LMT Reportedly In Talks For Crucial Minerals Supply From US Mines Amid Trump’s Stance Of Reducing Dependence On China

• The report said NioCorp has signed a preliminary deal to supply Lockheed for scandium.
• Teck, 5N Plus and Lockheed have been engaged in conversations for more than a year over germanium supply.
• The report comes days after the U.S. government awarded the company a $53.86 billion contract for PAC-3 missile systems.

Lockheed Martin (LMT) is reportedly in discussions to secure the supply of scandium and germanium from U.S. ​mines for its military products, according to a Reuters report.

The report cited sources and said the move was influenced by President Donald Trump’s broader agenda of reducing dependence on China for crucial minerals used in equipment ranging from aircraft components to infrared sensors.

"What Lockheed basically wants is a long-term supply chain security," a source told Reuters. "Because they are under pressure, ​so they really want to ⁠know if the supply is coming from China or elsewhere.”

The top U.S. defense contractor is in talks with NioCorp Developments (NB) for scandium, and Teck Resources (TECK) and 5N Plus for germanium, the report said.

Shares of the company were up marginally in the afternoon trading session.

A Closer Look At The Supply Deal

The report said NioCorp has signed a preliminary deal to supply Lockheed with ​15 metric tons per year of scandium from its Nebraska mine, which is slated to open by 2028. The agreement is yet to be finalized.

While details about the germanium supply agreement with Teck and 5N Plus were not immediately known, the report said the companies and Lockheed have been engaged in conversations for more than a year, debating pricing and contract length.

LMT’s Recent PAC-3 Award

The Reuters report comes days after the U.S. government awarded Lockheed Martin a seven-year contract of up to $53.86 billion for PAC-3 missile interceptor systems to increase the stockpile of defensive resources and contribute to the “Arsenal of Freedom” initiative, which mainly focuses on having a critical munitions and technology reserve, overseen by Secretary Pete Hegseth.

On Monday, Northrop Grumman (NOC) won a more than $3 billion contract from the U.S. government, under which it will work with Lockheed to increase production of missile components, including for PAC-3 systems.

On Stocktwits, retail sentiment toward LMT remained in ‘bearish’ territory over the last 24 hours. LMT stock has gained 22% so far this year and 39% over the past 12 months.

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