Australia’s Sunrise expects to supply critical minerals for new US stockpile
Australia’s Sunrise Energy Metals sees its planned scandium production as a potential contributor to the United States’ new critical minerals stockpile, a development that illustrates how governments and producers are reshaping upstream supply chains for technology, defence and advanced manufacturing. Reuters reported that Sunrise’s chief executive made the comments on the sidelines of a global meeting in Washington.
Sunrise is developing the Syerston scandium project in New South Wales, supported by mining entrepreneur Robert Friedland. Scandium is an alloying element that, when blended with aluminium, can significantly strengthen the metal, a property valued in aerospace, defence and automotive applications. Reuters noted the project aims to produce about 60 metric tons of scandium oxide annually once operational, with first output targeted around 2028.
Sunrise CEO Sam Riggall told Reuters he expected the company’s output to be part of Washington’s planned stockpile, although concrete supply agreements have not been disclosed. He also cited support from the US Export-Import Bank, which has issued an early letter of interest valued at USD 67 million to help underpin financing for Syerston.
Yesterday Evertiq reported on the United States’ broader plans to establish a USD 12 billion strategic reserve of critical minerals, combining roughly USD 10 billion in financing from the US Export-Import Bank with about USD 2 billion in private capital. That initiative aims to reduce exposure to concentrated supply chains — particularly China’s dominant role in processing and refining — for minerals used across electronics, electric vehicles and defence systems.
In Reuters’ latest reporting, the stockpile initiative was linked to a roundtable hosted by US Secretary of State Marco Rubio, bringing together officials and industry representatives from more than 50 countries. Australia’s Resources Minister Madeleine King — also attending the meeting — said Canberra was positioning nearly 80 projects for international backing, underscoring Australia’s role as a key supplier of critical raw materials to allied economies.
The growing focus on strategic stockpiling reflects broader policy shifts. Governments in the United States and elsewhere increasingly view secure access to critical inputs as essential to economic and national security, particularly as geopolitical tensions have underscored vulnerabilities in global supply networks. For the electronics and automotive sectors in particular, reliable access to materials such as scandium, lithium, nickel and rare earth elements is becoming a strategic priority.
Sunrise’s comments also point to how upstream projects may increasingly be evaluated not just on traditional commodity markets but on their strategic value to allied industrial bases. The extent to which Washington’s stockpile plans will translate into formal supply contracts or offtake arrangements remains to be seen, but company executives and policymakers alike are framing the effort as part of a broader effort to diversify sources of critical materials outside China.
