US Defense Department to Invest $400 Million in Australian Scandium Mine

The US Department of Defense announced a $400 million conditional loan commitment on Friday, August 7, 2026, to build the world's first primary scandium mine in Australia, a critical rare earth element whose market is dominated by China, Al Jazeera reported. The announcement followed a meeting between US President Donald Trump and mining executives in Washington. Australian miner Sunrise Energy Metals said the proposed project in Fifield, New South Wales, aims to become a cornerstone of Western scandium supply. Scandium, used in defense, aerospace and 5G/6G technology, is typically sourced as a byproduct of other mining, and China, which dominates its supply and processing, restricted exports for defense products last year. Trump also said the US federal government would invest $3 billion in multiple critical minerals and battery projects.