Shares of Australian rare earths miner Sunrise Energy Metals have surged as much as 29% today after the U.S. agreed to provide $400 million in long-term debt financing for a project that aims to develop the world’s first primary scandium mine.
The investment by the U.S. Department of War comes as Washington and other Western economies seek to reduce their dependence on China for critical minerals used in defense, aerospace, energy and advanced technology.
The Department of War said on Friday that its Office of Strategic Capital had announced a conditional loan commitment to Sunrise to support development of a full scandium supply chain, beginning with mining operations at the company’s Syerston Project in New South Wales.
Sunrise shares pared some gains and were last up about 16% on Monday.
Scandium is a strategic rare earth element used to strengthen aluminum while maintaining flexibility and resistance to heat and corrosion. It has applications in defense and aerospace and could also be used in power infrastructure supporting artificial intelligence data centers.
Sunrise Chairman and mining billionaire Robert Friedland described the funding as “a landmark moment” for the company and Australia’s mining industry.
“The world has entered an era in which access to critical minerals will shape industrial strength, technology leadership and national security,” Friedland said Monday in a statement filed with the Australian Securities Exchange.
“Scandium is one of the clearest examples, supporting the technologies, industries and defence capabilities that will shape the coming decades,” he added.
China dominates the global rare earths supply chain, accounting for nearly 70% of mining and about 90% of processing, according to industry estimates. Its dominance has become a growing strategic concern for Western governments as demand for critical minerals rises.
“Under the leadership of President Donald J. Trump, securing our critical minerals supply chain is a top national security priority,” said David A. Lorch, director of the Office of Strategic Capital and senior advisor to Deputy Secretary of War Steve Feinberg.
“The contemplated Sunrise transaction marks a significant step in establishing supply chain resiliency for an increasingly critical mineral. 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,” he added.
The announcement followed a meeting between U.S. President Donald Trump and mining executives last week.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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