Defense Department Funded Scandium Recovery Research

The Pentagon awarded a contract to a Texas startup to develop technology for sourcing critical rare earth elements domestically.

Updated on Sept. 30, 2026 in Materials Science

Defense Department Funded Scandium Recovery Research

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Should the U.S. government prioritize domestic production of critical minerals like scandium over foreign imports?

The U.S. Department of Defense has awarded a Phase I Small Business Innovation Research contract to Supra Elemental Recovery. The startup will evaluate the feasibility of its proprietary chemical separation technology to recover scandium from industrial feedstocks.

Why it matters

The project aims to reduce dependence on foreign sources by diversifying the domestic supply chain. Currently, the United States relies entirely on imports for scandium as there is no commercial production within the country.

The study utilizes chemical separation to extract minerals from industrial byproducts, aiming to replace a total dependence on imports. The feasibility research will determine if this proprietary technology can scale for domestic production.

The players

Supra Elemental Recovery

This technology startup originated at the University of Texas at Austin and focuses on recovering rare earth elements from industrial byproducts.

U.S. Department of Defense Defense Logistics Agency

This agency is a combat support organization that provides logistics, acquisition, and technical services to the U.S. military and federal government.

The details

Supra Elemental Recovery, which originated from the University of Texas at Austin, focuses on refining critical minerals at industrial and mining sites. The startup plans to test its separation platform against relevant feedstocks to assess the viability of future domestic scalability.

September 30, 2026: Supra Elemental Recovery announced the contract award.

The Big Picture

This project aligns with the Small Business Innovation Research (SBIR) program, which incentivizes private sector research into national security needs. By targeting scandium, the effort addresses a significant vulnerability in the U.S. mineral supply chain.

If successful, this technology could establish a domestic source for critical materials used in high-tech manufacturing and aerospace. Future scalability may eventually reduce the reliance of U.S. industries on international market fluctuations for rare earth elements.

The takeaway

Developing domestic extraction methods for rare earth minerals remains a priority for strengthening industrial supply chains. This initial phase of research will determine whether advanced chemical separation can effectively turn industrial waste into a viable source of scandium.