The Pentagon is making a significant investment to bolster the U.S. supply of scandium, a critical mineral used extensively in aerospace, defense, and automotive sectors. A $400 million loan has been granted to the Syerston scandium project in New South Wales, Australia, which is set to become the first primary source of mined scandium—a mineral currently dominated by supply from China, Russia, and Ukraine.
The U.S. has not mined scandium since 1969, and this project aims to produce 60 tonnes of scandium oxide annually starting in 2028. The investment is part of a broader strategy to secure a domestic supply chain for critical minerals, essential for military and economic resilience. Australian Resources Minister Madeleine King emphasized the project’s significance for strategic partnerships and job creation in both nations.
Overall, this initiative is viewed as a crucial step in reducing reliance on foreign sources and enhancing U.S. capabilities in key sectors.
