Fifield, Australia - Due to a massive investment from the Pentagon, a remote Australian town will become the "cornerstone" of the US' supply of scandium, a rare earth used for defense systems, planes, and data centers.
The Pentagon on Saturday announced it will provide a conditional $400 million loan commitment to Sunrise Energy Metals for the building of the world's first primary mine for scandium.
Trump secured the deal during a meeting with mining executives in Washington. It is significant because China dominates global supply of scandium, which is usually sourced as a byproduct of other mining.
"We aim to establish Syerston as a cornerstone of Western scandium supply," Sunrise chairman Robert Friedland said in a statement, referring to the proposed mine in Fifield, New South Wales (NSW).
"This is a landmark moment for Sunrise and Australia's mining industry, and the financing aligns with the goals of the US–Australia Partnership on critical minerals."
NSW has some of the highest concentrations of scandium globally, the state government said.
China restricted exports of scandium for defense products last year, triggering a desperate search by the US to secure reliable new suppliers.
The Pentagon statement said the scandium project will "ensure Western alignment from mine to finished product."
Trump and Australian Prime Minister Anthony Albanese signed a critical minerals agreement aimed at countering China in October, pledging that each would invest $1 billion in projects.
Sunrise struck a deal with Lockheed Martin last year to sell the defense and aerospace manufacturer 25% of its scandium output for the first five years of the mine.
"Secretary Hegseth and Deputy Secretary Feinberg are mobilizing… resources to secure our critical mineral supply chain," said Emil Michael, Under Secretary for Research and Engineering.
"Congress provided the necessary resources, and [the Office of Strategic Capital] is aggressively executing that mandate to deliver for the American warfighter."