The United States Department of Defense committed $400 million in conditional financing to an Australian mining firm to construct what would be the world’s first dedicated primary mine for scandium, a critical rare earth element. The announcement followed discussions between US President Donald Trump and mining executives in Washington, with Pentagon officials stating the initiative would strengthen Western supply chains from extraction through manufacturing.
Sunrise Energy Metals, the Australian company behind the proposal, plans to develop the Syerston Scandium Project in Fifeld, New South Wales. The company aims to establish itself as a major source of scandium for the Western world. Scandium is valued in multiple industries for its capacity to strengthen aluminum while providing heat and corrosion resistance, making it essential for aerospace applications and advanced telecommunications infrastructure including 5G and 6G systems.
China currently dominates global scandium supply and processing, having restricted exports of the material for defense applications in recent years. This restriction prompted the United States to pursue alternative sources. New South Wales contains some of the highest concentrations of scandium deposits worldwide, positioning Australia as a logical location for expanded Western production capacity.
Sunrise Energy Metals has already secured a significant offtake agreement with defense contractor Lockheed Martin, which will purchase 25 percent of the mine’s scandium production during the initial five years of operation. In October, Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement committing both nations to invest $1 billion each in related projects. On Friday, Trump announced that the federal government would invest $3 billion across multiple critical minerals and battery initiatives as part of a broader effort to strengthen domestic production capacity and advance national security and industrial competitiveness.
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