(KLZA)-- The U.S. Department of Defense has agreed to award up to $10 million to Elk Creek Resources Corporation, a subsidiary of NioCorp Development which is developing the Elk Creek Project that is expected to produce niobium, scandium and titanium.

The company is also evaluating the potential to produce several other rare earth elements from the project near Elk Creek, Nebraska.

The money will be to support the establishment of a domestic scandium mine-to-manufacture supply chain through the Elk Creek Critical Minerals Project. This would be the first domestic scandium mine-to-master-alloy supply chain in the U.S.

The award of up to $10 million is subject to the achievement of certain milestones, from the U.S. Department of Defense via Title III of the Defense Production Act.

Currently, the U.S. is completely or largely reliant on foreign producers of these rare earth elements.

Niobium is used to produce specialty alloys as well as High Strength, Low Alloy steel used in automotive, structural and pipeline applications.

Scandium is a specialty metal that can be combined with aluminum to make alloys with increased strength and improved corrosion resistance.

It can also be a critical component of advanced solid oxide fuel cells.

Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.

The Department of Defense support is expected to facilitate the U.S. Export-Import Bank's consideration of up to $800 million in debt financing to NioCorp in a “Whole of Government” approach to critical minerals development.