The US agency intends to acquire 6.4t of scandium oxide from Rio Tinto over the next five years.
The DLA plans to acquire 6.4 tonnes of scandium oxide over the five-year period, beginning with nearly 2 tonnes in the first year. This initial purchase accounts for approximately 5% of last year’s global production of 40 tonnes, with a global capacity of 80 tonnes, according to the U.S. Geological Survey.
A DLA document stated: “Rio Tinto Services Inc. has been identified as the only vendor available capable of fulfilling the government’s required product needs at the capacity required for the contract.” The agency noted that recent supply chain constraints necessitated this strategic acquisition to support critical systems.
Rio Tinto is working with the U.S. government to explore opportunities for expanding domestic production and reinforcing supply chains. The company stated: “Rio Tinto is uniquely positioned to help secure materials critical to America’s future.”
In 2020, Rio Tinto’s scientists developed a process to extract high-purity scandium oxide from titanium dioxide production waste, eliminating the need for additional mining. The company’s facility in Quebec, Canada, operational for three years, has an annual production capacity of 3 tonnes.
In August, the U.S. provided up to $10 million to Elk Creek Resources, a subsidiary of NioCorp Developments, to support domestic scandium production. Despite these efforts, the U.S. continues to depend on international sources for this material, essential for various defense applications.
In July, Rio Tinto reported gross costs of up to $300 million due to U.S. tariffs on its primary aluminum exports from Canada during the first half of 2025. The scandium acquisition underscores efforts to secure critical materials, with Rio Tinto’s Quebec facility playing a pivotal role in strengthening the U.S. supply chain for advanced technology and defense needs.
