US-based NioCorp announced a phased plan to launch commercial-scale production of aluminium-scandium (Al-Sc) master alloy in the United States.

Under an exclusive agreement with Nanoscale Powders, a Boston-based energy materials manufacturer, the initial work is expected to deliver several ingots of Al-Sc master alloy. The proposal will use Nanoscale's proprietary process, developed to enhance efficiency and minimize the environmental impact of Al-Sc production. Typically, scandium is introduced into Al-Sc alloys using a master alloy of 98% aluminium and 2% scandium. However, this new collaboration will produce Al-Sc master alloys containing up to 5% scandium, over double the usual industry standard.

The first phase involves using purchased scandium feedstock to demonstrate Nanoscale's technology at a pilot scale. If proven technologically and economically feasible, the next objective is to ramp up commercial production of Al-Sc master alloys before NioCorp commences its own scandium oxide production. Currently, NioCorp is advancing its Elk Creek niobium, scandium and titanium project in southeast Nebraska, anticipating over 100tpa of scandium oxide production.

Scandium holds immense potential for transforming technologies across the automotive, aerospace, defence and renewable energy sectors. When combined with aluminium alloys, scandium creates alloys that are not only stronger but also lighter, enhancing corrosion resistance and enabling reliable welding operations. Based on Project Blue estimates, Al-Sc alloys represented the second-largest consumer of scandium in 2022, accounting for 29% market share.

The production of scandium in the Western world is currently limited and faces challenges due to the lack of established supply chains and the complexities associated with extraction. While there is a growing demand for scandium in various industries, most of the global supply is concentrated in China, which has dominated the market for the last few years. Nevertheless, the ongoing efforts to develop new sources of scandium by NioCorp and the newly active North American producer, Rio Tinto, could lead to a more diversified and robust scandium industry.