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

The $US400 million ($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. The project aims to deliver "the world's first primary source of mine-able, high-grade scandium," according to Sunrise Energy Metals.

Scandium is an increasingly critical mineral used extensively in aerospace, defence, and automotive sectors. Currently, nearly all scandium supply is sourced from China, Russia, and Ukraine. The Pentagon's Office of Strategic Capital (OSC) noted that there is no primary mine-source scandium supply globally at present; instead, scandium is harvested as a by-product of other industrial or resource extraction processes.

The OSC highlighted that "foreign competitors" account for about 80 percent of the world's mining production and nearly all scandium processing. The Syerston project's production is expected to enhance America's supply of this vital mineral.

In February, Sunrise Energy Metals' chief executive Sam Riggall said the project, backed by mining billionaire Robert Friedland, was anticipated to contribute to a US critical minerals stockpile valued at $US12 billion ($16.9 billion).

President Trump announced the loan alongside other investments in critical minerals and battery projects totaling $US3 billion ($4.2 billion). Speaking at a State Department event in Washington attended by over 200 mining executives, educators, and investors, Trump stated that the US is reclaiming its position as "the minerals superpower of the world."

The initiative underscores the importance of secure, end-to-end supply chains in critical minerals and rare earths, with recognition that no single country can achieve this alone. It also reflects confidence in Australia's capacity to supply the US and its partners with essential minerals for strategically important economic sectors.

Sources

ABC Australia News