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 Friday, August 8, 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. This investment is expected to strengthen America's supply of scandium, a mineral increasingly critical for aerospace, defence, and automotive industries.

Scandium is widely used in defence, aerospace, and energy applications, but nearly all current supply is sourced from China, Russia, and Ukraine. The Pentagon's Office of Strategic Capital (OSC) noted that there is currently no primary mine-source scandium supply globally; instead, it is typically 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.

Sunrise Energy Metals aims to deliver "the world's first primary source of mine-able, high-grade scandium." In February 2026, the company's chief executive Sam Riggall said the project, backed by mining billionaire Robert Friedland, was expected 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 declared that the US is reclaiming its position as "the minerals superpower of the world."

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

Sources