Shares of Australia's Sunrise Energy Metals jumped as much as 29% on Monday after the rare earth miner secured a$400 million investmentin long-term debt financing from the U.S. to support the development of the world's first primary mine for scandium.
TheTrumpadministration's backing for Sunrise comes as major economies seek to shore up supplies of rare earths as part of a push to break China'slong-held mineral dominance.
The U.S. Department of WarsaidFriday that its Office of Strategic Capital (OSC) announced a conditional loan commitment to Sunrise to support the company's plans to develop a full scandium value chain, beginning with its primary mining operations at its Syerston Project in New South Wales.
Shares of the Sunrise surged on the news, before paring gains. The stock was last seen trading 16% higher on Monday.
Scandium is considered ahighly strategicrare earth element because of its unique properties. It is one of the most effective elements used to strengthen aluminum, while also being flexible and resistant to heat and corrosion.
The silvery-white metal is important for various applications, notably defense and aerospace, as well as providing reliable power for artificial intelligence data centers and other power-constrained infrastructure.
Sunrise Chairman and mining billionaire Robert Friedlanddescribedthe funding as "a landmark moment" for the company and Australia's mining industry.
"The world has entered an era in which access to critical minerals will shape industrial strength, technology leadership and national security," Friedland said Monday in a statement filed with the Australian Securities Exchange.
"Scandium is one of the clearest examples, supporting the technologies, industries and defence capabilities that will shape the coming decades," he added.
China is theundisputed leaderof the critical minerals supply chain. The countryproducesnearly 70% of the world's supply of rare earths from domestic mines andprocessesalmost 90% of the global supply as it refines imports from overseas sources.
Western officials have repeatedlyflaggedBeijing's supply chain dominance as a strategic challenge, with critical mineral demand expected togrow exponentially, particularly as theclean energy transition picks up pace.
"Under the leadership of President Donald J. Trump, securing our critical minerals supply chain is a top national security priority," said David A. Lorch, director of the OSC and senior advisor to Deputy Secretary of War, Steve Feinberg.
"The contemplated Sunrise transaction marks a significant step in establishing supply chain resiliency for an increasingly critical mineral. This nearly $1 billion deal, bringing together public and private capital, would help address foreign dependencies in scandium supply and facilitate scandium's use in critical defense and commercial applications," he added.
The statement came shortly after ameetingbetween Trump and mining executives last week.
