Core Insights - Australia's Sunrise Energy Metals has granted Lockheed Martin an option to purchase up to 15 tonnes of scandium oxide over a five-year period [1] Company Summary - Sunrise Energy Metals is focusing on the production of scandium oxide, which is a critical material for various applications, including defense [1] - Lockheed Martin, a U.S. defense contractor, is interested in securing a supply of scandium oxide, indicating potential demand in the defense sector [1]

Core Viewpoint - Scandium International Mining Corp. has received a mining license for its Nyngan Scandium Project in New South Wales, marking a significant milestone after a nine-year application process [1][2][3] Group 1: Project Development - The grant of Mining Lease No 1893 provides regulatory certainty for advancing strategic partnerships, offtake contracts, and financing for the project [2] - The mining lease is valid for an initial term of 21 years until October 2046, allowing the operator to apply for renewal [5] - The Nyngan Scandium Project is designed as a small surface mining operation, with an annual recovery of approximately 75,000 tons of limonite ore [7] Group 2: Market Context - There is a growing demand for scandium, classified as a critical mineral by several governments, and the project aims to supply this demand outside of China and Russia [4][6] - The project is positioned to become the world's first primary scandium-mining project, enhancing New South Wales' potential as a leader in sustainable mining of critical minerals [6][8] Group 3: Technical Aspects - The average limonite scandium head grade is 409 ppm, with a projected output of approximately 38,500 kg of scandium oxide per year, grading 98 to 99.9% Sc2O3 [7] - The project development includes a one-year construction period followed by a 24-month ramp-up to reach full capacity [7]

Core Viewpoint - The US Defense Logistics Agency (DLA) plans to purchase up to $40 million worth of scandium oxide from Rio Tinto over the next five years to enhance the US defense stockpile, aiming to secure a stable supply of this critical rare earth element following China's export controls [1][3]. Group 1: Acquisition Details - The DLA intends to acquire 6.4 tonnes of scandium oxide over five years, starting with nearly 2 tonnes in the first year, which represents about 5% of the global scandium oxide production of 40 tonnes last year [2]. - The current production capacity for scandium oxide is 80 tonnes, indicating a significant reliance on global supply chains [2]. Group 2: Supply Chain Context - China's export controls on scandium, imposed in late 2024, have constrained the supply chain, prompting the DLA's acquisition strategy for the National Defence Stockpile [3]. - Rio Tinto has been identified as the only vendor capable of meeting the government's product needs at the required capacity [3]. Group 3: Domestic Production Efforts - Rio Tinto is collaborating with the US Government to identify opportunities to increase domestic production and strengthen supply chains for the US market [4]. - In August, the US awarded up to $10 million to Elk Creek Resources to bolster domestic sources, highlighting ongoing efforts to reduce reliance on foreign materials [4]. Group 4: Technological Advancements - Rio Tinto achieved a breakthrough in 2020 by developing a method to extract high-purity scandium oxide from waste streams during titanium dioxide production, which eliminates the need for additional mining [5]. - The Canadian facility in Quebec has an annual production capacity of 3 tonnes of scandium oxide, indicating potential for increased domestic supply [5]. Group 5: Financial Implications - Rio Tinto announced gross costs of up to $300 million due to US tariffs on its primary aluminium exports from Canada during the first half of 2025, which may impact its financial performance [6].