Sunrise Energy Metals received a $400 million investment from the United States, causing its shares to surge up to 29%.
The Trump administration is backing the construction of a scandium mine in Australia, aiming to challenge China's dominance in the critical minerals sector.
China controls nearly 70% of global rare earth mining and 90% of refining and processing capacity, highlighting the strategic value of this U.S. investment.
Shares of Australian rare earth company Sunrise Energy Metals surged up to 29% on Monday after the miner secured a $400 million long-term debt financing from the U.S. to develop the world's first primary scandium mine project.
As major economies strive to secure rare earth supplies and break China's long-held advantage in the mineral supply chain, the Trump administration has provided financial support to Sunrise Energy Metals.
The U.S. Department of Defense announced on Friday that its Office of Strategic Capital (OSC) has issued a conditional loan commitment to Sunrise Energy Metals to support the company in building a complete scandium supply chain, starting with the primary scandium mine project at Nyngan in New South Wales. The stock later trimmed its gains but still closed more than 16% higher.
Scandium is a rare earth element with extremely high strategic value, possessing unique physical and chemical properties. It is one of the most effective elements for strengthening aluminum alloys, providing toughness, high-temperature resistance, and corrosion resistance.
This silvery-white metal has a wide range of applications, primarily covering the defense and aerospace sectors, while also providing stable power supply for artificial intelligence data centers and other power-constrained infrastructure.
The chairman of Sunrise Energy Metals, mining tycoon Robert Friedland, stated that this financing is a milestone for the company and the Australian mining industry.
"We have entered a new phase where access to critical minerals will determine a nation's industrial strength, technological leadership, and national security," Friedland said in a statement to the Australian Securities Exchange on Monday. "Scandium is a prime example, supporting the technologies, industries, and defense forces that will shape the next few decades."
China holds an undisputed leading position in the critical minerals supply chain. Nearly 70% of the world's primary rare earth production comes from mining within China, and by processing imported ore, China handles nearly 90% of the world's rare earth refining capacity.
Western officials have repeatedly warned that China's advantage in the supply chain poses a strategic challenge. As the clean energy transition accelerates, global demand for critical minerals is expected to grow exponentially.
"Under President Donald Trump, securing critical mineral supply chains is a core national security priority," said David Lodge, Director of the Office of Strategic Capital and Senior Advisor to the Deputy Secretary of Defense.
"This proposed partnership with Sunrise Energy Metals is a key step in building resilient supply chains for increasingly important minerals. This nearly $1 billion public-private transaction will help reduce dependence on foreign scandium supplies and promote its use in core defense and commercial applications."
The announcement came a week after Trump held talks with executives from several mining companies.
Supply Risks
In late June, Sunrise Energy Metals CEO Sam Riggall told the program "Europe Early News" that while the scandium market is small, it carries significant strategic importance.
"Our project near Sydney, Australia, will become the world's largest source of scandium supply once completed. This single mine alone has the capacity to replace China's entire current scandium supply," Riggall said in a June 23 interview. "For this metal, we can quickly provide a mature solution and effectively mitigate related supply risks."