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 primary scandium mine, US President Donald Trump announced on August 8, 2026.

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

Currently, nearly all scandium supply is sourced from China, Russia, and Ukraine, and is primarily obtained as a by-product of other industrial or resource extraction processes. The Pentagon's Office of Strategic Capital (OSC) highlighted that no primary mine-source scandium supply exists globally at present, with foreign competitors accounting for about 80% of the world's mining production and nearly all scandium processing.

Sunrise Energy Metals stated its project intends to deliver "the world's first primary source of mine-able, high-grade scandium." In February 2026, the company's chief executive Sam Riggall noted 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).

The loan announcement was part of a broader US investment package totaling $3 billion USD (AUD 4.2 billion) 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 OSC emphasized the strategic importance of securing end-to-end supply chains in critical minerals and rare earths, noting that no single country can achieve this alone. The Syerston project is seen as a key component in enhancing Australia's capacity to supply the US and its partners with essential minerals.

Sources

ABC Australia News