Lockheed Martin in Talks to Secure US Critical Minerals Amid Push to Cut China Reliance, Sources Say

Lockheed Martin is in negotiations to purchase supplies of the critical minerals scandium and germanium from U.S. and North American mines, according to two sources familiar with the matter. The move follows an executive order from the Trump administration pressuring defense contractors to reduce their supply chain reliance on China.

Securing the Defense Supply Chain

The world's largest defense contractor is reportedly in discussions with several companies to secure these materials, which are vital for military hardware ranging from lightweight aircraft components to advanced infrared sensors. This initiative represents a significant step in the broader U.S. effort to build a domestic supply chain for minerals essential to national security.

The push comes after a recent executive order made it more difficult for defense firms to obtain waivers that previously allowed them to buy minerals from China and other prohibited foreign sources. However, the effort faces challenges, as U.S. mining and processing capacity remains limited and Chinese suppliers have historically offered lower prices.

Details of the Negotiations

According to the sources, the talks involve multiple potential suppliers for two key minerals.

Scandium

Lockheed has a preliminary agreement with Colorado-based NioCorp Developments to purchase 15 metric tons of scandium per year, a source familiar with the deal told Reuters. The material would be sourced from NioCorp's Nebraska mine, which is scheduled to open by 2028.

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• The contracted volume would represent about a quarter of the current global demand for scandium, which the U.S. Geological Survey (USGS) estimates at roughly 60 metric tons annually.
• "Both companies recognize how important scandium has become to the future of American defense technology," said Mark Smith, NioCorp’s CEO.

Germanium

Separately, Lockheed is in discussions with Teck Resources and Quebec-based 5N Plus for a supply of germanium, which is used in infrared sensors.

• Teck Resources mines a zinc and germanium concentrate from its Red Dog mine in Alaska.
• 5N Plus recently received Pentagon funding to process the metal from recycled materials in Utah.
• Negotiations with both companies have been ongoing for over a year, with pricing and contract length cited as sticking points, one source said.

Market Context and Implications

These negotiations highlight the strategic shift by major U.S. defense firms to de-risk their supply chains amid geopolitical tensions. The U.S. currently imports more than half of its germanium and has not mined scandium since 1969, according to the USGS.

Lockheed's potential long-term offtake agreements could provide the financial certainty needed for domestic mining projects to advance. While a source stated that Lockheed's primary goal is "long-term supply chain security," the success of these deals will depend on reconciling the higher costs of Western production with the company's procurement needs.