Pentagon Funds Joint Development Effort with NioCorp and Lockheed Martin to Develop a Scandium-Based Defense Technology

Rhea-AI Summary

NioCorp (NASDAQ:NB) and Lockheed Martin Skunk Works will develop prototype aluminum-scandium alloy components for fighter aircraft under a Pentagon-funded program announced on October 23, 2025.

Funding of $10 million is provided via Title III of the Defense Production Act to establish a domestic scandium mine-to-master-alloy supply chain tied to NioCorp's Elk Creek project in Nebraska. NioCorp expects to produce approximately 100 tonnes per year of scandium oxide when operational. No further technical details were released.

Positive

• $10 million Pentagon Title III award
• Program targets prototype aluminum-scandium alloy components
• Supports domestic scandium mine-to-alloy supply chain
• Elk Creek project tied to near-term scandium production
• Expected ~100 tonnes/year scandium oxide capacity

Negative

• No technical or delivery timelines disclosed
• Prototype scope and commercialization terms not released

Insights

Defense Materials Strategist

DoD funding and a Lockheed Skunk Works partnership support domestic scandium supply and prototype alloy development.

The agreement pairs NioCorp with Lockheed Martin Skunk Works under DoD funding to develop prototype aluminum–scandium alloy components, supported by a $10 million Title III award to build a domestic mine-to-alloy chain. The program targets prototype parts that could use scandium produced from the Elk Creek project, and management states eventual production of approximately 100 tonnes per year of scandium oxide once the mine is online.

Key dependencies include successful scale‑up at Elk Creek, qualification of prototype components for advanced aircraft, and continuation of dedicated DoD funding. Risks are operational and schedule slippage at the mine, technical challenges moving from oxide to master alloy and finished parts, and limited program details disclosed to date.

Watch for concrete milestones such as prototype delivery dates, technical qualification steps for alloy and components, and formal schedules from Elk Creek on production ramp. Near‑term signals to monitor include further DoD announcements, Lockheed technical milestones, and any production timelines tied to the Elk Creek permitting and construction phases within the next 12–36 months.

CENTENNIAL, CO / ACCESS Newswire / October 23, 2025 / NioCorp Developments Ltd. ("NioCorp" or the "Company") (NASDAQ:NB), a leading U.S. critical minerals developer, has entered into an agreement with Lockheed Martin to support the development of a scandium-based defense technology with its Skunk Works^® advanced development programs division. The program is being funded by the U.S. Department of War ("DoW").

The program is designed to produce prototype components of aluminum-scandium alloy that will expand the capabilities of modern fighter aircraft. No additional details on the development program were released.

"We are pleased to collaborate with NioCorp on this important initiative that will connect domestic critical materials mining through the value-chain to advanced materials to provide advanced capabilities for the warfighter," said OJ Sanchez, vice president and general manager, Lockheed Martin Skunk Works^®.

"NioCorp is pleased to be working with Skunk Works in an effort to harness the groundbreaking power of scandium in a new defense technology for the Pentagon," said Mark A. Smith, NioCorp CEO and Chairman. "When NioCorp comes online to produce approximately 100 tonnes per year of scandium oxide - after being 100% dependent upon foreign producers for so many years for our scandium - that will be a game changer for both U.S. defense and commercial applications. I look forward to seeing the results of this prototype component manufacturing initiative come to fruition."

Funding for the effort is being provided by the Pentagon as part of a $10 million agreement via Title III of the Defense Production Act to support the establishment of a domestic scandium mine-to-master-alloy supply chain via the Company's Elk Creek Critical Minerals Project in southeast Nebraska.

The award to NioCorp's operating subsidiary, Elk Creek Resources Corp., ("ECRC") follows a federal appropriations plus-up in the Fiscal Year 2024 DoW appropriations bill that was championed by U.S. Senator Deb Fischer (R-Neb.), other Members of the Nebraska Congressional delegation, and both Democrats and Republicans across the Congress. The investment by DoW supports President Trump's March 20, 2025, Executive Order 14241 on Immediate Measures to Increase American Mineral Production's goal to facilitate domestic mineral production.

Located near Elk Creek, Nebraska, ECRC is developing the United States' first polymetallic deposit targeting near-term production of scandium, niobium, titanium, and light and heavy magnetic rare earth oxides (NdPr, Dy & Tb), all of which are critical minerals upon which the U.S. is completely or largely reliant on foreign producers.

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FOR MORE INFORMATION:

Jim Sims, Corporate Communications Officer, NioCorp Developments Ltd., (720) 334-7066, jim.sims@niocorp.com

Alex Guthrie, Director of Investor Relations, NioCorp Developments Ltd., (720) 334-7066, aguthrie@niocorp.com

@NioCorp $NB @Lockheed #Niobium #Scandium #rareearth #neodymium #dysprosium #terbium #ElkCreek

ABOUT NIOCORP

NioCorp is developing a critical minerals project in Southeast Nebraska (the "Elk Creek Project") that is expected to produce niobium, scandium, and titanium. The Company also is evaluating the potential to produce several rare earths from the Elk Creek Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of Neodymium-Iron-Boron magnets, which are used across a wide variety of defense and civilian applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively "forward-looking statements"). Forward-looking statements may include, but are not limited to, statements regarding potential benefits resulting from the joint development effort with Lockheed Martin, the Company's expectation of producing niobium, scandium, and titanium, and the potential of producing rare earths, at the Elk Creek Project, including production levels; and NioCorp's ability to secure sufficient project financing to complete construction of the Elk Creek Project and move it to commercial operation. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements are based on the current expectations of the management of NioCorp and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to: NioCorp's ability to receive sufficient project financing for the construction of the Elk Creek Project on acceptable terms, or at all; the future price of metals; the stability of the financial and capital markets; and current estimates and assumptions regarding the benefit of the standby equity purchase agreement (the "Yorkville Equity Facility Financing Agreement") with YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP, and its benefits. Such expectations and assumptions are inherently subject to uncertainties and contingencies regarding future events and, as such, are subject to change. Forward-looking statements involve a number of risks, uncertainties or other factors that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made by NioCorp with the Securities and Exchange Commission and with the applicable Canadian securities regulatory authorities and the following: NioCorp's ability to operate as a going concern; NioCorp's requirement of significant additional capital; NioCorp's ability to receive sufficient project financing for the construction of the Elk Creek Project on acceptable terms, or at all; NioCorp's ability to achieve the required milestones and receive the full $10.0 million in reimbursement under DoD Agreement; NioCorp's ability to receive a final commitment of financing from the Export-Import Bank of the United States or other debt financing or financial support on acceptable timelines, on acceptable terms, or at all; NioCorp's ability to access the full amount of the expected net proceeds under the Yorkville Equity Facility Financing Agreement; NioCorp's ability to continue to meet the listing standards of The Nasdaq Stock Market LLC; risks relating to NioCorp's common shares, including price volatility, lack of dividend payments and dilution or the perception of the likelihood of any of the foregoing; the extent to which NioCorp's level of indebtedness and/or the terms contained in agreements governing NioCorp's indebtedness, if any, the Yorkville Equity Facility Financing Agreement or other agreements may impair NioCorp's ability to obtain additional financing, on acceptable terms, or at all; covenants contained in agreements with NioCorp's secured creditors that may affect its assets; NioCorp's limited operating history; NioCorp's history of losses; the material weaknesses in NioCorp's internal control over financial reporting, NioCorp's efforts to remediate such material weaknesses and the timing of remediation; the possibility that NioCorp may qualify as a passive foreign investment company under the U.S. Internal Revenue Code of 1986, as amended (the "Code"); the potential that NioCorp's business combination with GX Acquisition Corp. II and the Yorkville Equity Facility Financing Agreement could result in NioCorp becoming subject to materially adverse U.S. federal income tax consequences as a result of the application of Section 7874 and related sections of the Code; cost increases for NioCorp's exploration and, if warranted, development projects; a disruption in, or failure of, NioCorp's information technology systems, including those related to cybersecurity; equipment and supply shortages; variations in the market demand for, and prices of, niobium, scandium, titanium and rare earth products; current and future offtake agreements, joint ventures, and partnerships, including our ability to negotiate extensions to existing agreements or to enter into new agreements, on favorable terms or at all; NioCorp's ability to attract qualified management; estimates of mineral resources and reserves; mineral exploration and production activities; feasibility study results; the results of metallurgical testing; the results of technological research; changes in demand for and price of commodities (such as fuel and electricity) and currencies; competition in the mining industry; changes or disruptions in the securities markets; legislative, political or economic developments, including changes in federal and/or state laws that may significantly affect the mining industry; trade policies and tensions, including tariffs; inflationary pressures; the impacts of climate change, as well as actions taken or required by governments related to strengthening resilience in the face of potential impacts from climate change; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the timing and reliability of sampling and assay data; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns, and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining, or development activities; management of the water balance at the Elk Creek Project site; land reclamation requirements related to the Elk Creek Project; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; claims on the title to NioCorp's properties; potential future litigation; and NioCorp's lack of insurance covering all of NioCorp's operations.

Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of NioCorp prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

All subsequent written and oral forward-looking statements concerning the matters addressed herein and attributable to NioCorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Except to the extent required by applicable law or regulation, NioCorp undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

SOURCE: NioCorp Developments Ltd.

View the original press release on ACCESS Newswire

FAQ

What did NioCorp (NB) announce on October 23, 2025 about Lockheed Martin?

NioCorp announced a joint program with Lockheed Martin Skunk Works to develop aluminum-scandium alloy prototype components funded by the Pentagon.

How much Pentagon funding did NioCorp (NB) receive for the scandium program?

The program is funded with $10 million via Title III of the Defense Production Act.

What production capacity of scandium oxide does NioCorp (NB) expect from Elk Creek?

NioCorp stated an expected production of approximately 100 tonnes per year of scandium oxide when the project comes online.

How will the NioCorp-Lockheed program affect U.S. defense supply chains for scandium?

The award aims to establish a domestic mine-to-master-alloy supply chain for scandium to reduce reliance on foreign producers.

Does the announcement specify timelines or delivery milestones for NB prototypes?

No, the announcement did not provide technical details, timelines, or delivery milestones.