The Pentagon is investing more than half a billion dollars to expand an Australian critical mineral project poised to become the world's first scandium mine, US President Donald Trump announced on Saturday, August 8th, 2026.

The $400 million USD ($560 million AUD) loan to Sunrise Energy Metals' Syerston scandium project, located near Fifield in central west New South Wales about 350 kilometres northwest of Sydney, is intended to bolster the US supply of scandium — an increasingly critical mineral used in aerospace, defence, and automotive sectors.

Scandium is widely used in defence, aerospace, and energy applications, but nearly all global supply currently comes from China, Russia, and Ukraine. The Pentagon's Office of Strategic Capital (OSC) noted that there is presently no primary mine-source scandium supply worldwide; instead, it is harvested as a by-product of other industrial or resource extraction processes.

The OSC also stated that foreign competitors account for about 80 percent of the world's mining production and nearly all scandium processing. Sunrise Energy Metals aims to deliver "the world's first primary source of mine-able, high-grade scandium" through the Syerston project.

In February 2026, Sunrise Energy Metals' chief executive Sam Riggall said the project, backed by mining billionaire Robert Friedland, was expected to contribute to a US critical minerals stockpile valued at $12 billion USD ($16.9 billion AUD).

President Trump announced the loan alongside other investments in critical minerals and battery projects totaling $3 billion USD ($4.2 billion AUD). Speaking at a State Department event in Washington attended by over 200 mining executives, educators, and investors, Trump said the US was reclaiming its place as "the minerals superpower of the world."

The initiative underscores the strategic importance of securing supply chains for critical minerals. The Pentagon emphasized that no single country can create secure, end-to-end supply chains in critical minerals and rare earths alone, highlighting the role of Australia in supplying the US and its partners with these essential resources.

Sources

ABC Australia News