Lockheed Martin logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration

(Reuters) -Rare earths miner NioCorp said on Thursday it is working with U.S. defense contractor Lockheed Martin to develop a scandium and aluminum alloy for use in military equipment as part of a Pentagon‑funded program.

Colorado-based NioCorp received $10 million from the Pentagon in August to develop a Nebraska mine that will produce scandium, one of the 17 rare earths. Lockheed is a key supplier to the U.S. military, including for fighter jets and other weaponry.

A portion of that funding is being used by NioCorp and Lockheed to develop an alloy of scandium and aluminum, with tests slated for 2027 for use in a range of equipment.

An alloy of aluminum and scandium appeals to the Pentagon because it is lightweight, conducts electricity well, is corrosion-resistant, and holds all of those characteristics at a range of temperatures.

Scandium is already used widely for defense, aerospace and energy applications, but nearly all supply comes from China, Russia and Ukraine. The U.S. has not mined scandium since 1969.

NioCorp plans to extract the scandium from the Nebraska deposit and process the metal into an ingot form that a third party would use to create a powder that can be used in 3D printing to make replacement parts for Lockheed.

NioCorp expects to open its Nebraska mine by 2028. The project is under consideration for an $800 million loan from the U.S. Export-Import Bank.

(Reporting by Dharna Bafna in Bengaluru and Ernest Scheyder in Houston; Editing by Tasim Zahid and David Gregorio)