NioCorp Developments Ltd. (TSX:NB, OTCQX:NIOBF) on Thursday announced an agreement with Lockheed Martin’s Skunk Works advanced development programs division to support the development of a scandium-based defense technology.
The program, which is being funded by the US Department of War, is designed to produce prototype components of aluminum-scandium alloy that will expand the capabilities of modern fighter aircraft.
The Pentagon funding is 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.
NioCorp is developing a polymetallic deposit in Nebraska, focused on near-term production of scandium, niobium, titanium, and light and heavy magnetic rare earth oxides.
"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 US defense and commercial applications," NioCorp CEO Mark Smith said in a statement.
NioCorp shares rose nearly 2% to $8.62 in late-morning trading on Thursday.