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US Department of War offers $400M conditional loan to Sunrise Energy Metals for world's first primary scandium mine
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The US Department of War's Office of Strategic Capital announced a $400 million conditional loan to Sunrise Energy Metals to develop the Syerston scandium project in New South Wales, Australia. Backed by mining billionaire Robert Friedland, the project aims to become the world's first primary mine source of scandium, which is currently only produced as a byproduct and dominated by China. The loan includes a right of first offer on output for US defense companies. The article also notes controversy around Bloom Energy, the West's largest scandium consumer, which has been accused of sourcing Chinese scandium oxide via intermediaries. The Syerston project is designed to produce 60 tonnes annually, while global production was about 80 tonnes in 2025.
Source report
Staff Writer August 7, 2026 | 5:22 pm
The Department of War’s Office of Strategic Capital (OSC) announced Friday a $400 million conditional loan commitment to Sunrise Energy Metals (ASX: SRL) to develop the company’s scandium operations in New South Wales, Australia.
The company is backed by mining billionaire Robert Friedland, who stated that the Syerston project “will be the world’s first source of primary mine supply for scandium end-users.”
Key Facts
- Current supply chain: Scandium is harvested as a byproduct of other industrial or resource extraction processes. No primary mine-source scandium supply exists globally.
- Foreign dominance: Foreign competitors account for approximately 80% of global mining production and nearly 100% of scandium processing.
- Project scope: Sunrise will develop a full scandium value chain, beginning with primary mining at Syerston, and will build metallization and additive layer manufacturing capabilities to ensure Western alignment from mine to finished product.
- US access: The financing grants the Department a right of first offer on Sunrise’s output, with scandium production supporting demand from US companies, including defense industrial base firms.
Official Statement
“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.”
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— David A. Lorch, Director of the Office of Strategic Capital, in a news release
Supply Chain Controversy
Claims of a China-free scandium supply chain are also being tested in the private sector:
- Bloom Energy, based in San Jose, is the West’s largest consumer of scandium oxide, using an estimated 30 tonnes in 2025 — roughly half of global consumption, according to short-seller Hunterbrook Media.
- On July 8, Hunterbrook alleged that Chinese scandium oxide was still reaching Bloom through Thailand, Japan, and South Korea.
- In a July 9 filing, Bloom described the report’s financial claims as false and misleading and rejected its conclusions about the company’s scandium sourcing.
Production Outlook
- The USGS estimates global production totaled about 80 tonnes in 2025.
- Sunrise Energy Metals’ Syerston project is designed to produce 60 tonnes annually and is one of several proposed non-Chinese sources — but construction has yet to begin.
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Sunrise Energy Metals’ Scandium Project Gets $400M Conditional Loan from US Department of War
The company is backed by Robert Friedland, who said the Syerston project “will be the world’s first source of primary mine supply for scandium end-users”. August 7, 2026 | 5:22 pm
Source
MINING.COMWestern
Part of this Story
US loans $400M to Australian scandium project to challenge China's dominance