US Government backs Australian scandium project
Sydney (10 August)
The United States Department of War (DoW) has agreed to loan Sunrise Energy Metals (SEM) up to $400 million (A$567 million) to support its now-developing Syerston scandium project in New South Wales (NSW).
SEM needs to meet financial, legal, and technical requirements before accessing the loan facility, the DoW said on 8 August. The company will use the loan facility to develop a scandium value chain, including a mine and manufacturing capabilities, the DoW added.
SEM plans to produce 60 tonnes per year of scandium oxide at Syerston from July-December 2028, before eventually increasing production to 180 tonnes per year of scandium oxide. Syerston will be the world’s only dedicated scandium mine when it opens.
Companies produce scandium as a metal processing by-product, according to the United States Geological Survey (USGS). The world’s scandium oxide capacity exceeded 90 tonnes per year in 2025, the USGS estimated in its 2026 scandium summary.
Scandium – which manufacturers use to strengthen alloys and produce fuel cells – traded at $640/kg in 2025, down from $660/kg – 670/kg in 2024 and $890/kg – $1000/kg in 2021, data from the USGS’ summary show.
DoW’s support for SEM comes just over one month after the NSW Government agreed to let the company defer mineral royalties linked to Syerston for five years upon launch. NSW’s royalty deferral scheme is meant to ease cash-flow challenges for project developers, the Government said on 4 July.
DoW’s support also comes alongside broader US Government support for Australian critical mineral developers. In October 2025, the US Export-Import Bank (EXIM) and Export Finance Australia jointly expressed interest in funding six critical mineral developers, including SEM. Both agencies issued non-binding letters of intent to the companies.
“By fostering collaboration between American and Australian industry, EXIM is helping deliver on the [Donald Trump’s] vision to secure the critical resources that power America’s economy and national security,” EXIM Chair John Jovanovic said at the time.
By Avinash Govind