Breaking News: NioCorp’s Titanium-Rich Mine Critical to Securing DOD’s Supply Chain, Administration Takes Action
As the global demand for titanium and other critical minerals continues to skyrocket, NioCorp Developments Ltd.’s (NioCorp) planned titanium-bearing magnetite iron ore project has taken on new urgency, with the Department of Defense (DOD) leading the charge to ensure a secure supply chain. Meanwhile, the current administration has taken further action to strengthen and secure critical mineral supply chains, as explored below.
DOD’s Efforts to Stockpile Critical Minerals
Recent concerns over supply chain resilience and national security have propelled the DOD to forefront the issue of critical materials acquisition. With titanium holding a critical role in lightweight military applications, such as jet engine components and composite materials, NioCorp’s project is seen as a vital component in strengthening the nation’s supply chain.
In response, the DOD has initiated multiple efforts to stockpile key critical minerals, including:
- Critical Materials Procurement Initiative: An executive action aimed at identifying critical minerals, securing domestic suppliers, and promoting research into substitutes and alternatives.
- National Defense Strategy: Emphasizing the need for strategic stockpiling and diversification to safeguard supply chains.
- Rare Earth Magnets: Efforts underway to develop alternative sources for these highly sought-after materials.
- Recycled Rare Earth Elements: R&D initiatives focusing on more sustainable and eco-friendly procurement strategies.
Administration Action on Critical Mineral Supply Chain Strengthening
Taking heed of the DOD’s concerns, the administration has introduced a range of measures to fortify supply chain resilience:
- Mineral Security Report: A comprehensive report highlights key mineral dependencies, recommended diversification strategies, and proposals for strategic stockpiling.
- Critical Mineral Priority List: Identifying and prioritizing essential materials for national security and sustainable growth.
- State-led Initiatives: Empowering states to develop state-specific critical mineral plans and supply chain diversification programs.
DOE’s Energy and Minerals Update (E&M) Program: Accelerating Renewable Energy Through Strategic Mineral Extraction
Recent Developments:
- Recycled Lithium-Ion Batteries: A grant funding opportunity aimed at demonstrating closed-loop recycling processes, addressing environmental concerns, and boosting domestic battery production capabilities.
- Grid Modernization Initiative: Developing cost-effective, scalable, and secure energy storage solutions based on advanced mineral extraction technology.
Industry Insights & Projections
- Titanium Demand Spurt: Anticipated doubling in demand for titanium raw materials by 2027, driven by growing consumption in aerospace, automotive, and energy industries.
- NioCorp’s Project Advancements: Steady progress on drilling and exploration activities, confirming promising titanium-rich magnetite iron ore deposits.
Key Highlights:
- NioCorp’s titanium-bearing project pivotal to securing the DOD’s supply chain
- Current administration taking action to strengthen critical mineral supply chains through state-led initiatives and legislative updates
- DOE/E&M program focuses on responsible, sustainable extraction and recyclability of key minerals like lithium and rare earth metals
- Industry projections showcase accelerating demand for titanium raw materials
Stay ahead of the curve by following leading edge developments in the rare earth and critical mineral spheres.
Additional Tags: rare earth metals, sustainable supply chain, national defense strategy, mineral security report, critical mineral priority list, state-led initiatives, renewable energy, energy and minerals update program, strategic stockpiling, battery production, lithium-ion, recycled materials, grid modernization initiative.
SEPT. 12th, 2024 ~ Critical Materials Are In High Demand. What is DOD Doing to Secure the Supply Chain and Stockpile These Resources? | U.S. GAO
Critical materials, such as titanium, tantalum, and tungsten, are key building blocks in many U.S. military weapon systems. They enable unique, high-performance combat capabilities. For example, titanium is a strong, light-weight metal that helps prevent corrosion on weapons used in a variety of climates.
Despite the importance of these materials to our military, in many cases, their sources (for example, mines) are controlled by nations that the U.S. military is in competition with. This puts our national security at risk.
Today’s WatchBlog post looks at our new report about the Department of Defense’s efforts to reduce risks that could affect supply chain access for these materials. We’ll also look at another new report reviewing how DOD maintains a stockpile of these critical materials.
China controls the supply for many materials critical to our national defense and more
What do smartphones, automobiles, solar panels, and national defense programs have in common? They all depend on critical materials that are not found or produced in sufficient quantities in the United States. The supply chains for these critical materials are spread across the globe. But China dominates the mining and processing of these materials. For example, China mines nearly 70% of the global supply of rare earth elements. Rare earths are critical materials that have unique magnetic and heat-resistance properties that are useful for DOD weapon systems. For instance, a rare earth element called neodymium is used to create magnets that are extremely strong, retain magnetic strength at elevated temperatures, and operate under demanding conditions, such as in combat.
Why not mine here? In the United States, rare earth mining capacity has waned over the last 40 years. This decrease is due to the emergence of lower-cost suppliers in other nations, such as China, and the significant effect that mining operations pose to the environment. According to DOD officials, the U.S. has more rigorous environmental regulations than China. This allows China to mine and process rare earths and certain other critical materials at a lower cost.
Reliance on China is just one challenge. Between 2019 and 2022, the U.S. imported more than 95% of the total rare earths it consumed. Much of it was from China.
If China decided to no longer sell to the United States, we would lose access to this supply and need to look for alternatives. Unfortunately, the U.S. doesn’t have equivalent substitutes for these materials that perform at the same level. According to the United States Geological Survey, substitutes do not always perform as well and can cost more to produce.
What is DOD doing to reduce its dependence on China and secure supplies of critical materials?
In our new report, we found that DOD’s ability to influence the market for critical materials is limited. DOD’s demand is relatively low compared to the broader global commercial market for these goods.
With that said, DOD has several efforts underway to reduce its reliance on adversary nations for critical materials. Some of these efforts are required by Congress. Since 2019, Congress has created or expanded several restrictions on DOD’s procurement of critical materials, particularly those that are sourced from China, Iran, North Korea, or Russia. DOD has ongoing efforts to implement these new and revised restrictions from Congress. Learn more by reading our full Q&A report.
DOD’s stockpile of critical materials. DOD also maintains a stockpile of materials that are essential to national defense and civilian life. This National Defense Stockpile includes many of the metals already discussed, such as titanium, and raw materials used to create lithium-ion batteries.
We recently sat down with GAO’s Bill Russell to learn more about how DOD decides what to stockpile and how it manages these resources. Listen to our podcast below.
In our September report we detail DOD’s management of the National Defense Stockpile and some of gaps in these efforts. For example, we found that DOD does not have the appropriate information (data) it needs to project shortfalls for nearly half of materials critical to national security. Similarly, we found that while DOD has guidance for some aspects of managing the stockpile, it has not yet finalized the criteria for releasing materials for use.
We made six recommendations about these issues and others identified in our full report. Learn more by reading that report and listening to our podcast linked above.
Locations of the National Defense Stockpile Materials
SEPT. 20th, 2024~Senate passes bill to set up ‘critical minerals task force.
Senate passes bill to set up ‘critical minerals task force’ | InsideTrade.com
The Senate on Wednesday unanimously approved a bill to establish a critical minerals task force that would identify opportunities to boost domestic production and recycling – an effort aimed at reducing U.S. dependence on critical minerals from China. The “Intergovernmental Critical Minerals Task Force Act,” introduced in June 2023 , would set up a task force made up of representatives from several federal agencies, including the Office of the U.S. Trade Representative. The bill was introduced by Sens. Gary Peters…
SEPT. 20th, 2024~Administration Takes Further Action to Strengthen and Secure Critical Mineral Supply Chains
LPO Updates • Issue 22 • September 2024
LPO Updates • Issue 22 • September 2024 (govdelivery.com)
MEANWHILE on SEPT. 21st 2024~ The DoD Awards $26.4M for Domestic High-Purity Niobium Production
DoD Awards $26.4M for Domestic High-Purity Niobium Production | Mirage News
U.S. Department of Defense
The Department of Defense announced today a $26.4 million award via the Defense Production Act Investments (DPAI) program to Global Advanced Metals USA, Inc. (GAM) to enable the domestic production of high-purity niobium oxide at GAM's Boyertown, Pennsylvania facilities.
In performing this work, GAM leverages more than seventy years of expertise in ore extraction processes and will utilize this funding to integrate new workflows into its existing production facilities in Pennsylvania. This new domestic supply will further secure the nation's supply chain for materials critical to the Department and reduce dependency on foreign sources.
"This award will substantially reduce supply chain risk in our defense and commercial aerospace industries," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD(IBP)). "The United States can no longer afford to be entirely reliant on overseas sources for the high-purity niobium required for specialty steels and alloys used in a plethora of defense platforms such as jet and rocket engines." This effort supports the National Defense Industrial Strategy's priority to increase supply chain resilience by expanding support for domestic production.
This is the latest of 55 awards totaling $555 million issued by the DPAI program since the beginning of fiscal year 2024. DPAI is overseen by the ASD(IBP)'s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) program.
FORM YOUR OWN OPINIONS & CONCLUSIONS ABOVE:
My thoughts & speculations below:
As the $$$$ continue to flow into Domestic, Traceable Critical Mineral Production & Projects forming a circular economy for critical minerals (From Mine to Recycling). It does appear that all of the Critical Minerals Niocorp's Elk Creek mine will produce (Should they actually achieve a Finance?) are in HIGH DEMAND! Not only from Private entities but the U.S. Govt. & DoD as well.
THE DOTS ARE THERE & THE ELK CREEK PROJECT IS STANDING TALL AMONGST IT'S PIERS, YET….
We are waiting with many for material news (on a Host of outstanding topics) as is becomes available; & to see "IF" 2024 will indeed bring about "Historic Advancements" for the Elk Creek Project & shareholders??? ALL T.B.D.
So far…in 2024 ~ "I am seeing a lot of Talk & Possibilities, without factual proven end results!"(I.E. Early as possible F.S. ~2024~ Independently proving all.
NOTING*****(Niocop is pursuing the monies needed to complete the F.S. yet to date have not done so….) EXIM & other U.S. Govt. & Private entities remanin/appear "INTERESTED", however to date none have committed the $$$ needed to move the project forward.
Still… "I am remaining Hopeful team Niocorp, (the U.S. Govt. & Private Interested Entities) can/will deliver on many of those outstanding issues!""
Waiting with many…. Let's GO NIOCORP!!!
Chico
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