The US Department of Defense announced on October 24 a conditional loan commitment of $400 million to Australian mining company Sunrise Energy Metals to build the world's first primary scandium mine. Scandium is a critical rare earth element currently dominated by China's market.
The announcement followed a meeting between US President Donald Trump and mining executives in Washington. The Pentagon stressed the project would “secure a Western link from mine to finished product.”
According to Sunrise Energy Metals, the proposed mine is located at Fifield, New South Wales, aiming to become the “foundation of Western scandium supply.” The project, named the “Syerston Scandium Project,” will provide “critical metals for critical technologies,” including aerospace and 5G/6G telecommunications.
Scandium is a rare earth element essential for defense, aircraft, and data centers. The metal is often recovered as a byproduct of other mining operations and is valued for its ability to strengthen aluminum while remaining lightweight, heat-resistant, and corrosion-resistant.
New South Wales hosts some of the world's highest concentrations of scandium. China, which dominates scandium supply and processing, has restricted exports of the metal for defense products since last year, prompting the US to seek alternative suppliers.
In October, President Trump and Australian Prime Minister Anthony Albanese signed a critical minerals deal to counter China, pledging $1 billion each into related projects. Earlier, Sunrise had reached an agreement with Lockheed Martin to sell 25% of its scandium output to the defense and aerospace manufacturer during the mine's first five years of operation.
On the same day, President Trump said the US federal government would invest $3 billion in various critical minerals and battery projects, as part of efforts to boost domestic manufacturing, enhance national security, and industrial policy.
