Lockheed Secures U.S. Scandium and Germanium Supply Deals Amid Trump's China Crackdown
LMT sits 40% above its 52-week low of $419 on light trading volume (0.3× avg).
Summary
Lockheed Martin is negotiating to buy scandium from NioCorp Developments and germanium from Teck Resources and 5N Plus, according to sources. A preliminary deal with NioCorp covers 15 metric tons of scandium per year—roughly a quarter of global demand—from a Nebraska mine expected to open by 2028. The push follows a Trump executive order restricting waivers for Chinese mineral imports, forcing defense contractors to build domestic supply chains. This directly addresses a critical vulnerability for Lockheed, which relies on these minerals for F-35 and missile systems. The deals, if finalized, would mark a major shift in securing long-term supply chain security and align with broader Pentagon efforts to reduce dependence on China. Negotiations with Teck and 5N have been ongoing for over a year, with pricing and contract length as sticking points.
At the time of this announcement, LMT was trading at $586.28 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $135.3B. The 52-week trading range was $419.00 to $692.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.