The Pentagon is investing over half a billion dollars to expand an Australian critical mineral project 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 support Sunrise Energy Metals’ Syerston scandium project 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," a mineral increasingly critical for aerospace, defence, and automotive industries.

Currently, nearly all scandium supply is sourced as by-products from China, Russia, and Ukraine. The Pentagon's Office of Strategic Capital (OSC) noted there is no primary mine-source scandium supply globally at present, with foreign competitors accounting for about 80% 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, 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 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, Trump said the US is reclaiming its position as "the minerals superpower of the world."

The OSC emphasized that no single country can create secure, end-to-end supply chains for critical minerals and rare earths alone, highlighting the strategic importance of international partnerships in these sectors.

Sources