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| Syerston Scandium Project |
Syerston Scandium Project Gains US Backing
The US government is signaling its strategic intent to support scandium supply chain investment through a $67 million loan offer to Sunrise Energy Metals’ Syerston project in New South Wales, Australia. Sunrise, led by renowned mining financier Robert Friedland, holds one of the world's largest scandium resources. The Export-Import Bank of the United States (EXIM) issued a letter of interest indicating its support for the project, pending further due diligence.
This loan would cover nearly half the project’s development cost. The Syerston deposit, 450 km west of Sydney, contains 46 million tonnes of measured and indicated resources at 414 ppm scandium. That translates to 19,000 tonnes of scandium metal—double its previous estimate. EXIM sees the project as critical for building a secure US scandium supply chain, crucial to aerospace, automotive, and semiconductor applications.
Strategic Response to Chinese Export Controls
The US currently consumes 90% of the world's scandium but relies heavily on imports, primarily from China. However, recent export controls imposed by China in April 2025 have tightened global supply. This geopolitical risk has turned Syerston into a strategic alternative source, strengthening US-Australia resource cooperation. Sunrise CEO Sam Riggall emphasized the project’s role in mitigating future supply disruptions.
Meanwhile, Sunrise shares surged 30% on the Sydney ASX following the announcement, pushing the stock’s year-to-date gain to 1,800%. Its market capitalization now stands at A$513 million (US$343 million). The company expects to complete a full feasibility study by late October 2025, a milestone required before any final investment decision and off-take agreements.
Broader Implications for Critical Minerals Policy
The EXIM loan interest represents more than financial support—it signals Washington’s growing concern over critical mineral security. Friedland stated the letter from EXIM "underscores scandium’s importance" to US defense and civilian technologies. Australia's mineral endowment and geopolitical alignment make it an increasingly attractive partner in Washington’s resource diversification strategy.
In contrast to the fragmented global scandium market, Sunrise aims to anchor a stable supply for allied nations. Beyond scandium, the company also owns the Sunrise Nickel-Cobalt Project, hosting 170,000 tonnes of cobalt—making it the largest deposit outside the DRC. This dual resource profile could attract further strategic partnerships amid growing demand for battery metals and lightweight alloys.
ScrapInsight Commentary
The EXIM Bank's interest in Sunrise’s scandium project is a clear move to diversify critical mineral supply chains away from China. If approved, the loan could boost investor confidence and accelerate off-take negotiations. Strategically, this reflects a broader trend toward resource nationalism and allied sourcing—a shift likely to benefit Australian projects in the long term.
