NioCorp Aims to Rebuild America’s Critical Mineral Supply Chain

• NioCorp is developing a fully permitted critical minerals mine and processing facility in Nebraska, targeting niobium, scandium, titanium, and magnetic rare earths—materials that the U.S. largely imports.
• With $20 million recently raised, NioCorp now has the funds to finalize technical studies and aims to reach a Final Investment Decision (FID) by early 2026.
• The company has binding agreements for a significant portion of its niobium and scandium output, including deals with Thyssenkrupp and Traxys USA, and is in discussions for rare earths with Stellantis.
• NioCorp is working closely with the U.S. EXIM Bank for debt financing (~$800M) under a critical minerals strategy strongly supported by recent Trump administration executive orders.
• CEO Mark Smith and the team bring rare earth processing expertise from Molycorp; the Nebraska project also benefits from strong local and state government backing.

NioCorp Developments Ltd. (TSX: NB, NASDAQ: NB) is advancing a vertically integrated critical minerals project in southeast Nebraska, positioning itself as a strategic supplier of four key materials: niobium, scandium, titanium, and magnetic rare earth elements (REEs). With full permits in hand and a recent capital infusion to complete technical studies, NioCorp aims to reach a Final Investment Decision (FID) by early 2026.

In a recent interview, CEO and Executive Chairman Mark Smith provided detailed insight into the project’s development status, funding strategy, offtake agreements, metallurgical advancements, and government support. The interview also highlighted NioCorp’s unique market position, particularly given the U.S. dependence on imports for these critical materials.

A Broad and Growing Market for Critical Minerals

The Elk Creek project stands out for its diversity of revenue streams. Niobium is used to enhance the strength of steel, and scandium serves a similar function for aluminum. Titanium is in high demand for aerospace and military applications, while magnetic rare earth elements like dysprosium and terbium are essential for high-performance permanent magnets used in electric vehicles, defense systems, and wind turbines.

This product mix gives NioCorp exposure to both infrastructure-driven demand and the accelerating electrification and defense sectors. Importantly, the project is designed to process all four materials through a single integrated facility, offering cost synergies and risk diversification.

Secured Offtakes De-Risk the Project

NioCorp has secured binding offtake agreements covering a large share of its expected production:

• Niobium: Thyssenkrupp (Germany) will purchase 50% of the ferro-niobium output, with another 25% committed to CMC Cometals (U.S.).
• Scandium: A 10-year agreement with Traxys USA covers approximately 12 tonnes per year, currently the largest scandium contract known.
• Rare Earths: NioCorp is working with Stellantis as a prospective 100% offtake partner for its magnetic REEs.

The company is also in discussions with UK-based automakers on scandium alloys, indicating broader international commercial interest.

Robust Government Backing and Debt Financing from EXIM Bank

NioCorp’s most significant funding partner is the U.S. Export-Import (EXIM) Bank, which has advanced the company through initial approval stages and indicated willingness to provide approximately $800 million in debt financing. The company expects this loan to be structured as a 10-year note, tied to Treasury rates plus a risk premium - effectively the lowest cost of capital currently available.

The remaining ~$400 million in equity will need to be raised, though the recent $20 million financing round has allowed NioCorp to progress toward FID without needing smaller, survival-based capital raises.

Interview with CEO Mark A. Smith

Technical Advancements and Capex Optimization

Since the 2022 Feasibility Study (FS), NioCorp has implemented key changes that could reduce capital costs and improve recoveries:

• Replacing twin shafts with twin ramps, cutting capex by ~$188 million and accelerating the timeline by six months.
  
• Eliminating the need for a sulfuric acid plant, saving ~$100 million.
  
• Increasing rare earth oxide recoveries to ~92% through hydrometallurgical improvements.
  

Though inflation adjustments may offset some gains. Referencing the prior FS capex estimate, Smith noted:

“I don’t think it will be greater than $1.2 billion.” 

These optimizations are being finalized through feasibility-level engineering by contractors who are already intimately familiar with the project.

Proven Permits and Experienced Execution Team

One of NioCorp’s competitive advantages is that it already holds all major permits required for construction—an uncommon achievement among U.S. mining peers. Smith also emphasized the strength of the team, particularly its rare earth expertise derived from Molycorp’s operations at the Mountain Pass Mine.

“I have one guy with 42 years of making rare earth oxides… There probably isn’t anyone in the world that knows more.”

Engineering and construction partners include Zachry Group (surface plant) and Dumas Mining (underground development), both of whom are long-time collaborators on the project.

Timeline and Ramp-Up

NioCorp’s timeline calls for:

• FID: Late 2025 or early 2026.
  
• Construction: Approximately three years.
  
• Ramp-up: Six months to reach nameplate production.
  

Importantly, offtake contracts for niobium are structured to accommodate the gradual production increase. Smith emphasized that by the time of commissioning, the company expects to have over 20 years of proven reserves, exceeding EXIM’s requirements.

Local Support and Economic Development

NioCorp has received strong support from the state of Nebraska across three gubernatorial administrations. The project is expected to generate significant employment and economic uplift for a region that has historically struggled with youth outmigration.

“They want to see something new come into the area… This will create a nice place where kids can specifically go to school for a subject matter and then actually use it at our operation.”

The company has also secured local tax incentives and enjoys robust community and regulatory alignment, further de-risking the development path.

The Investment Thesis for NioCorp

• Multi-Mineral Exposure: Investors gain exposure to four critical minerals with diverse industrial applications and strong long-term demand fundamentals.
• Permitted and Advanced: Fully permitted with technical studies nearly complete, NioCorp is closer to construction than most U.S. peers in the critical minerals space.
• Strong Offtake Coverage: Binding agreements already in place for ~75% of niobium, 100% of scandium, and discussions for 100% of rare earths support cash flow visibility.
• Government Support: Access to low-cost debt via the U.S. EXIM Bank positions NioCorp as a flagship project within national critical mineral strategies.
• Proven Leadership and Engineering: Veteran team with rare earth processing experience from Molycorp, and committed EPC contractors already engaged.
• Capex Optimization: Recent engineering changes may reduce capital requirements by ~$300 million versus the 2022 study, despite inflation pressures.
• Community Backing: Strong state and local support reduce permitting and social license risks, aiding long-term operational security.
• Strategic Location: Located in the U.S. heartland, the project is well-positioned to serve North American and European critical mineral supply chains.

Macro Thematic Analysis

The NioCorp project is emblematic of a broader trend toward reshoring supply chains for critical minerals essential to national security, energy transition, and high-tech manufacturing. The U.S. remains almost entirely dependent on imports for niobium, scandium, and magnetic rare earths—materials vital for electric vehicles, wind turbines, and defense systems.

This vulnerability has prompted bipartisan action across U.S. administrations. Recent executive orders under the Trump administration, combined with low-cost financing from institutions like the EXIM Bank, highlight a shift from rhetoric to implementation.

Smith underscored the urgency:

“We have people working on our project specifically. The reception we’re getting is second to none in my 44-year career.”

The transition from Chinese-dominated processing and supply toward diversified and domestic solutions is no longer speculative. For investors, NioCorp offers a vehicle aligned with long-term structural tailwinds in materials security, national policy, and global industrial transformation.