The agreement seeks to safeguard scandium supplies amid China’s export restrictions on defense‑related materials.
Published On 8 Aug 2026
The U.S. Department of Defense announced a conditional $400 million loan to an Australian firm to develop the globe’s first dedicated scandium mine, addressing China’s dominance in the rare earth market.
Following a meeting in Washington between President Donald Trump and mining industry leaders, the Pentagon stated on Friday that the initiative will “secure Western control from extraction to final product.”
Sunrise Energy Metals, the Australian mining company behind the project, said in a separate statement that the planned Fifield, New South Wales facility would serve as “a cornerstone of Western scandium supply.”
According to the company’s website, the Syerston Scandium Project will supply a “critical metal for critical technologies,” supporting sectors such as aerospace and next‑generation 5G/6G telecommunications.
Scandium, a rare earth essential for defense applications, aircraft, and data centers, is typically obtained as a byproduct of other mining operations. It is prized for its ability to significantly strengthen aluminum while remaining flexible and resistant to heat and corrosion.
New South Wales hosts some of the world’s richest scandium deposits. Because China controls the majority of global scandium supply and processing, its recent defense‑related export restrictions have prompted the United States to seek alternative sources.
In October, President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals pact designed to counter China’s influence, with each nation committing $1 billion to related projects.
Last year, Sunrise Energy Metals agreed to supply Lockheed Martin with 25 percent of its scandium production for the first five years of operation.
On Friday, President Trump announced that the U.S. federal government would allocate $3 billion to a range of critical minerals and battery initiatives, aiming to expand domestic output and strengthen national security and industrial policy.