U.S. Department of Defense Awards up to $10 Million to NioCorp's Subsidiary Elk Creek Resources Corp.

Rhea-AI Summary

NioCorp Developments Ltd. (NASDAQ:NB) announced that its subsidiary Elk Creek Resources Corp. has been awarded up to $10 million from the U.S. Department of Defense under the Defense Production Act Title III. The funding aims to establish America's first domestic scandium mine-to-master-alloy supply chain through the Elk Creek Critical Minerals Project in Nebraska.

The award is expected to support feasibility study engineering, reserve drilling, and updated cost estimates. This federal support is designed to facilitate NioCorp's pursuit of up to $800 million in debt financing from the U.S. Export-Import Bank, demonstrating a "whole of government" approach to critical minerals development.

The project aims to reduce U.S. dependence on China for critical minerals, as the Elk Creek Project will produce scandium, niobium, titanium, and other strategic materials essential for defense and civilian technologies.

Positive

• None.

Negative

• Funding is milestone-dependent and not guaranteed
• Project still requires significant additional financing to reach production
• Complex development timeline with multiple regulatory and technical requirements

Insights

Defense Industry Analyst

DoD's $10M award to NioCorp's subsidiary strengthens domestic critical minerals supply chain, potentially unlocking $800M in financing.

The $10 million Defense Production Act award to NioCorp's subsidiary represents a strategic milestone in establishing America's first domestic scandium supply chain. This funding directly addresses a critical national security vulnerability: the U.S. currently has zero domestic scandium production while China dominates global supply of this strategically vital metal.

The significance extends beyond the initial $10 million. This government endorsement is expected to facilitate up to $800 million in debt financing from the Export-Import Bank, demonstrating a coordinated whole-of-government approach to critical minerals development. The timing aligns with Executive Order 14241's objectives to increase domestic mineral production.

From a defense perspective, scandium offers compelling advantages that explain the Pentagon's interest. When alloyed with aluminum, scandium creates materials with superior strength-to-weight ratios that can replace heavier titanium components in aerospace applications. These properties are particularly valuable for next-generation aircraft, hypersonic weapons systems, and advanced propulsion technologies where weight reduction translates directly to performance gains.

What makes this project uniquely valuable is its polymetallic nature, targeting not just scandium but also niobium and titanium - all materials with limited domestic production that the defense industrial base currently sources predominantly from potential adversaries. The last U.S. scandium mining occurred in 1969, creating a half-century gap in domestic production capability that this project aims to address.

The bipartisan congressional support for this initiative, spanning both the Trump administration and members of Congress from both parties, indicates the project's alignment with broader national security priorities rather than partisan politics. This political consensus suggests potential long-term government backing for the Elk Creek Project's development.

Critical Minerals Supply Chain Expert

The DoD's $10 million DPA Title III award represents a significant development in addressing America's critical minerals vulnerability. Currently, the U.S. has no domestic scandium production, creating a complete dependency on foreign sources – primarily China, Russia, and Ukraine – for this strategically important element.

Scandium's value stems from its remarkable properties when alloyed with aluminum, creating materials that are stronger, more corrosion-resistant, and lighter than conventional alloys. These characteristics make scandium-aluminum alloys particularly valuable for aerospace applications where weight reduction directly translates to performance improvements and fuel efficiency.

The Elk Creek Project in Nebraska stands out as America's first polymetallic deposit targeting scandium, niobium, and titanium production. What makes this project particularly strategic is its potential to establish a complete mine-to-manufacture supply chain – not just extracting raw materials but developing the capability to produce finished alloys and components.

This integration with a defense prime contractor to develop qualified scandium alloy components signals a sophisticated approach to supply chain development. Rather than simply mining and exporting raw materials, this project aims to capture the higher value-added manufacturing activities within the domestic economy.

The potential $800 million EXIM Bank financing represents a force multiplier for the initial DoD investment. This coordinated funding approach demonstrates an important evolution in U.S. critical minerals strategy – moving beyond simply identifying vulnerabilities to actively financing domestic alternatives to foreign supply.

From a market perspective, establishing reliable domestic scandium production could expand applications beyond defense into commercial aerospace, high-performance sports equipment, and solid oxide fuel cells – markets that have been constrained by scandium's limited availability and price volatility rather than lack of technical merit.

U.S. DoD's Defense Production Act Title III Award Is Expected to Help Establish the Nation's First Domestic Scandium Mine-to-Master-Alloy Supply Chain

Funds Are Also Expected to Assist Elk Creek Resources Corp., a subsidiary of NioCorp, and a U.S. DoD Prime Contractor in Accelerating Development, Qualification, and Deployment of Aluminum-Scandium Alloy Components into Defense Aerospace Systems

DoD Support Is Expected to Facilitate the U.S. Export-Import Bank's Consideration of up to $800 Million in Debt Financing to NioCorp in a "Whole of Government" Approach to Critical Minerals Development

CENTENNIAL, CO / ACCESS Newswire / August 5, 2025 / NioCorp Developments Ltd. ("NioCorp" or the "Company") (NASDAQ:NB) is pleased to announce that its subsidiary Elk Creek Resources Corp. ("ECRC") has been awarded up to $10 million, subject to the achievement of certain milestones, from the U.S. Department of Defense ("DoD") via Title III of the Defense Production Act ("DPA") to support the establishment of a domestic scandium mine-to-manufacture supply chain via the Elk Creek Critical Minerals Project (the "Elk Creek Project") in southeast Nebraska.

The award to ECRC follows a federal appropriations plus-up in the Fiscal Year 2024 DoD 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 in Congress. The investment by DoD aligns with 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 production of scandium, niobium, titanium, and other critical minerals upon which the U.S. is completely or largely reliant on foreign producers.

"We want to thank President Trump, Vice President Vance, Defense Secretary Pete Hegseth, Senators Fischer and Ricketts, and many other government leaders for the opportunity to secure this important funding for the Elk Creek Critical Minerals Project," said Mark A. Smith, NioCorp CEO and Executive Chairman. "We believe this award and the development of the Elk Creek Project will position the U.S. as a global leader in the mining, processing, and manufacturing of scandium and scandium alloy components for defense and essential civilian technologies. In doing so, we will greatly reduce our dangerous dependence on China and other adversarial nations for scandium and other defense-critical minerals."

"By facilitating the Elk Creek Project's advancement to construction and eventual commercial operation, this DoD award will also help America ramp up domestic production of scandium, niobium, titanium, and other critical minerals that are vital to many defense and commercial technologies and which today are almost entirely produced in China," Mr. Smith added.

This DPA Title III award is expected to enable the completion of feasibility study-level engineering, additional reserve drilling, and updated cost estimates for the Elk Creek Project. In turn, these updates are expected to facilitate NioCorp's pursuit of project finance, including up to $800 million in debt financing from the U.S. Export-Import Bank ("EXIM"). This award and EXIM's potential financing would demonstrate an integrated "whole of government" approach to promoting domestic critical mineral production for defense and essential civilian technologies.

As part of this effort, ECRC expects to advance the integration of aluminum-scandium alloys into aerospace platforms in conjunction with a defense prime contractor. Successful development of the Elk Creek Project is expected to enable ECRC to become one of the first U.S. producers of scandium, which will enhance critical DoD systems such as advanced propulsion, next-gen energy systems, and multiple structural components and components for aircraft programs of record, hypersonic weapons systems, and future aircraft. Scarcity is an obstacle that has restricted wider industry adoption of scandium to modernize and improve the performance of major aerospace and hypersonic platforms.

Scandium alloys are increasingly replacing titanium alloy and legacy aluminum alloy components in DoD systems due to superior lightweight, high-strength characteristics. Geological scarcity, limited production infrastructure, and market failures drive scandium industrial shortages. China, Russia and Ukraine account for most output while the U.S. has virtually no domestic production and limited alloy development efforts. Establishing a vertically integrated domestic supply chain for scandium alloy production enables multiple avenues for innovation in defense aerospace.

The last recorded scandium mining in the United States occurred in 1969. Substantially all current scandium production, in any form, now occurs in China. DPA Title III investments like this one are key for reducing the U.S. defense industrial base's dependence on foreign sources for critical minerals.

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FOR MORE INFORMATION:

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

@NioCorp $NB #Niobium #Scandium #rareearth #neodymium #dysprosium #terbium #ElkCreek #China #exportban #Pentagon

ABOUT NIOCORP

Through its subsidiary Elk Creek Resources Corporation, NioCorp is developing 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 NioCorp's expectation that the DoD award will help the Company establish the first domestic scandium mine-to-master-alloy supply chain, assist in the development, qualification, and deployment of aluminum-scandium alloy components into defense aerospace systems, and facilitate EXIM's consideration of up to $800 million in debt financing to NioCorp; NioCorp's expectation that the award will enable the completion of feasibility study-level engineering, additional reserve drilling, and updated cost estimates for the Elk Creek Project; NioCorp's expectation that ECRC will advance the integration of aluminum-scandium alloys into aerospace platforms; NioCorp's expectation of producing niobium, scandium, and titanium, and the potential of producing rare earths, at the Elk Creek Project; 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 expectation that it will receive the full $10 million award from the DoD; NioCorp's ability to receive sufficient project financing for the construction and development of the Elk Creek Project on acceptable terms or at all; the future price of metals; the stability of the financial and capital markets; NioCorp's ability to service future debt, if any,and meet the payment obligations thereunder; and current estimates and assumptions regarding the benefits of NioCorp's business combination with GX Acquisition Corp. II (the "Business Combination") and the standby equity purchase agreement (the "Yorkville Equity Facility Financing Agreement" and, together with the Business Combination, the "Transactions") with YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP, and their 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 achieve the required milestones and receive the full $10 million award from the DoD; 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 receive a final commitment of financing from the EXIM or a debt guarantee from UK Export Finance on acceptable timelines, on acceptable terms, or at all; NioCorp's ability to recognize the anticipated benefits of the Transactions, including 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 Nasdaq listing standards; 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, or the Yorkville Equity Facility Financing Agreement 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 the Transactions 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; 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

How much funding did NioCorp (NASDAQ:NB) receive from the Department of Defense?

NioCorp's subsidiary received up to $10 million through the Defense Production Act Title III, subject to achieving certain milestones.

What is the purpose of the DoD funding for NioCorp's Elk Creek Project?

The funding aims to establish America's first domestic scandium mine-to-master-alloy supply chain and support feasibility studies, reserve drilling, and cost estimates.

How much potential financing could NioCorp receive from the U.S. Export-Import Bank?

NioCorp could receive up to $800 million in debt financing from the U.S. Export-Import Bank as part of the government's integrated approach to promoting domestic critical mineral production.

What critical minerals will NioCorp's Elk Creek Project produce?

The Elk Creek Project will produce scandium, niobium, titanium, and other critical minerals that are currently primarily sourced from China.

Where is NioCorp's Elk Creek Critical Minerals Project located?

The Elk Creek Project is located near Elk Creek, Nebraska, and will be the United States' first polymetallic deposit for these critical minerals.

Why is scandium production important for the U.S. defense industry?

Scandium alloys are crucial for defense aerospace systems, including advanced propulsion, next-gen energy systems, and components for aircraft and hypersonic weapons systems, currently facing supply constraints due to foreign dependence.