Here is what is known about the growing military ties:

THE LATEST REPORTS

A North Korean missile unit has begun deploying to western Russia and could be equipped with up to 120 ballistic missiles and six launchers for attacks on Ukraine, an official at Ukraine’s GUR military intelligence agency said.

The unit comprises about 90 North Korean personnel and is expected to be based in Russia’s Voronezh region, the official said. The United States is aware of the North Korean deployment, a source familiar with the issue told Reuters.

Forty North Korean missiles have already been supplied, at least two of which were launched at Ukraine last week during a deadly strike, the Ukrainian official said.

Ukrainian President Volodymyr Zelenskyy said in July that Russia wanted to bring in 30,000 North Korean troops and was preparing facilities in Voronezh to receive them.

Reuters could not independently verify that statement.

HOW MANY NORTH KOREAN TROOPS WERE SENT TO RUSSIA IN 2024?

North Korea sent around 14,000 to 15,000 soldiers to Russia’s Kursk region, according to Ukrainian and South Korean estimates, helping Moscow’s forces repel a surprise Ukrainian ground incursion.

Russia and North Korea confirmed in April 2025 that North Korean troops had fought Ukrainian forces in Kursk.

Russia’s top military commander praised their role after Moscow said it had retaken Kursk territory, while Pyongyang said the deployment was ordered by leader Kim Jong Un.

The Ukrainian official said this month that around 9,500 North Korean troops remained in Kursk, but were not directly involved in operations against Ukraine.

WHAT OTHER PERSONNEL HAS NORTH KOREA SAID IT WILL PROVIDE?

In June 2025, Russian Security Council Secretary Sergei Shoigu said North Korea would send 1,000 sappers and 5,000 military construction workers to Kursk to clear mines and help rebuild infrastructure damaged in the fighting.

That same month, South Korean lawmakers, citing a briefing by the National Intelligence Service, said that North Korea appeared to have begun recruiting personnel for an additional deployment to Russia, while continuing to supply Russia with artillery ammunition and missiles in exchange for economic cooperation and technical assistance.

It remains unclear how many engineers, deminers or additional troops have arrived in Russia, or whether they have been used in combat roles.

WHAT WEAPONS HAS NORTH KOREA PROVIDED?

North Korea has supplied Russia with millions of artillery and mortar rounds, ballistic missiles, long-range artillery and multiple-launch rocket systems, according to Ukrainian and independent assessments.

A Reuters analysis with the British-based Open Source Centre found four Russian-flagged cargo ships made 64 voyages to North Korea’s Rajin port between September 2023 and March 2025, transporting nearly 16,000 containers of ammunition to Russian ports.

Ukrainian officials said North Korea was supplying about half of the munitions Russia needed on the front lines.

Ukraine’s military intelligence agency said that North Korea had delivered 4 million artillery shells since mid-2023, excluding mortar rounds. It said North Korea had supplied 148 KN-23 and KN-24 ballistic missiles by the start of 2025.

WHY IS NORTH KOREA HELPING RUSSIA?

Russian President Vladimir Putin and North Korean leader Kim signed a comprehensive strategic partnership treaty during Putin’s June 2024 visit to Pyongyang. The pact includes a mutual assistance provision if either country faces external aggression.

North Korea has cast its deployment as assistance to a treaty partner. Kim said in May 2025 that participation in the war was justified as an exercise of North Korea’s sovereign rights in defense of a “brother nation.”

Analysts say Pyongyang stands to gain hard currency, oil and other economic support, as well as access to Russian military technology and battlefield experience for its forces and weapons.

North Korean soldiers have gained combat exposure to drones, electronic warfare, artillery coordination and modern battlefield tactics, while its missile and ammunition makers have been able to assess their equipment in wartime conditions.

THE INTERNATIONAL REACTION

The United States and its allies have said the troop deployments and arms transfers violate U.N. Security Council resolutions on North Korea.

Pyongyang has been subject to U.N. sanctions since 2006 over its nuclear weapons and ballistic missile programs. The sanctions prohibit countries from hosting North Korean trainers, advisers or other officials for military, paramilitary or police training.

Washington imposed additional sanctions in December 2024 on North Korean and Russian entities connected to Pyongyang’s military and financial support for Moscow. South Korea also blacklisted individuals and entities linked to illicit military cooperation between the two countries.

NATO has said Russia’s growing military and economic ties with North Korea, China and Iran pose a threat beyond Europe, extending to the Indo-Pacific and North America.

Reuters reported this week that the U.S. Army had used up much of its global stockpile of long-range precision missiles during the five-month conflict with Iran, raising concerns about military readiness for future crises.

President Donald Trump on Thursday played down concerns over weapons shortages, saying the U.S. had an almost unlimited supply of some munitions while acknowledging stocks of others were tighter. He added that U.S. defense companies were expanding production capacity.

Rheinmetall signed a memorandum of understanding with Lockheed last month to jointly produce Army Tactical Missile Systems, or ATACMS, at Rheinmetall’s Unterluess plant in northern Germany. Production facilities are due to be set up next year.

“Naturally, there will also be sufficient capacity to replenish the U.S. military arsenals depleted by the conflict involving Iran,” CEO Armin Papperger told Reuters in an interview conducted on Thursday but published on Friday.

“That won’t happen in two years. It will take much longer.”

Defense companies across the world are racing to meet a surge in demand as governments step up military spending amid conflicts in Ukraine and the Middle East, and U.S. pressure for Europe to take more responsibility for its own security.

Helping build Europe’s defenses

Rheinmetall has been among the biggest beneficiaries of Europe’s drive to raise defense spending.

Europe’s largest ammunition maker has pursued partnerships and acquisitions to rapidly expand production capacity to meet growing demand.

The ATACMS joint venture still requires approval, but Papperger said the process was well advanced and had the backing of the U.S. government.

The partners intend to target the global market for ATACMS missiles, he added. “There will be a market for missiles for the next 15 years.”

Rheinmetall expects the joint venture to generate its first revenue in 2028, the CEO said.

Talks needed with new Leonardo CEO

Papperger said Rheinmetall remained interested in acquiring Iveco’s military truck business from Italy’s Leonardo, but future talks would depend on new CEO Lorenzo Mariani.

“I had a handshake agreement with his predecessor,” said Papperger. “Mariani can decide on new terms, and we will see if they remain attractive to Rheinmetall.”

The deal is not at risk, Papperger added, saying he hopes to meet Mariani after the summer break.

Boxer contract expected by year-end

Rheinmetall, which on Thursday cut its sales outlook after Germany canceled its F126 frigate program, also expects a multibillion-euro contract to supply Boxer armored vehicles to the German military to be signed by year-end, Papperger said.

“There is absolutely nothing standing in the way,” he said.

Rheinmetall’s share of the contract would be worth €12.4 billion ($14.3 billion), while the total value, including partner KNDS, is expected to reach about €25 billion.

The warning envisaged attacks on the energy facilities, oil fields, refineries, electricity grids, water infrastructure, transport networks and other strategic assets of Washington’s closest Arab allies, according to a senior Iranian official.

The message, part of a broader Iranian effort to deter further U.S. military action by raising the prospect of severe economic disruption across the Gulf, was delivered through a flurry of high-level diplomatic contacts after Trump threatened on July 28 to strike Iran’s energy network and infrastructure, the sources said.

Two senior Iranian officials, two Gulf sources and a senior regional diplomat with knowledge of the discussions said Iranian Foreign Minister Abbas Araqchi spoke with his Saudi, Turkish and Qatari counterparts, as well as Pakistan’s army chief. All spoke on condition of anonymity because of the sensitivity of the matter.

Araqchi urged Washington’s Gulf allies to use their influence with Trump to dissuade him from launching renewed strikes, the senior diplomat said, warning that any attack on Iran would prompt retaliation against U.S. assets and critical infrastructure across the Gulf.

His message was consistent in every conversation, the diplomat said: “We’re ready to retaliate, but finding a diplomatic solution is the best way to avoid wider escalation and destruction across the region.”

“The Iranian warning was unequivocal: if America targeted Iran’s infrastructure, they would retaliate by striking Gulf energy facilities and other regional targets,” one Gulf source said.

The diplomatic campaign underscores how Iran is seeking to turn Gulf vulnerability into leverage, confronting regional governments with the prospect that any renewed U.S.-Iran confrontation could place the infrastructure underpinning their economies directly in the firing line.

Saudi Crown Prince Mohammed bin Salman subsequently spoke with Trump, urging him to delay military action, return to negotiations, secure a ceasefire and pursue a diplomatic settlement, the senior diplomat and Gulf sources said.

The warning was intended for every Gulf state, another Gulf source said, but was conveyed primarily through Saudi Arabia and Qatar. In recent years, Iran has repaired ties with its Gulf neighbours, including its former regional rival, Saudi Arabia.

Qatar, Oman and Saudi Arabia have all urged Washington to resume talks with Tehran and avert renewed conflict amid Iranian warnings that another round of U.S. strikes could “turn the region into a fireball,” the second Iranian official said.

On Aug. 2, Trump said he agreed to cancel the attack on Iran “subject to being able to rapidly make a deal”.

THREATS OF WIDER REGIONAL ESCALATION

“Saudi Arabia believes further escalation will only bring more destruction,” the first Gulf source said. “That is why it urged Trump to give diplomacy a chance.”

While urging Washington to pursue diplomacy, Riyadh also made clear it would defend itself if threatened. The second Gulf source said Saudi Arabia warned that any attack on its territory would be met with a military response.

Ali Shihabi, a Saudi analyst close to the Royal Court, said the kingdom’s assessment is that further escalation is unlikely to achieve the desired result.

“The Kingdom believes a combination of proportionate military responses and sustained pressure on Iran in the Strait of Hormuz offers the strongest path toward a practical diplomatic settlement,” Shihabi said.

Iran’s clerical leadership has repeatedly demanded the closure of U.S. military bases in the Gulf and called on Gulf Arab states to stop sharing intelligence with Washington, which Tehran believes has been used to facilitate attacks against it.

“They still remember Saudi Arabia’s Aramco,” he added, referring to the September 2019 drone and missile attacks on the Abqaiq and Khurais facilities that temporarily knocked out more than half the kingdom’s crude oil production and exposed the vulnerability of Gulf energy infrastructure.

“The enemy continues to threaten Iranian infrastructure. If Iran suffers damage, it will inflict far greater damage in return,” added the Iranian official who cited the target list including power grids and refineries.

From Tehran’s perspective, Trump now faces two unpalatable choices, the senior Iranian official said: escalate a conflict that could engulf the Gulf and disrupt global energy supplies, or accept a negotiated outcome that falls short of the decisive victory Washington seeks.

One of the principal obstacles to an agreement, the senior regional diplomat said, is Washington’s reluctance to allow Tehran to emerge claiming victory.

“The United States wants something it can present as proof that it won the war,” the diplomat said.

Rheinmetall now expects sales in the range of €13.7 billion to €14.2 billion ($15.8 billion to $16.4 billion), down from €14.0 billion to €14.5 billion previously, based on a €300 million hit to its naval division.

It also cut its order book guidance to more than €100 billion, from roughly €135 billion previously, and lowered its capital expenditure target to 8%-9% of sales from 16%.

The company left its free cash flow conversion ratio and margin targets unchanged and said it remained on track for record growth.

JPMorgan analysts said they had expected the canceled frigate program to have made more of an impact beyond 2026 and said the downgrades could signal slower growth in 2027-28.

Rheinmetall had reported a nearly 70% jump in second-quarter sales to about €3.3 billion, with all business segments contributing to the rise, in an unscheduled release last month.

Its shares fell as much as 4% in early trading before paring losses to trade 1.2% down by 0745 GMT.

DENTED AMBITIONS

Rheinmetall has seen its fortunes soar with Europe’s renewed interest in building up its defenses after Russia invaded Ukraine in February 2022, with Europe’s largest ammunition maker targeting annual sales of up to €50 billion by 2030.

The company completed the acquisition in March of the warship division of German shipbuilder Luerssen as part of its ambitions to become a bigger player in the naval sector.

It has also been considering acquiring German Naval Yards Kiel and promised to reach a final decision within weeks after a rival bidder withdrew from the process last month.

The German government’s decision in June to scrap a delayed frigate program for which Rheinmetall had looked likely to secure the contract tempered the company’s upward momentum.

“In the naval business, too, we are looking to the future and are working hard to fulfil our current maritime orders as a reliable partner with a high level of expertise, and to secure new ones on the international stage as well,” said Chief Executive Armin Papperger on Thursday.

The Trump administration in December announced its intention to build a new class of large surface combatants, designated as the Trump-class guided missile battleship.

If built, the 35,000-ton nuclear battleship, according to the report, will be the most heavily armed surface vessel the U.S. Navy has ever built, possessing anti-air, land-attack and anti-ship missiles, hypersonic missiles, nuclear cruise missiles, large lasers and a rail gun.

“If built to those specifications, the ship would be the largest surface combatant in the world and larger than any surface combatant built for the Navy since World War II,” according to the report. “It would be more than three and a half times the size of the Navy’s Arleigh Burke-class guided missile destroyer and more than twice the size of the Zumwalt-class guided missile destroyer.”

The Navy projects that between 2028 and 2056 it will build 15 Trump-class guided missile battleships, with the subsequent 14 costing $18 billion each. By contrast, the USS Gerald R. Ford, the U.S. Navy’s premier nuclear-powered aircraft carrier, cost approximately $13.3 billion.

By 2058, the total tonnage of “large surface combatants to be constructed would need to increase by 60 percent,” which the report notes “could be a challenge for the shipbuilding industry.”

The shift away from small surface combatants would mean that by 2035, shipyards would need to produce 12% greater tonnage under the 2027 plan than under the 2025 version, according to CBO’s estimation.

To keep pace with the service’s aims, the Navy would need to build a battleship about every other year from 2028 to 2056, the report notes, while continuing to produce two DDG-51 destroyers per year.

Last March, the Government Accountability Office released a report detailing nearly two decades of lackluster progress in U.S. shipbuilding. According to the GAO, not enough ships have been built, newly constructed ships are failing to function as expected and ships are being delivered up to three years later than ordered.

In a statement to the Senate Armed Services Committee, Shelby S. Oakley, a director at GAO, said that unrealistic expectations of costs and timing have diverted resources and introduced delays in shipbuilding, with the result that Navy programs and shipbuilders have been “effectively made to operate in a perpetual state of triage.”

The report also notes that while the price tag will be immense up front, over time, by switching to nuclear power, it would reduce the battleship’s operating costs by eliminating the need to purchase fuel. The GAO did not provide an estimate of possible savings.

Since the December announcement, the cost of Trump-class battleships has been a moving target, with the updated $23.4 billion roughly six billion more than the initial Navy projection.

Firestorm Labs manufactured more than 1,000 parts and 12 of its proprietary 3D-printable first-person view Squall drones aboard the Wasp-class amphibious assault ship USS Essex as it transited toward RIMPAC 2026 in Hawaii, according to a release.

“Every part xCell printed on deck is one that doesn’t need to be flown or shipped across contested waters — cutting the fuel, aircraft hours, and personnel it takes to keep a ship operational,” a social media release said. “Repairs that once meant days or weeks waiting on a resupply run can now happen in hours, on station.”

Firestorm Labs created the xCell as a factory-in-a-box that can be deployed aboard U.S. Navy vessels to churn out unmanned aerial systems and spare parts for expeditionary warfare.

As waves as high as 12 feet crashed against the ship, service members assembled drones that were later flown as adversary aircraft during a counter-drone exercise at RIMPAC 2026 in Hawaii.

The service members also helped print mechanical test components that assessed the efficacy of the 3D printer used for drone production and fabricated military repair parts that crew members of the USS Essex needed.

The Defense Department, and Navy in particular, is laser-focused on building out modular payload capabilities that can deliver mission-ready assets for the service.

Chief of Naval Operations Adm. Daryl Caudle announced the “containerized capability campaign plan” in March at the McAleese Defense Programs conference.

Caudle outlined a vision in which transportable containers housing defense capabilities such as drones and weapons can be deployed to any region in the world.

In May, the Pentagon announced framework agreements with defense companies Anduril, CoAspire, Leidos and Zone 5 to acquire more than 10,000 containerized missiles over three years beginning in 2027.

The move signaled the launch of the “Low‑Cost Containerized Munitions (LCCM) program.”

The extension is in line with the Trump administration’s efforts to curb illicit narcotics flowing into the United States via alleged drug-carrying vessels in the Caribbean Sea and eastern Pacific Ocean.

Since 2023, Saildrone’s USVs have worked in coordination with the U.S. Navy, supporting the Joint Interagency Task Force South (JIATF-S) and U.S. Naval Forces Southern Command/U.S. Navy Fourth Fleet, per the release.

“The continuity of Saildrone’s presence along the southern border for nearly three years demonstrates the strategic value we bring as the world’s most experienced operators of unmanned surface vehicles,” said Saildrone President VADM (ret.) John Mustin. “Our unmatched ability to remain on station and on mission in critical regions for months at a time is why our fleet serves as a powerful deterrent to bad actors. We look forward to continuing to partner with the Navy in its mission to secure the country’s maritime approaches and southern border.”

The 33-foot-long Voyager is designed for persistent surface and subsurface surveillance and can also conduct nearshore mapping missions and seafloor characterization, the release states.

Able to remain “on mission and on station” for months at a time, the USVs are “both a deterrent and an alarm” along the U.S.’s expansive southern maritime border, according to the company.

Since September 2025, the U.S. military has conducted strikes against alleged drug-carrying vessels in the Caribbean Sea and eastern Pacific Ocean in support of what the Pentagon has called continued counternarcotics efforts.

As of June 22, the Trump administration and U.S. military have disclosed 66 strikes, killing at least 196 people.

The 10-day annual Han Kuang exercise began early in the morning after an underground command center in Taipei issued the drill order, triggering combat-readiness moves that will include fighter-jet dispersals and emergency naval deployments, two senior Taiwan officials briefed on the matter told Reuters.

Taiwan will also incorporate for the first time a so-called “backbrief” approach modeled on U.S. military practice, in which junior officers receiving orders restate mission details to commanders — a move aimed at improving coordination, the officials added, requesting anonymity due to the sensitivity of the matter.

The move, one of the officials said, is to “ensure commanders and subordinates are in sync on operational intent.”

The drill will also focus on a key wartime concern: that China, which claims Taiwan as its own despite the island’s objections, would try to paralyze command centers, ports, logistics and defense industry sites early in an attack.

China’s defense ministry did not respond to a request for comment. China has never renounced the use of force to bring Taiwan under its control.

Wartime Relocation

Held annually since 1984, the drills will include for the first time the deliberate slowing of mobile internet speeds to test how civilians would communicate if bandwidth became scarce.

The military will simulate the wartime relocation of a major arsenal, mobilize civilian factories and run escort drills off Taiwan’s Pacific coast, as concern grows that Beijing may be rehearsing how to sever the island’s Pacific supply lines from allies as Chinese military pressure intensifies.

“These are all part of a series of toughening exercises — this is no longer a laboratory-like exercise in a vacuum,” said a third senior official, speaking on condition of anonymity due to the sensitivity of the operation.

“You are entering a real field environment, facing real bottom-line conditions. We hope the final phase of training reaches that state,” the defense official said.

That is part of Taiwan’s ongoing effort to make its exercises more realistic, following past criticism that some drills were too highly staged.

Resilience Drills

The effort has included resilience drills testing how local officials would keep the government running during cascading crises, from earthquakes to a Chinese invasion.

“If the situation does not match the original enemy scenario, what should he do? How should he reassess, readjust, and quickly issue orders?” the defense official said, referring to field commanders who will be tested with “unexpected scenarios” during the drills, which end on Aug. 14.

The drills will also mobilize more than 20,000 reservists.

On the sports field of a Taipei high school on Wednesday, dozens of reservists gathered to practice using mortars and taking up rifle positions.

The military will also introduce an “embedded reporter” mechanism to assess wartime frontline news releases and efforts to counter enemy disinformation, the officials said.

“The emphasis will be on how our entire population, the Republic of China as a whole — especially our citizens — should face war,” the defense official said, using Taiwan’s official name.

Since the start of the year, at least six defense-automotive tie-ups have been announced, as President Emmanuel Macron’s government seeks to combine the scale, automation and cost discipline of France’s car sector with one of the fastest-growing segments of military technology.

Ukraine and Russia’s use of drones has reshaped warfare, and that has prompted France and its European allies to prioritise drone production, as pressure from Washington on Europe to boost its military capabilities has added urgency.

The projects indicate France is building an industrial base capable of producing tens of thousands of drones a year — a scale difficult for defense startups to achieve alone, albeit one still dwarfed by Ukrainian and Russian efforts.

FRANCE AIMS FOR SCALABLE DRONE PRODUCTION

“Why now? Because the need is now, drones are now,” Christophe Périllat, chief executive of auto parts supplier Valeo, told reporters at the end of July. “And why in France? Because we’re being asked to guarantee our sovereignty.”

French defense officials do not anticipate a near-term need to deploy a large number of drones in the skies above France, but say it must be prepared for conflict.

The goal is to give France the ability to produce drones quickly and ramp up output should a crisis arise, they say. A July report by the French Senate’s defense committee described France’s stock of just a few thousand drones as “insufficient to achieve a critical mass.”

Valeo has said it will manufacture electric drone motors in France for defense technology firm Harmattan AI. Meanwhile, Forvia unveiled a partnership last week with a European defense company specialising in AI-powered counter-drone systems and is weighing plans to build capacity in France to manufacture 1,000 interceptor drones each month.

Renault, already working with Turgis & Gaillard to develop a long-range drone, partnered with Thales in June to industrialise production of the Toutatis kamikaze drone, targeting up to 1,000 units per month from 2027.

French drone maker Delair teamed up with German automotive supplier Schaeffler the same month to establish a French production line capable of producing around 100 drones per day by November.

SIMPLIFYING DRONE PRODUCTION FOR SCALE

If the plans announced by Renault, Schaeffler and Forvia are realized, combined output could reach 60,000 units per year. In a conflict, many more would be needed.

Drones have been used in warfare for decades, but the war in Ukraine has seen an explosion in scale.

Drones now dictate the flow of the battlefield, notching up the vast majority of kills. The front line has turned into a “kill zone,” with soldiers hiding underground from the constant aerial threat.

After Russia’s full-scale invasion in 2022, Ukraine quickly accelerated its use of drones for reconnaissance, battlefield combat and long-range strikes. President Volodymyr Zelenskiy said in July that it will produce 10 million in 2026.

Ukraine now has hundreds of drone makers, big and small. Some even produce more than Ukraine’s military can buy, and the government has cautiously moved towards allowing them to export some excess production.

Patrick Pailloux, head of France’s defense procurement agency, said he was working in particular with auto subcontractors to design drones that France will be able to produce in large quantities.

“It’s not the same: producing a drone in a defense start-up and making something that can be reproduced in very large volumes using production-line robots,” he said.

Renault CEO François Provost said in June the Toutatis kamikaze drone was being redesigned with fewer components and from injection-moulded plastic, enabling cheaper, higher-volume production than the current 3D-printed model.

ENOUGH DRONES TO TRAIN ON, BUT NOT MILLIONS

Defense officials say the challenge is scaling up production capacity while not building stockpiles that could soon become obsolete.

Patrice Caine, CEO of French defense technology group Thales, said this summer that drones were “objects that evolve quickly” under the impetus of technological advances.

Pailloux said France needed “enough so that we can train, and (the production capacity) to be able to withstand a shock”.

Prime Minister Sebastien Lecornu pledged a €150 million ($175 million) investment to develop a dedicated drone sector last December.

But Antoine Level, head of France’s drone industry association, said Germany was ahead of France in funding short-range drones, and that there were still “not enough orders to truly stimulate the industry.”

The world’s largest defense contractor is negotiating with NioCorp Developments for the supply of scandium, and Teck Resources and 5N Plus for the supply of germanium, both of which are used in military equipment ranging from aircraft components to infrared sensors, the sources said.

The deals would mark a significant step in the U.S. push to build domestic mineral supply chains, but face hurdles: Chinese suppliers have long offered lower prices, and U.S. mining and processing capacity remains limited.

Lockheed makes the F-35 Lightning II fighter jet, Patriot interceptor missiles and other weaponry for the U.S. government. As China has tightened controls on critical minerals exports in recent years, Trump has pressured Lockheed and its peers to support U.S. mines with long-term supply deals.

Last month, he signed an executive order making it harder for defense contractors to obtain waivers that had allowed them for years to buy minerals from China and other prohibited foreign suppliers.

That order has highlighted how far behind U.S. miners and processors are in their race to match China’s market dominance, even as dozens of U.S. projects for a range of minerals are under development, Reuters reported last week.

Colorado-based NioCorp Developments has signed a preliminary deal to supply Lockheed with 15 metric tons per year of scandium, one of the 17 rare earths that can be used to make lightweight, corrosion-resistant alloys for aircraft, according to a source familiar with the agreement and details seen by Reuters. These have not been previously reported.

NioCorp will supply the metal from its Nebraska mine, slated to open by 2028 with annual production of 100 metric tons.

The agreement would need to be finalized, although the two companies have an existing relationship as part of a Pentagon-funded research program.

The contracted volume would be roughly a quarter of global scandium demand, which the U.S. Geological Survey estimates at about 60 metric tons and rising.

“Both companies recognize how important scandium has become to the future of American defense technology,” said Mark Smith, NioCorp’s CEO.

Lockheed said it appreciated “the work NioCorp is doing to establish a domestic source of scandium.”

The U.S. has not mined scandium since 1969. Rio Tinto is the only North American scandium producer, with capacity to produce roughly nine metric tons annually.

Germanium negotiations

Separately, Lockheed is in talks with Teck Resources for a supply of germanium, used to make infrared sensors and other military equipment, a second person familiar with those negotiations said.

Teck mines and produces a zinc and germanium concentrate from its Red Dog mine in Alaska. That concentrate is then smelted in British Columbia and the two metals are separated.

Teck does not break out its annual germanium production but has called itself the largest North American producer and fourth-largest globally. The USGS estimates that global germanium consumption is roughly 60 metric tons annually and rising.

The U.S. imports more than half of its germanium needs.

Lockheed is also in germanium supply talks with Quebec-based 5N Plus, which earlier this year received Pentagon funding to process the metal from recycled feedstock in Utah, the second source added.

“What Lockheed basically wants is a long-term supply chain security,” according to the second source. “Because they are under pressure, so they really want to know if the supply is coming from China or elsewhere.”

Negotiations with both Teck and 5N have been going on for more than a year. Pricing and the length of the contracts have been sticking points, according to the source.

Representatives for 5N were not immediately available to comment. Teck declined to comment on specific commercial agreements, but said it has agreed to work with the Canadian government to increase germanium processing in British Columbia.

Asked about the germanium discussions, Lockheed said it continuously assesses “the global critical minerals supply chain to ensure access to materials that support our customers’ missions.”

Chinese critical minerals prices have for years been cheaper than those from Western sources due to differences in mining practices, regulatory standards and other factors. Reuters reported earlier this year that Western governments are trying to set regional minerals prices free from Chinese interference.