Pentagon Targets China Monopoly With Rare Earth Deal

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Washington DC: The Pentagon has announced a $400 million conditional loan commitment to fund the world's first primary scandium mine in remote Australia.

The Syerston project, developed by Sunrise Energy Metals in New South Wales, aims to establish a crucial cornerstone for Western supply of the critical rare earth metal.

Scandium is essential for defense manufacturing, aerospace, and data centers, but global supply and processing have long been dominated by China.

After Beijing restricted scandium exports for defense products last year, Washington moved swiftly to secure alternative sources alongside key defense contractors like Lockheed Martin.

The investment stems from a broader bilateral critical minerals initiative between President Donald Trump and Australian Prime Minister Anthony Albanese to build resilient supply chains.