Scandium Supply Deal with Lockheed Martin Could Reshape Defense Materials Market
Sunrise Energy Metals has secured a strategic partnership with Lockheed Martin, granting the defense giant an option to purchase a quarter of scandium production from the Syerston Project over five years, aiming to boost scandium adoption in aerospace and defense.
- Lockheed Martin secures option for 15 tonnes per annum of scandium oxide
- Agreement covers approximately 25% of Syerston Project’s initial production
- Partnership aims to establish Australia-US scandium supply chain
- Testing and qualification programs to accelerate scandium use in defense products
- Offtake option subject to binding agreements and market demand
Strategic Alliance in Critical Minerals
Sunrise Energy Metals Limited has taken a significant step forward in commercialising scandium, a rare and valuable critical mineral, by entering into a partnership with Lockheed Martin Corporation. The agreement grants Lockheed Martin an option to purchase up to 25% of the scandium oxide produced annually at Sunrise’s Syerston Project in New South Wales during the first five years of mining operations.
This move not only underscores the growing strategic importance of scandium but also aligns with broader geopolitical efforts to secure critical mineral supply chains between Australia and the United States. The timing follows closely on the heels of the US-Australia critical minerals pact, highlighting the defense sector’s increasing reliance on diversified and stable mineral sources.
Accelerating Scandium Adoption in Defense
Lockheed Martin’s interest is driven by scandium’s unique properties, which can enhance aerospace and defense technologies, including lighter, stronger alloys for aircraft and other advanced platforms. The partnership includes collaborative testing and qualification programs designed to fast-track the integration of scandium-containing components into Lockheed Martin’s product lines.
Sunrise’s Managing Director, Sam Riggall, emphasised the latent demand for scandium in both civilian and defense markets, noting that the key to unlocking this demand lies in providing customers with reliable, scalable, and cost-effective supply options. The Syerston Project’s capacity to expand rapidly if market conditions warrant adds a layer of flexibility to meet future needs.
Commercial and Market Implications
The option to purchase 15 tonnes per annum over five years, totaling up to 75 tonnes, represents a substantial portion of the project’s forecast production. While the option remains subject to binding offtake agreements, the arrangement signals strong commercial validation for Sunrise’s scandium ambitions.
Robert Friedland, Co-Chair of Sunrise, highlighted the broader significance of this partnership in the context of shifting global supply chains and the defense sector’s evolving priorities. The collaboration with Lockheed Martin could pave the way for further industrial partnerships and increased demand for scandium, potentially transforming the market landscape for this niche but strategically vital mineral.
Bottom Line?
This partnership marks a pivotal moment for scandium’s role in defense and critical minerals supply chains, with market watchers keenly awaiting the finalisation of offtake agreements and Lockheed’s qualification progress.
Questions in the middle?
- Will Lockheed Martin fully exercise its option to purchase the maximum scandium volume?
- How quickly can Sunrise scale up production if demand from Lockheed or other customers rises?
- What new applications for scandium might emerge from Lockheed Martin’s testing programs?
