The U.S. Department of Defense’s agency provided a conditional loan of $400 million to Australia's Sunrise Energy company for the development of a large scandium mine in New South Wales.
The British 'Financial Times' reported on August 10 that the US's move is aimed at creating non-Chinese supply lines for the US defense and industry, in order to reduce its reliance on Chinese rare earths. Stimulated by this news, the company's stock price surged by 18%.
According to reports, the U.S. Department of Defense’s Strategic Capital Office announced on Monday that it has provided a conditional loan worth $400 million to Australian rare earth developer Sunrise Energy. The loan requires Sunrise to meet certain legal and technical requirements, and the U.S. also grants priority purchasing rights for the company’s future production.
The US side emphasized in its statement that ensuring the supply of non-Chinese rare earths and other key minerals is strategically important for the supply chain security of US defense and industrial enterprises. This is one of the most substantial measures taken so far in the increasingly close cooperation between the US and Australia in the mining industry.
Sunrise Energy is currently building the Syerston Scandium project in Parkes Town, about 360 kilometers west of Sydney. The project is expected to begin production in the second half of 2028. The company’s shares were up by 18% on Monday after listing on the Sydney Stock Exchange, and its market value has risen to AUD 3.2 billion (approximately US$2.2 billion) over the past year.
Scandium is one of the 17 rare metals. Although it is used in small quantities, its applications are crucial. It is mainly used as a strengthening agent for aluminum alloys in aerospace and automotive components. It is also a key material in the chips used to select radio frequency signals in smartphones. Additionally, it has unique applications in fields such as hydrogen fuel cells, oil refining tracers, and ultra-thin semiconductor coatings.
Sunrise Co-Chairman and largest investor, mining tycoon Robert Friedland, said that this loan is a "milestone moment" for Australian mining industry, and expressed gratitude to the Trump administration and the US Department of Defense for their support.
He said: "The world has entered an era where critical minerals determine industrial strength, technological leadership, and national security. Scandium is the most vivid example of this."
Sunrise Co-Chairman Robert Friedland described this as a milestone moment.
The town of Pax, where the project is located, is known for its King Cat Music Festival and the large radio telescope that broadcast the moon landing in 1969. International mining giant Rio Tinto has a titanium mine project in the nearby area, which is currently undergoing strategic evaluation.
Additionally, Sunrise has announced plans to go public again on the U.S. stock exchange. The related plans still require approval from shareholders, the court, and regulatory authorities.
