【Lockheed Martin Seeks Domestic U.S. Rare Earth Supply to Reduce Dependence on China】
According to Defense News, reporting on August 5, 2026: Two informed sources revealed that, under pressure from President Donald Trump for defense contractors to reduce reliance on China, Lockheed Martin is negotiating to procure two critical rare earth minerals from domestic U.S. mines.
The sources said the world’s largest defense company is in talks with Neocle Technologies to secure supply of scandium, while also engaging with Teck Resources and 5N Plus regarding germanium procurement. Scandium and germanium are used in a wide range of military equipment, including aircraft components and infrared sensors. Such agreements would mark a significant step in the U.S. effort to build a domestic mineral supply chain—yet major obstacles remain: Chinese suppliers have historically offered lower prices, and domestic mining and downstream processing capacity in the U.S. still falls short.
Lockheed Martin manufactures the F-35 Lightning II fighter jet, Patriot intercept missiles, and various other weapons systems for the U.S. military. In recent years, as China has tightened export controls on critical minerals, Trump has pressured companies like Lockheed Martin to support domestic mines through long-term supply contracts. Last month, Trump signed an executive order significantly raising the bar for defense contractors seeking exemptions to import restrictions. For years, these exemptions allowed firms to source minerals from China and other restricted overseas suppliers.
Last week, Reuters reported that despite dozens of mineral development projects underway across the United States, this executive order underscores how vast the gap remains between U.S. mining and processing industries and China’s dominant market position in this sector.
A source familiar with the agreement details—and whose documents were obtained by Reuters—revealed that Neocle Technologies, headquartered in Colorado, has signed a preliminary agreement to supply 15 tons of scandium annually to Lockheed Martin. Scandium is one of 17 rare earth elements, used to produce lightweight, corrosion-resistant aircraft alloys—an announcement previously undisclosed. The supply will come from Neocle’s mine in Nebraska, which is scheduled to begin operations before 2028, with an annual capacity of 100 tons. Final formal agreements still need to be concluded, but both companies already have a foundation for collaboration based on research projects funded by the U.S. Department of Defense.
This contract represents about one-quarter of global scandium demand. According to the U.S. Geological Survey, global annual scandium demand is approximately 60 tons and continues to grow. Neocle’s CEO Mark Smith stated: “Both companies understand that scandium is crucial to the future of American defense technology.” Lockheed Martin affirmed its recognition of Neocle’s efforts in establishing a domestic scandium supply chain. The U.S. has not mined scandium domestically since 1969; Rio Tinto is currently the only scandium producer in North America, with an annual output of around 9 tons.
Another informed source disclosed that Lockheed Martin is also negotiating with Teck Resources over germanium procurement. Germanium is primarily used in manufacturing infrared sensors and other military equipment. Teck extracts zinc and germanium concentrates at its Red Dog mine in Alaska, which are then shipped to British Columbia for smelting and separation of the two metals. While Teck does not disclose its standalone germanium production volume, it claims to be the top germanium producer in North America and fourth-largest globally. According to U.S. Geological Survey data, global germanium consumption is about 60 tons per year, with steadily rising demand, and over half of U.S. germanium needs are met through imports.
The second source added that Lockheed Martin is concurrently negotiating germanium supply with 5N Plus, a company based in Quebec. This firm recently secured funding from the U.S. Department of Defense to launch a project in Utah, using recycled materials to purify metallic germanium.
The source emphasized: “Lockheed Martin’s core objective is ensuring long-term supply chain security. Under policy pressure, companies must clearly identify whether rare earth mineral sources are Chinese or elsewhere.”
Negotiations between Lockheed Martin and Teck Resources, as well as 5N Plus, have been ongoing for more than a year, with pricing and contract duration remaining key points of contention. 5N Plus has no representative available for comment at this time; Teck declined to comment on specific commercial contracts but confirmed alignment with the Canadian government on plans to expand germanium processing capacity in British Columbia. When asked about the germanium procurement talks, Lockheed Martin responded that the company continues to assess the global supply chain for critical rare earth minerals, aiming to ensure stable material supply to support military mission execution.
For years, due to factors such as extraction models and regulatory standards, China has consistently priced its critical rare earth minerals lower than Western suppliers. Reuters reported earlier this year that Western nations are attempting to establish regional mineral pricing mechanisms to reduce the influence of Chinese market pricing.
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Original article: toutiao.com/article/1872631236194377/
Disclaimer: The views expressed in this article are those of the author.