Reducing reliance on China: Defense Logistics Agency to source from Rio Tinto, the first North American producer of the rare-earth metal.
The United States plans to expand its national stockpile to include the critical rare-earth element scandium. Over the next five years, the Defense Logistics Agency (DLA) intends to purchase scandium oxide from a Rio Tinto subsidiary, according to a report first published by Reuters. The supply contract is valued at up to $40 million, covering a total of 6.4 metric tons of scandium. For comparison, global annual demand amounts to just 30–40 tons, according to the U.S. Geological Survey (USGS).
Although scandium has limited commercial applications, such as in fuel cells, it is strategically important for the defense sector. The metal is primarily used as an alloying agent in aerospace applications, but it also plays a role in lasers and high-performance lighting. Currently, scandium production is dominated by China, leaving the U.S. entirely dependent on imports. In April, Beijing imposed new export controls on scandium and other rare earth elements, further tightening global supply chains. Citing this development, the DLA, a Pentagon agency, justified the need to add scandium to the national reserve.
Rio Tinto has been identified as the only supplier capable of meeting U.S. requirements. The mining giant recently became the first producer of scandium in North America, extracting the material in Canada from waste streams generated during titanium dioxide production (we reported). Reuters reports that Rio Tinto’s current annual capacity stands at about three tons.
The U.S. government’s determination to secure scandium supply has already been reflected in its support for both domestic and international projects. Scandium is also listed among the critical minerals identified by federal authorities. However, unlike most other entries on the list, it has not yet been the subject of a comprehensive risk assessment.
Photo: JacobH via Canva
