Office of Strategic Capital Signs $400 Million Conditional Loan Commitment With Sunrise Energy Metals Limited to Expand Scandium Mining Operations
The U.S. Department of War’s Office of Strategic Capital committed a $400 million conditional loan to Sunrise Energy Metals to develop primary scandium mining and processing in Australia, aiming to reduce foreign supply dependencies for defense and commercial sectors.
The Department of War’s Office of Strategic Capital (OSC) announced a $400 million conditional loan to Sunrise Energy Metals Limited to expand the company’s scandium operations at its Syerston project in New South Wales. The funding will support the development of a full scandium value chain, including primary mining and metallization capabilities, aligning production with Western supply chains. The OSC stated this financing advances national security priorities by reducing reliance on foreign sources for a critical mineral used in defense and commercial applications.
Sunrise Energy Metals, an Australian company listed on the ASX, owns the Syerston Scandium Project, which contains a high-grade scandium deposit. Currently, scandium is primarily obtained as a byproduct of other mining processes, with foreign competitors controlling approximately 80% of global production and nearly 100% of processing. The OSC loan, combined with private capital, aims to establish a primary mine-source supply chain for scandium, ensuring Western alignment from extraction to finished product.
The conditional loan includes a right of first offer on Sunrise’s output, with the scandium produced intended to support U.S. defense industrial base companies and other critical sectors such as aerospace, semiconductors, and automotive manufacturing. The OSC emphasized that this initiative aligns with President Trump’s mandate to secure domestic supply chains for rare earths and other critical minerals. The Department of War highlighted the strategic importance of scandium in enhancing warfighting capabilities and economic security.
The OSC noted that the conditional loan commitment requires Sunrise to meet financial, legal, technical, and other customary conditions before financial close. As of FY 2026, the OSC has committed over $8.4 billion in debt financing and mobilized $17.8 billion in total capital from public and private sectors to support the American industrial base. The Department stated this effort is part of a broader strategy to strengthen supply chain resiliency for critical minerals.