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

The $400 million (AUD 560 million) loan will support Sunrise Energy Metals' Syerston scandium project located near Fifield in central west New South Wales, approximately 350 kilometres west north-west of Sydney. This investment is expected to strengthen America's supply of scandium, a mineral increasingly critical for aerospace, defense, and automotive industries.

Currently, nearly all scandium supply is sourced from China, Russia, and Ukraine. The Pentagon's Office of Strategic Capital (OSC) highlighted that there is no primary mine-source scandium supply globally, as it is typically harvested as a by-product of other industrial or resource extraction processes. 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." In February, the company's CEO Sam Riggall stated that the project, backed by mining billionaire Robert Friedland, is expected to contribute to a US critical minerals stockpile valued at $12 billion USD (AUD 16.9 billion).

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

The initiative underscores the importance of international cooperation, as no single country can create secure, end-to-end supply chains for critical minerals and rare earths. The project also highlights Australia's capacity to supply the US and its partners with essential minerals for strategically important economic sectors.

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