U.S. seeks scandium oxide from Rio Tinto for defense stockpile
The U.S. Defense Logistics Agency (DLA) plans to purchase up to $40 million worth of scandium oxide over the next five years from a Rio Tinto unit to bolster the national defense stockpile.
Scandium, a rare earth element critical to defense and technology systems, has been largely sourced from China. Following Beijing’s export controls in late 2024, supply chains were disrupted, prompting the U.S. to secure alternative sources. The DLA aims to acquire 6.4 metric tons of scandium oxide over five years, including nearly 2 tons in the first year—about 5% of last year’s global production, News.Az reports, citing Reuters.
Currently, Rio Tinto Services Inc. is the only vendor capable of meeting the U.S. government’s required production capacity. Rio Tinto, which pioneered a method to extract high-purity scandium oxide from titanium dioxide waste streams, said it is actively collaborating with the U.S. to strengthen domestic supply chains.
The company’s Quebec facility, which produced its first scandium oxide batch three years ago, has an annual capacity of 3 metric tons. Meanwhile, the U.S. has also awarded up to $10 million to Elk Creek Resources, a unit of NioCorp Developments, to increase domestic production.
Scandium’s strategic importance has grown amid supply constraints, making the U.S. government’s acquisition critical for future defense and technology needs.
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