US announces $400m investment in Australian rare earth mine

Deal aims to secure Scandium supply as China restricts exports for defence products.The United States Department of Defense has announced a $400m conditional loan commitment to an Australian company to build the world’s first primary mine for Scandium, a critical Rare earth element whose market is dominated by China.After a meeting between US President Donald Trump and mining executives in Washington, the Pentagon said in a statement on Friday that the project would “ensure Western alignment from mine to finished product”.Recommended Stories list of 3 itemslist 1 of 3Will Pakistan-Saudi-Turkiye alliance actually create a new regional order?list 2 of 3Trump shifts blame to Republicans for waning support from publiclist 3 of 3What could the Mecca defence pact mean for the US role in the Middle East?end of listAustralian mining firm Sunrise Energy Metals said in a separate statement that the proposed mine in Fifield, New South Wales, would aim to become “a cornerstone of Western Scandium supply”.According to the company’s website, the “Scandium-project" class="entity-link entity-topic" data-entity-id="181025" data-entity-type="topic">Syerston Scandium Project” will provide a “critical metal for critical technologies”, including aerospace and 5G/6G telecommunications technology.Scandium — a rare earth needed for defence, planes and data centres — is usually sourced as a byproduct of other mining. It is valued for being one of the most effective elements to strengthen aluminium while also being flexible and resistant to heat and corrosion.New South Wales has some of the highest concentrations of Scandium globally. China, which dominates the supply and processing of Scandium, restricted its exports for defence products last year, triggering the US’s search for new suppliers.Trump and Australian Prime Minister Anthony Albanese signed a Critical minerals agreement aimed at countering China in October, pledging that each would invest $1bn in projects.