The Pentagon announced a $400 million conditional loan for a scandium mine in Australia
The U.S. Department of Defense has announced a conditional commitment to provide a $400 million loan to the Australian company Sunrise Energy Metals for the construction of a scandium mine. The project is planned for Fifefield, in the state of New South Wales. The Pentagon stated that this is set to be the world’s first primary scandium mine.
The announcement came after U.S. President Donald Trump met with mining company executives in Washington. The Pentagon noted that the project is intended to secure the Western supply chain—from mining to finished products.
Sunrise Energy Metals reported that its Syerston Scandium Project is set to become one of the cornerstones of the Western scandium supply chain. The company’s website states that the metal is used in critical technologies, particularly in the aerospace sector and in 5G and 6G telecommunications.
Scandium is used in the defense industry, aircraft manufacturing, and data centers. It is typically obtained as a byproduct of other mining operations. The metal is valued for its ability to strengthen aluminum, as well as for its flexibility and resistance to high temperatures and corrosion.
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New South Wales is home to some of the world’s highest concentrations of scandium. China dominates the supply and processing of this element and last year restricted its export for defense products, after which the U.S. began searching for new suppliers, according to Al Jazeera English.
In October, Trump and Australian Prime Minister Anthony Albanese signed an agreement on critical minerals aimed at countering China. The parties pledged to invest $1 billion each in related projects. Last year, Sunrise also signed an agreement with Lockheed Martin to sell the defense and aerospace manufacturer 25% of the scandium mined during the first five years of the mine’s operation.
Trump also stated that the U.S. federal government will invest $3 billion in several projects involving critical minerals and batteries.
