The Pentagon is investing over half a billion dollars to expand an Australian critical mineral project set 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, is intended to bolster America's supply of scandium — a mineral increasingly critical to aerospace, defense, and automotive industries.

Currently, nearly all scandium supply is sourced from China, Russia, and Ukraine, with no primary mine-source scandium supply globally. The Pentagon's Office of Strategic Capital (OSC) noted that scandium is typically obtained 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," according to the company. In February, 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 ($16.9 billion AUD).

The loan announcement was part of a broader $3 billion USD ($4.2 billion AUD) investment in critical minerals and battery projects. Speaking at a State Department event in Washington attended by over 200 mining executives, educators, and investors, Mr. Trump declared that the US is reclaiming its position as "the minerals superpower of the world."

The initiative underscores the importance of international cooperation, with officials acknowledging that "no one country alone can create secure, end-to-end supply chains in critical minerals and rare earths," emphasizing Australia's role in supplying the US and its partners with essential minerals for strategically important economic sectors.

Sources

ABC Australia News