Sunrise Energy Metals, an ASX-listed company, announced it has secured a $400 million (approximately $560 million AUD) conditional loan commitment from the Pentagon's Office of Strategic Capital (OSC) for its Syerston scandium project in central west New South Wales. This investment aims to bolster America's supply of scandium, a critical mineral vital for aerospace, defense, and automotive sectors, where current supply is largely dominated by China, Russia, and Ukraine. The United States has not mined scandium since 1969.
The Syerston project, located near Fifield (about 350 kilometers west-north-west of Sydney), is designed to be the world's first primary source of mineable, high-grade scandium, with an initial capacity of 60 tonnes per year of scandium oxide, set to commence production in the first half of 2028. As part of the financing agreement, the US Department of War will receive a right of first offer on the mine's output. The company had previously signed a five-year deal with US defense contractor Lockheed Martin to supply up to 15 tonnes of scandium oxide from the project.
US President Donald Trump announced the loan alongside other critical minerals and battery projects totaling $3 billion, emphasizing the US goal to reclaim its position as a "minerals superpower." Resources Minister Madeleine King welcomed the decision, calling it a "significant vote of confidence" in Australia's capacity to supply critical minerals. This deal follows a critical minerals pact signed by Trump and Australian Prime Minister Anthony Albanese, aimed at countering China's influence in the sector, as foreign competitors account for about 80% of global mining production and nearly all scandium processing.
