US backs Australian rare earth miner with $400M to reduce reliance on China

The US Department of Defense just put $400 million behind an Australian mining company to build something that doesn’t yet exist anywhere on Earth: a dedicated scandium mine. The conditional loan commitment to Sunrise Energy Metals for the Syerston Scandium Project in New South Wales is the latest, and arguably most concrete, move in a Western campaign to pry critical mineral supply chains out of China’s grip. The announcement, made through the Pentagon’s Office of Strategic Capital, positions Australia as the anchor of a new non-Chinese supply line for a metal most people have never heard of but that underpins everything from fighter jets to data centers. Why scandium matters more than you think Scandium is one of those elements that punches well above its weight class. Add a tiny amount to aluminum alloy and you get a material that’s lighter, stronger, and more heat-resistant. That makes it extremely useful for aerospace components, defense systems, and the kind of high-performance infrastructure that powers AI data centers. The problem is where it comes from. China controls roughly 70% of global rare earth mining and more than 90% of processing capacity. Recent Chinese export cu...