Friedland’s scandium project wins $400million US defense backing

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KEY POINTS

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• Sunrise Energy Metals won a $400 million US Department of Defense loan commitment for the Syerston scandium project.
• Scandium demand is rising for fuel cells, semiconductors and defence, yet China makes all of the world’s scandium metal.
• The project could reach production around 2028, producing 60 tonnes a year, with the US holding first offer on output.

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Robert Friedland’s long-delayed plan to mine scandium in New South Wales has taken a major step forward, after the metal won $400 million in US backing. Sunrise Energy Metals, where the Ivanhoe Mines founder chairs the board, secured a $400 million conditional loan commitment from the US Department of Defense for its Syerston scandium project. Moreover, the company said it wants to list on a US securities exchange, and it aims to make a final investment decision by year-end.

Why scandium matters now

According to chief executive Sam Riggall, weak early demand once stalled the project, since buyers wanted scandium mainly for solid oxide fuel cells. However, the metal has since spread into semiconductors, 3D printing for defence parts and wireless technology, and Riggall said there is no 5G or 6G without it. Furthermore, fuel cells now sit at the centre of how the United States powers artificial intelligence and data centres, filling a gap left by limited gas generation. Still, supply remains a worry, because China produces all of the world’s scandium metal, which leaves buyers exposed and prices tight.

From nickel pivot to US supply hub

Sunrise first pushed the site’s nickel-cobalt resource toward development, then turned back to scandium after Indonesian supply flooded the nickel market. Consequently, the plan has grown: the company now pegs capital costs at A$450 million to A$475 million, nearly four times an earlier estimate, as it eyes a US processing plant and triple output. Therefore, the project could reach production around 2028 and yield 60 tonnes of scandium a year, in a market the US Geological Survey sizes at 40 to 70 tonnes, though Riggall said demand could hit 300 tonnes by 2030. In addition, the Defense Department financing gives Washington a right of first offer on output, and Friedland said Sunrise may even become an American company.