Shares of Australia’s Sunrise Energy Metals surged as much as 29% after the U.S. government committed $400 million in conditional long-term debt financing for the development of a major scandium mining project.
Shares of Sunrise Energy Metals jumped as much as 29% on Monday after the Australian rare earths company secured a $400 million conditional loan commitment from the U.S. government to develop what it describes as the world’s first primary scandium mine.
The U.S. Department of Defense said its Office of Strategic Capital had agreed to the conditional financing to support Sunrise’s plans to develop a full scandium supply chain, starting with mining operations at its Syerston Project in New South Wales.
The investment comes as the U.S. and other major economies seek to reduce their dependence on China for critical minerals used in defense, aerospace, energy and other strategic industries.
Scandium is a rare earth element valued for its ability to strengthen aluminum while maintaining flexibility and resistance to heat and corrosion. The metal is used in applications including defense and aerospace, as well as infrastructure where reliable power capacity is important, including artificial intelligence data centers.
Sunrise Chairman Robert Friedland described the U.S. financing as a “landmark moment” for the company and Australia’s mining industry. He said access to critical minerals is increasingly important to industrial strength, technology leadership and national security.
China currently dominates the global critical-minerals supply chain, producing nearly 70% of the world’s rare earths from domestic mines and processing almost 90% of global supply.
That dominance has prompted Western governments to seek alternative sources of critical minerals, particularly as demand is expected to increase with the expansion of clean-energy technologies and other strategic industries.
David A. Lorch, director of the U.S. Department of Defense’s Office of Strategic Capital, said securing critical-mineral supply chains is a national security priority under President Donald Trump. He said the contemplated Sunrise transaction, which combines public and private capital and is described by U.S. officials as nearly a $1 billion deal, could help reduce foreign dependence on scandium and expand its use in defense and commercial applications.
The financing announcement followed a meeting between Trump and mining executives the previous week, as the U.S. administration continues efforts to strengthen domestic and allied critical mineral supply chains.
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