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According to reports, the U.S. defense agency is seeking to purchase scandium oxide from Rio Tinto.
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Release time：2025-09-26
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This move aims to ensure a stable supply of scandium—a rare earth element critical to the defense and technology sectors.
According to Reuters, the U.S. Defense Logistics Agency (DLA) plans to purchase up to $40 million (29.62 million pounds) worth of scandium oxide from Rio Tinto Group over the next five years, aiming to bolster U.S. defense reserves. This move is designed to ensure a stable supply of scandium, a rare earth element critical to Western defense and technology sectors, following China's imposition of export controls. The agency intends to acquire 6.4 tons of scandium oxide within five years, starting with nearly 2 tons in the first year. This initial procurement represents about 5% of last year’s global scandium oxide production—estimated at 40 tons by the U.S. Geological Survey—though current global production capacity stands at 80 tons. In a document, the DLA noted: "Until recently, scandium was primarily sourced from China." However, at the end of 2024, China implemented export restrictions on scandium, disrupting supply chains and prompting the national defense reserve program to proceed with this acquisition. "Rio Tinto Services has been identified as the sole supplier capable of meeting the government’s product demands at the contracted production levels," the agency stated.
According to reports, Rio Tinto stated that it is actively collaborating with the U.S. government to identify opportunities and leverage existing support in order to boost domestic production and strengthen supply chains for the U.S. market. In an email reply, Rio Tinto told Reuters: "Rio Tinto is uniquely positioned to help secure the critical materials essential for America's future." Back in August of this year, the U.S. awarded up to $10 million to Elk Creek Resources, a subsidiary of NioCorp Developments, to bolster domestic resource capabilities. However, the publication noted that despite these efforts, the government continues to rely on foreign sources for these materials—resources that are indispensable for a wide range of defense systems.
In 2020, Rio Tinto’s scientists achieved a breakthrough by developing a method to extract high-purity scandium oxide from waste streams generated during the titanium dioxide production process—eliminating the need for additional mining. The company’s facility in Quebec, Canada, produced its first batch of scandium oxide three years ago, and currently boasts an annual production capacity of 3 tons. In July, Rio Tinto announced that, due to U.S. tariffs imposed on its exports of primary aluminum from Canada in the first half of 2025, the total cost could reach as high as $300 million.
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