Sunrise Energy Metals Secures $400M Loan For Scandium Project

The Department of War’s Office of Strategic Capital announced a conditional loan commitment worth $400 million on Friday to support Sunrise Energy Metals in developing its scandium operations within New South Wales, Australia. This financing is intended to assist the company in establishing primary mining capabilities for a mineral that currently relies heavily on byproducts from other industrial processes.

Sunrise Energy Metals stated it will utilise these funds alongside private capital to develop a complete value chain starting with its Syerston project. The plan includes building metallization and additive layer manufacturing facilities to ensure Western alignment throughout the supply process, extending from the mine site to finished products. Under the terms of this agreement, the Department retains a right of first offer on any output produced by Sunrise Energy Metals.

The scandium generated is expected to meet demand for US companies, including those within the defence industrial base. David A Lorch, Director of the Office of Strategic Capital, described the transaction as a significant step toward establishing supply chain resiliency for an increasingly critical mineral. He noted that combining public and private capital in this nearly $1 billion deal would help address foreign dependencies while facilitating scandium use in both commercial and defence applications.

Global production estimates from the USGS indicate approximately 80 tonnes were produced worldwide in 2025, with foreign competitors dominating roughly eighty percent of mining output. While claims regarding a China-free supply chain are being tested by private sector entities such as Bloom Energy, which is based in San Jose and uses an estimated thirty tonnes annually, disputes over sourcing continue to arise.

Sunrise Energy Metals remains backed by mining billionaire Robert Friedland who asserts the Syerston project will become the world’s first source of primary mine supply for scandium end-users. The Minneapolis-based company also aims to commercialise rare-earth-free Iron Nitride permanent magnets and has a subsidiary, UK Seabed Resources Limited, which recently departed Tahiti to survey its license area in the Pacific Clarion-Clipperton Zone.