The Pentagon is investing more than 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 Saturday, August 8th, 2026.

The $400 million (AUD $560 million) 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 for aerospace, defense, and automotive industries. Currently, nearly all scandium supply is sourced from China, Russia, and Ukraine.

The Pentagon's Office of Strategic Capital (OSC) noted that no primary mine-source scandium supply exists globally at present; instead, scandium is typically harvested as a by-product of other industrial or resource extraction processes. Foreign competitors account for about 80% of the world's mining production and nearly all scandium processing.

Sunrise Energy Metals described the Syerston project as aiming to deliver "the world's first primary source of mine-able, high-grade scandium." In February 2026, the company's 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 (AUD $16.9 billion).

President Trump announced the loan alongside other investments in critical minerals and battery projects totaling $3 billion USD (AUD $4.2 billion). Speaking at a State Department event in Washington attended by over 200 mining executives, educators, and investors, Trump declared the US was reclaiming its position as "the minerals superpower of the world."

The initiative highlights the strategic importance of securing supply chains for critical minerals, with officials emphasizing that no single country can create secure, end-to-end supply chains alone. The project also underscores Australia's capacity to supply the US and its partners with essential minerals for strategically important economic sectors.

Sources