Key facts
- The U.S. Pentagon has committed a $400 million conditional loan to Australian firm Sunrise Energy Metals.
- The funding aims to establish the world's first primary scandium mine in New South Wales, Australia.
- Scandium is a critical mineral used in defense, aerospace, and technology sectors.
- China currently dominates global scandium production and processing.
- The U.S. seeks to secure Western supply chains for scandium following Chinese export restrictions.
The United States is providing significant financial backing to an Australian company to develop the world's first primary scandium mine, aiming to reduce reliance on China for this critical mineral. The Pentagon has announced a $400 million conditional loan commitment to Sunrise Energy Metals for its Syerston project in New South Wales.
Scandium is a vital component in advanced materials used in defense, aerospace, and high-tech industries, including semiconductors and data centers. China currently dominates the global supply and processing of scandium, prompting the U.S. and its allies to seek alternative sources, especially after China imposed export restrictions on the mineral for defense products last year.
Sunrise Energy Metals, led by chairman Robert Friedland, aims to make its Syerston mine a cornerstone of Western scandium supply. The project, located near Fifield, is expected to have an initial capacity of 60 tonnes of scandium oxide per year, with production slated to begin in the first half of 2028. The company has already secured a deal with defense contractor Lockheed Martin to supply a portion of its output.
U.S. President Donald Trump announced the loan as part of a broader initiative to bolster critical mineral and battery projects, emphasizing a goal to reclaim global leadership in mineral production. Australian Resources Minister Madeleine King hailed the investment as a strong endorsement of Australia's capacity to supply critical minerals to its partners, noting that no single country can ensure end-to-end supply chains.
The Pentagon's Office of Strategic Capital highlighted that the project would support warfighting capabilities and strategically important economic sectors, aiming to create a U.S.-aligned scandium value chain and reduce dependence on adversaries.