NioCorp’s Elk Creek Project Aims to Tackle U.S. Rare Earth Supply Risks as China’s Export Controls Persist
China’s Rare Earth Export Licensing Isn’t Easing—Critical Supply Vulnerabilities Remain
In recent remarks at the Morgan Stanley National Security & Critical Materials Symposium, NioCorp CEO Mark A. Smith sounded a clear alarm: China’s dual-use export licensing for heavy rare earths is “not going away.” Despite headlines suggesting a loosening of controls, Smith emphasized that China remains the world’s only source for many of these minerals—and the export process is set to stay restrictive, especially for any materials intended for U.S. military applications.
According to Smith, “There’s mass confusion again. There are suggestions that China agreed to loosen the heavy rare earth restrictions announced in October, but not the ones announced in April. In terms of rare earth permanent magnets, it's the April list that matters, not the October list.” Ultimately, China’s firm stance underscores a fragile global supply chain for key materials, leaving the U.S. exposed to potential disruptions.
The U.S. Is Fully Dependent on Imports for Niobium and Scandium—Elk Creek Project Offers Domestic Potential
The U.S. currently imports 100% of its niobium and scandium needs, as well as nearly all titanium and rare earth elements used in advanced manufacturing and defense technologies. Smith’s solution? Accelerate onshoring of production through projects like NioCorp’s Elk Creek Project in Nebraska. This site, if fully financed and developed, is positioned to produce all three strategic metals—and potentially a suite of magnetic rare earths that are central to technologies ranging from electric vehicles to missiles.
| Mineral | Current U.S. Import Dependency | Elk Creek Project Target Output | Key Applications |
|---|---|---|---|
| Niobium | 100% | Yes | High-strength steel, infrastructure |
| Scandium | 100% | Yes | Aluminum alloys, fuel cells |
| Titanium | Nearly 100% | Yes | Aerospace, medical implants |
| Magnetic Rare Earths (e.g., Neodymium, Dysprosium) | Nearly 100% | Potential | Permanent magnets, electronics, defense |
Elk Creek Project Advances but Faces Project Financing Hurdles
Smith shared that NioCorp stands ready to move the Elk Creek Project into construction as soon as full project financing is secured. He also discussed ongoing efforts to establish downstream processing in the U.S.—an added step to reduce exposure to foreign-controlled supply chains and improve U.S. industrial resilience.
“We are doing this for a purpose,” Smith stated. “And that purpose is to onshore these supply chain activities so the U.S. government can be assured we can do these things here, without having to worry about export licenses or decisions on whether materials can be sent to the United States or not.”
Outlook: U.S. Onshoring Momentum and Persistent Geopolitical Risk
For investors and policymakers, NioCorp’s message is clear: supply risks tied to China’s policies remain unresolved. While NioCorp’s Elk Creek Project promises to be a significant part of a domestic solution, realization of its benefits still hinges on securing the capital needed for construction and operation.
With rare earths and critical minerals increasingly at the center of geopolitical strategy, developments around the Elk Creek Project—and Washington’s efforts to shore up the domestic supply chain—will be important to monitor as the minerals market continues to evolve.
To view the full discussion with CEO Mark A. Smith, watch the replay at this link.
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