Core Insights - The U.S. Defense Logistics Agency plans to purchase up to $40 million worth of scandium oxide over the next five years to secure supplies for the national stockpile, following China's export controls on the material [1][2] - The acquisition includes a target of 6.4 metric tons of scandium oxide, with nearly 2 tons sought in the first year, representing about 5% of last year's global production [2][3] - Rio Tinto has been identified as the sole vendor capable of meeting the government's requirements for scandium oxide, with the company actively collaborating with the U.S. government to enhance domestic production [4][5] Company Insights - Rio Tinto's facility in Quebec, Canada, produced its first batch of scandium oxide three years ago and currently has an annual production capacity of 3 metric tons [5] - The company has developed a process to extract high-purity scandium oxide from titanium dioxide production waste, which eliminates the need for additional mining [4]