Lockheed in Talks to Secure Domestic Scandium and Germanium Supply; Rare Earth Stocks Rally
Alina Collins
Lockheed Martin is negotiating long-term deals with multiple miners to lock in domestically sourced scandium and germanium, sending USA Rare Earth up over 9% intraday — the clearest sign yet that major defense contractors are reaching upstream into raw materials as Washington pushes to cut China out of the defense supply chain.
Why is Lockheed buying minerals directly?
The Trump administration set a hard deadline: from 2027, defense contractors are in principle barred from sourcing critical minerals from China and other restricted countries.
This means → Lockheed can no longer just build weapons and wait for parts to arrive. It must secure mine-level supply or risk component shortages after 2027.
In plain terms = defense firms used to buy components; now policy is forcing them one step further upstream — straight to the mines.
How big is the scandium deal?
Lockheed plans to buy roughly 15 tonnes of scandium per year from NioCorp Developments, sourced from a Nebraska mine scheduled to start production in 2028.
Global scandium demand is only about 60 tonnes a year. This single contract would cover one-quarter of world demand.
Scandium — a rare metal that makes aluminum alloys stronger and more heat-resistant — is critical for fighter jets and other aerospace hardware. The U.S. has had no commercial scandium mining since 1969; North America's only current producer is Rio Tinto.
This reflects a degree of import dependence on niche-but-critical minerals far greater than most investors realize.
What does the germanium push look like?
Lockheed is also in talks with Teck Resources and 5N Plus for long-term germanium supply.
Germanium — essential for infrared detectors, night-vision systems, and missile guidance — would come via two routes: Teck mines in Alaska and processes in British Columbia; 5N Plus is building domestic U.S. germanium recycling and refining capacity.
This means → Lockheed is not betting on a single source. It is laying two parallel tracks — mining and recycling — to reduce single-supplier risk.
Does the timeline actually work?
The policy kicks in 2027. The scandium mine starts 2028. That leaves a one-year gap.
Industry insiders say U.S. domestic mining, smelting, and magnet-manufacturing capacity cannot meet demand in the near term. Temporary waivers for some Chinese minerals before 2027 remain likely.
In plain terms = Washington drew the line, but capacity cannot keep up. The market's real focus is not "is there a contract?" but "can the mine deliver on time?"
Why did rare-earth stocks rally?
After the news broke, USA Rare Earth rose over 9% intraday.
This means → the market reads Lockheed's move as a demand signal: a major defense prime willing to sign long-term, volume-locked contracts effectively underwrites future revenue for upstream miners.
For investors, the key verification point is whether contracted mines can produce within the policy window — if the 2028 mine slips, the contract's value drops sharply.
Content is for reference only, not financial advice.