains and flexible logistics. A single agreement can represent a large share of global demand.
That is what makes the Lockheed discussions notable. The company is not simply reviewing supply risk. It is moving toward direct relationships with miners and processors.
Pricing is still a sticking point
Negotiations with Teck and 5N Plus have been underway for more than a year, according to Reuters. Pricing and contract length remain key issues.
Western material is often more expensive than Chinese supply because of different mining practices, regulatory standards and processing costs. That price gap has slowed the buildout of non-Chinese supply chains for years.
Lockheed’s talks show the market is changing. If defense contractors need secure domestic or allied supply, they may have to accept higher prices and longer-term commitments.
The minerals are small. The policy shift is not.
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