NioCorp Developments Ltd. closed a $8.4 million cash deal on December 4, 2025 to acquire the manufacturing facilities and intellectual property of Massachusetts‑based FEA Materials LLC. The assets include a proprietary hybrid metallothermic/electrolysis process that produces aluminum‑scandium (Al‑Sc) master alloy at a lower cost than conventional methods.
The purchase gives NioCorp full control over the production of Al‑Sc, a key component for high‑performance, rare‑earth‑free magnets used in defense and commercial applications. By adding this capability, the company can now move beyond its Elk Creek critical‑minerals project in Nebraska, where it is developing scandium oxide and other critical minerals, and deliver finished alloy products directly to original equipment manufacturers. The move is intended to create the first U.S. vertically integrated scandium mine‑to‑markets supply chain, reducing dependence on foreign imports and positioning NioCorp to capture a growing share of the magnet market.
Financially, NioCorp reported a net loss of $42.7 million for the three months ended September 30, 2025, compared with a $2.1 million loss for the same period in 2024. The company still holds more cash than debt and recently raised $150.2 million through a registered direct offering to fund the Elk Creek project. The $8.4 million acquisition is a modest addition to its cash balance but strengthens the company’s long‑term revenue prospects by adding a new product line and potential synergies with its existing critical‑minerals portfolio.
CEO Mark A. Smith said the acquisition “positions NioCorp to build out America’s first vertically integrated U.S. scandium supply chain from the mine to finished alloy parts for both defense and commercial manufacturers.” He added that the technology will accelerate the company’s ability to supply high‑performance magnets to partners such as Lockheed Martin, with whom NioCorp has a collaboration to develop aluminum‑scandium parts for aerospace applications.
The deal aligns with Pentagon Title III funding, under which NioCorp has received up to $10 million to advance the Elk Creek project, and supports the company’s strategy to meet the rising demand for rare‑earth‑free magnet materials. Analysts note that the acquisition could increase NioCorp’s production capacity to roughly 100 tonnes of scandium per year, a significant jump from the current global supply of about 25 tonnes annually.
With the acquisition, NioCorp now controls the entire value chain—from mining and oxide production to alloy manufacturing—positioning it to accelerate commercialization of Al‑Sc alloys and strengthen its foothold in both defense and commercial markets.
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