China has expanded export restrictions to cover nearly all 17 rare earth elements (REEs), requiring special licenses for exports. Let’s look at one of these REE’s – Scandium:
Scandium is a rare transition metal closely associated with the rare earths complex (rare implies found in low concentrations). Its primary value lies in its use as an aluminum hardener, where small additions (less than 1 per cent) can materially improve strength, corrosion resistance and weldability. Despite promising end uses, scandium remains constrained by extremely limited and fragmented supply. It rarely forms standalone deposits and is usually recovered as a byproduct from laterites, bauxite residue (red mud), or uranium/titanium streams.
Supply/demand
In 2024, industry estimates cited by USGS suggest about 40 tonnes of scandium oxide (SC2O3) equivalent production occurred, recovered from cobalt, nickel, titanium and zirconium process streams. China dominates refined supply, followed by Russia and small-scale operations elsewhere. There is currently no large-scale primary scandium mine with a few in development.
Demand is niche, focused on aerospace alloys, solid oxide fuel cells (SOFCs), and specialty lighting. Medium-term growth depends on broader adoption of Al‑Sc alloys in automotive and defence applications.
Canadian focus
One reason for discussing scandium is the listing of a number of stocks on the TSX-V JX with a primary interest in scandium or it as a byproduct. Canada is emerging as a strategic scandium jurisdiction, particularly through Quebec-based projects. Rio Tinto’s RIO-N scandium oxide demonstration plant in Quebec highlights Canada’s role in potential Western supply chains. Other companies listed in Canada include Scandium Canada Ltd. SCD-X with a primary-source scandium deposit at Crater Lake in Nunavik, Scandium International Ltd. SCY-X with the Nyngan Scandium Project in NSW, Australia as well as Doubleview Gold Corp. DBG-X and Globex Mining Enterprises Inc. GMX-T, both having scandium as part of their mineral complex. Beyond the Canadian markets other names in the space include NioCorp Developments NB-Q which has Scandium as a byproduct with niobium and titanium at Elk Creek, Nebraska and Sunrise Energy Metals SREMF with a primary scandium project in NSW Austrailia.
Scandium stocks have seen a significant increase in price over the last one to two years with the recognition of scandium as a critical mineral in a number of jurisdictions, geopolitical uncertainty for supply and advancements in extraction that could lead to larger supply (which is good in this case).
Pricing and market transparency
There is no transparent exchange market for scandium price discovery. Most activity occurs via long-term contracts for scandium oxide and Al-Sc master alloys/powders, and quoted prices can vary by purity, lot size, and delivery terms. Published prices from USGS indicate a historical range of US$3,500–$5,000 per kg of Sc2O3 down to the current US$650/kg level. Other prices found range from US$1,500 per kg for Sc2O3 from a 2025 study to as much as US$500,000 per kg for pure (99.999 per cent) Scandium metal. Ironically, scandium-oxide appears to be experiencing an oversupply risk not due to supply issues but rather demand uptake.
Scandium uses
Scandium is a highly effective micro-alloying element for aluminum. Even small additions can refine grain structure and improve mechanical properties and weldability. As an aluminum hardener, scandium enables lighter, stronger alloys critical for aerospace, EVs and military applications. Given that, small adoption gains could significantly tighten supply-demand balances.
Solid oxide fuel cells (SOFCs) use scandia-stabilized zirconia to create highly conductive electrolytes that enable lower operating temperatures, boost efficiency, durability and reduce costs for cleaner energy. SOFCs are used primarily for stationary power generation and combined heat and power (CHP). New data centres are increasingly using solid oxide fuel cells for reliable, high-efficiency, low-carbon onsite power, driven by the massive energy demands of AI and cloud computing.
The takeaway is the demand will exist if the supply can be developed but automakers and aerospace OEMs require guaranteed long-term supply, stable pricing and standardized alloy specifications.
Risks
Investing (speculating) in junior mining companies always has a number of risks including metallurgy and recoveries, ESG and permitting, customer qualification and pricing as well as geopolitical risk. Scandium has all of these risks as well.
Conclusion
Scandium offers potentially asymmetric upside tied to advanced manufacturing trends, but remains high-risk as a result of supply constraints, opaque pricing and limited industrial adoption.
Brian Donovan, CBV, is the president of StockCalc, a Canadian fintech based in Miramichi, N.B.