NioCorp expects this move to position it as a domestic producer of aluminum-scandium (Al-Sc) base alloys, amid growing demand for this material in the defense and commercial markets.
The all-cash purchase complements NioCorp’s Elk Creek critical minerals project in Nebraska, where it aims to produce scandium oxide alongside niobium, titanium and possibly rare earths once fully funded and operational.
FEA’s proprietary process converts scandium oxide directly into Al-Sc master alloy, bypassing the production of intermediates. NioCorp is also assessing the feasibility of producing finished Al-Sc alloy parts via casting, forging and machining for US OEMs.
“This strategic acquisition positions NioCorp to potentially build America’s first vertically integrated scandium supply chain, from mining to finished alloy parts,” Mark A. Smith, CEO of NioCorp, said in a press release.
Eugene Prahin, CEO of FEA, praised NioCorp’s vertically integrated approach, adding that the company’s alloy technology “will be key to the growth of scandium-based structural alloys in the coming years.”
The acquisition of FEA follows a Pentagon Title III award of $10 million to NioCorp’s subsidiary Elk Creek Resources. It was announced in August and is aimed at supporting scandium oxide production.
NioCorp does also collaborate with Lockheed Martin (NYSE:LMT) on aerospace-grade Al-Sc components.
“NioCorp is working with the Pentagon and is committed to protecting the U.S. from market manipulation by China, which has historically limited scandium-based technologies,” Smith said.
With the latest acquisition and government funding, NioCorp aims to build a complete U.S. mine-to-market supply chain for scandium, spanning mining, alloy production and finished parts production.
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Securities Disclosure: I, Georgia Williams, have no direct investment interest in any company mentioned in this article.
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