NioCorp has signed trader Traxys to buy half of its planned ferroniobium and all its other products from Nebraska's Elk Creek mine, so all its planned output now has buyers. The project still needs about $840 million in funding.
At a glance
- Thyssenkrupp's existing deal for the other half of Elk Creek's ferroniobium stays in place.
- Traxys is part of Project Vault, a US plan to build a civilian stockpile of critical minerals.
- The head of the US Export-Import Bank signed a letter of support for about $840 million of NioCorp's funding.
Background
Niobium is a metal added in tiny amounts to steel to make it stronger and lighter, mostly in the form of ferroniobium, an iron-niobium alloy. NioCorp is developing the Elk Creek project in Nebraska, which would also produce scandium, titanium and rare earths used in magnets. US officials see it as a way to make these materials at home instead of importing them.
What happened
NioCorp said on October 13 that commodity trader Traxys will buy 50% of the ferroniobium it plans to produce at Elk Creek, Fastmarkets reported. Traxys also gets the exclusive right to buy NioCorp's planned scandium, titanium and rare earth products, and becomes its exclusive global marketing and sales partner. The binding agreement replaces earlier arrangements between the two companies.
NioCorp expects to produce 8,095 tonnes of ferroniobium a year, plus 118 tonnes of scandium oxide and 672 tonnes of NdPr oxide, a rare earth used in magnets. "Every product we plan to produce at Elk Creek is now supported by long-term commercial agreements for 15 years of operations," chief executive Mark Smith said.
Why it matters
Lenders want sales contracts before they fund a new mine, because contracts show the output can be sold. With all products covered, NioCorp has removed one of the main questions over financing. Thyssenkrupp Metallurgical Products still holds the deal for the other 50% of ferroniobium for the first 10 years.
The deal also ties Elk Creek to Project Vault. That US initiative aims to build a civilian stockpile of essential raw materials, backed by up to $10 billion in loans from the Export-Import Bank (EXIM). Traxys and other US trading houses provide sourcing, logistics and capital for the programme, which began operating in September.
What comes next
Funding is the next step. US Energy Secretary Chris Wright visited the site on October 14 with EXIM president John Jovanovic, KOLN reported. Jovanovic signed a letter of support for about $840 million that NioCorp still needs. He said the letter is not the funding itself, and that EXIM is in the final stages of due diligence and documentation.
Nebraska Governor Jim Pillen said the mine is planned to open in late 2029. Traxys is also discussing a separate equity investment of up to $30 million in NioCorp. In August, NioCorp signed a memorandum of understanding with Lockheed Martin for up to 15 tonnes a year of scandium oxide or aluminium-scandium alloy.
Our read
Outlook: neutral. Elk Creek is years from production, so the deal does not change niobium supply today. It matters more for future US supply security than for current prices.
What to watch
- Whether EXIM finalises the roughly $840 million in financing for Elk Creek.
- Whether Traxys goes ahead with its possible equity investment of up to $30 million in NioCorp.
For information only, not investment advice.
Detailed analysis
Timeline
- 2026-10-13: NioCorp announces the Traxys sales agreement covering Elk Creek's remaining output.
- 2026-10-14: US officials visit Elk Creek, and EXIM signs a letter of support for about $840 million.
Supply Drivers
Elk Creek would add a US source of niobium, scandium and rare earths, materials the US now imports.
Government Policies
Project Vault and EXIM financing show Washington is directly backing domestic critical mineral supply.
Geopolitical Risks
US officials framed the project as a way to cut reliance on China for defence materials.
What could lift prices
- US government support could keep Western demand strong for non-Chinese critical minerals.
- Defence buyers such as Lockheed Martin are seeking secure scandium supply.
What could weigh on prices
- New output from Elk Creek would add ferroniobium supply once it opens.
- The funding is not final, so the project's timeline could still slip.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Medium | Elk Creek would give the US a domestic source of niobium, scandium and rare earths. |
| China | Low | US officials framed the project as a way to cut reliance on Chinese critical minerals. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Critical Minerals Mining | Positive | Full offtake cover and EXIM support improve the case for financing US projects. |
| Aerospace & Defence | Positive | Defence makers could gain a domestic supply of scandium and rare earths. |
Who gains, who loses
- Traxys: It gains exclusive rights to market most of a new US critical minerals mine's output.
- Foreign suppliers to the US: US officials want Elk Creek to replace imported critical minerals, especially from China.
Other ways this could play out
- If EXIM closes the financing soon, construction could move toward a late-2029 opening.
- If the financing is delayed, the 15-year sales contracts alone will not get the mine built.
Price risks
- A delay in funding would push back any new US supply.
- Changes in US critical minerals policy could affect Project Vault's role.
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