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 8, 2026.

The $400 million USD ($560 million AUD) loan will support Sunrise Energy Metals' Syerston scandium project located near Fifield in central west New South Wales, approximately 350 kilometers 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 widely in aerospace, defense, and automotive industries. Currently, nearly all scandium supply is sourced from China, Russia, and Ukraine, with no primary mine-source supply globally. The Pentagon's Office of Strategic Capital (OSC) noted that scandium is mostly 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.

In February, Sunrise Energy Metals CEO 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 totaling $3 billion USD ($4.2 billion AUD) in critical minerals and battery projects. 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 importance of secure, end-to-end supply chains in critical minerals and rare earths, with the recognition that no single country can achieve this alone. 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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