Pentagon invests $400 million in Australian scandium mine

The Pentagon is set to invest $400 million in an Australian mine to produce scandium, a strategic rare earth metal. The U.S. Department of Defense's commitment, provided as a loan to local company Sunrise Energy Metals, will fund the construction of the world's first primary mine dedicated to extracting scandium directly from its ore.

Scandium is crucial for industries like defense, aviation, and data centers. Currently, China holds a near-monopoly on the global production and refining of rare earths, including scandium, making Western nations heavily dependent on Chinese supply chains.

Sunrise Energy Metals aims to establish its Syerston project in Fifield, New South Wales, as a key source of scandium for the West. This initiative aligns with broader efforts by the U.S. and Australia to diversify mineral supplies, following China's imposition of export restrictions on rare earths for defense products in 2025.

In October, the U.S. and Australia pledged to invest $1 billion each in projects to reduce reliance on Chinese minerals. New South Wales is known to possess some of the most significant scandium concentrations globally, bolstering the strategic importance of this investment.

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We have for our objective to make Syerston a pillar of the West’s supply of scandium.