The United States’ Department of War’s Office of Strategic Capital (OSC) has announced a US$400 million conditional loan commitment to Australia’s Sunrise Energy Metals to build the world’s first primary mine for the critical rare earth mineral scandium near the tiny town of Fifield, approximately 350km north-west of Sydney in New South Wales.
Scandium is primarily used as an alloying additive to strengthen aluminium, stabilise solid oxide fuel cells, and create metal-halide lights. Scandium oxide is used as a zirconia stabiliser to boost clean energy efficiency for buildings and data centres.
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With the OSC funds and private capital, Sunrise Energy Metals will develop a full scandium value chain, beginning with its primary mining operations at its Syerston Scandium Project. Additionally, Sunrise will build metallisation and additive layer manufacturing capabilities.
This financing will provide the US with a right of first offer on the production facility’s output, and the scandium produced will support the demand of US companies, including defense industrial base companies.
Sunrise Energy Metals chair Robert Friedland said, “This is a landmark moment for Sunrise and Australia’s mining industry, and the financing aligns with the goals of the US-Australia Partnership on critical minerals.
“The world has entered an era in which access to critical minerals will shape industrial strength, technology leadership and national security. Scandium is one of the clearest examples, supporting the technologies, industries and defence capabilities that will shape the coming decades.
“We thank President Donald J. Trump and the Department of War’s Office of Strategic Capital for its support as we aim to establish Syerston as a cornerstone of Western scandium supply,” Friedland said.
Office of Strategic Capital director David A. Lorch said, “Under the leadership of President Donald J. Trump, securing our critical minerals supply chain is a top national security priority. The contemplated Sunrise transaction marks a significant step in establishing supply chain resiliency for an increasingly critical mineral.
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“This nearly $1 billion deal, bringing together public and private capital, would help address foreign dependencies in scandium supply and facilitate scandium’s use in critical defense and commercial applications.”
