The U.S. Department of Defense has offered a $400 million conditional loan commitment to Sunrise Energy Metals to help develop a scandium mine in Fifield, New South Wales, in what would be the world’s first primary mine for the metal. The Pentagon said the project would help "ensure Western alignment from mine to finished product" after a Washington meeting between US President Donald Trump and mining executives. Sunrise said the Syerston Scandium Project is intended to become "a cornerstone of Western scandium supply." Scandium is a rare earth element used in defense, aircraft and data centers, and is also important for aerospace and 5G/6G telecommunications technology. It is typically produced as a byproduct of other mining, and is prized for strengthening aluminum while remaining flexible and resistant to heat and corrosion. The announcement comes as the United States seeks alternative supply after China, which dominates scandium supply and processing, restricted exports for defense products last year. Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement in October pledging $1 billion each for projects aimed at countering China, and Sunrise separately agreed last year to sell Lockheed Martin 25% of its scandium output for the mine’s first five years. Trump also said on Friday that the U.S. federal government would invest $3 billion across multiple critical minerals and battery projects to bolster domestic production, national security and industrial policy.