The Defense Department awarded Nebraska-based Elk Creek Resources Corp. (ECRC) $10 million to develop the first U.S. polymetallic deposit targeting near-term production for critical minerals including scandium, niobium and titanium, DOD announced today.
“Geological scarcity and limited production infrastructure drive scandium industrial shortages,” Vic Ramdass, acting assistant secretary of defense for industrial base policy, said. “Establishing a vertically integrated domestic supply chain for scandium alloy production enables multiple avenues for innovation in defense aerospace.”
The award -- granted via Title III of the Defense Production Act -- will allow ECRC to finish its feasibility study-level engineering, perform additional reserve drilling and update cost estimates for its Elk Creek Critical Minerals Project, DOD said.
That project will allow ECRC to integrate aluminum-scandium alloys into aerospace platforms via a defense prime contractor. Scandium alloys have begun replacing titanium alloy and aluminum alloy components in DOD systems since they are more lightweight and high-strength, Ramdass said.
Scandium has applications in DOD systems including advanced propulsion, next-generation energy systems, hypersonic weapon systems and aircraft components, DOD said.
The news comes as the Chinese Commerce Ministry continues to ramp up restrictions on exports of critical minerals vital to defense applications, prompting the Trump administration to issue an executive order in March aimed at accelerating domestic mineral production.
If successful, the Elk Creek project will make ECRC -- a NioCorp Developments Ltd. subsidiary -- one of the first scandium producers in the U.S., according to DOD.
The ECRC investment marks the latest of 10 awards from the DPA Purchases Office totaling more than $336 million since the beginning of fiscal year 2025, DOD said.