Trump announces 100% chip tariff as Apple ups U.S. investment
Investing.com -- NioCorp Developments Ltd (NASDAQ:NB) stock surged 6.3% after the company announced its subsidiary has been awarded up to $10 million from the U.S. Department of Defense to support the establishment of a domestic scandium supply chain.
The funding, awarded to Elk Creek Resources Corp. under Title III of the Defense Production Act, will support the development of the Elk Creek Critical Minerals Project in Nebraska. The award is subject to the achievement of certain milestones and follows federal appropriations championed by U.S. Senator Deb Fischer and other members of Congress.
NioCorp’s Elk Creek Project aims to become the United States’ first polymetallic deposit targeting production of scandium, niobium, titanium, and other critical minerals that the U.S. currently imports from foreign producers. The funding is expected to enable completion of feasibility study-level engineering, additional reserve drilling, and updated cost estimates for the project.
"We believe this award and the development of the Elk Creek Project will position the U.S. as a global leader in the mining, processing, and manufacturing of scandium and scandium alloy components for defense and essential civilian technologies," said Mark A. Smith, NioCorp CEO and Executive Chairman.
The DoD funding could potentially facilitate NioCorp’s pursuit of project finance, including up to $800 million in debt financing from the U.S. Export-Import Bank. The company noted that scandium alloys are increasingly replacing titanium and legacy aluminum alloy components in defense systems due to their lightweight, high-strength characteristics.
According to NioCorp, the last recorded scandium mining in the United States occurred in 1969, with virtually all current production now taking place in China. The project aligns with recent government initiatives to reduce U.S. dependence on foreign nations for critical minerals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.