The US Department of Defense has announced a $400 million conditional loan commitment to an Australian company to develop the world’s first primary mine for scandium.

The rare earth element is critical for defence and high-tech applications, and its market is currently dominated by China.

The funding will support Sunrise Energy Metals’ Syerston Scandium Project in New South Wales. Officials said the project aims to create a complete, US-aligned supply chain from mining to finished metal products.

Scandium is used in fighter jets, spacecraft, and other advanced technologies. Until now, it has mainly been produced as a byproduct of other processes, with no primary mine existing anywhere in the world.

The loan forms part of broader efforts by the United States to diversify its critical minerals supply and reduce dependence on foreign sources. The company has previously secured agreements with major defence contractors for a portion of its future output.

US officials described the investment as an important step toward securing reliable access to the mineral for both defence and commercial industries.

The project is expected to strengthen Western supply chains for this strategic resource.

Photo credit: Aljazeera