Friedland’s forgotten metal wins $400M US backing

After more than two decades, billionaire Robert Friedland's plans for a scandium mine in New South Wales are finally moving forward. Sunrise Energy Metals, where Friedland serves as non-executive chairman, secured a $400 million conditional loan commitment from the US Department of Defense for the Syerston scandium project. The project targets one of the largest and highest-grade mineable scandium deposits in a Western jurisdiction. Sunrise plans to list on a US securities exchange and has already initiated early works.

Initial interest in nickel at the site, followed by a decrease in demand for scandium beyond solid oxide fuel cells, delayed the project. However, scandium has now found applications in semiconductors, 3D printing for defense components, and fuel cells, which are increasingly important for AI and data centers. CEO Sam Riggall highlighted that scandium is now crucial for deploying AI and data centers effectively, particularly in the US where gas generation capacity is limited.

Nickel initially drove the project's development, but Sunrise shifted focus to scandium after Indonesian supply flooded the nickel market. Recent estimates now suggest capital expenditures of A$450-475 million ($315-333 million), nearly four times the previous feasibility study's $120 million estimate. The project could commence production in 2028, producing 60 tonnes of scandium annually, with potential demand reaching 300 tonnes by 2030.

Scandium is vital for defense, advanced manufacturing, artificial intelligence infrastructure, and wireless technologies. The US has not actively mined scandium in decades, leaving the market heavily reliant on China. The Syerston project, if fully developed, would supply scandium to the US market, reducing dependence on Chinese sources. The Department of Defense financing provides the project with a right of first offer on its output, supporting demand from US companies.

Friedland believes the project could make Sunrise Energy Metals an American company, aligning with US government preferences for domestic ownership of critical minerals. However, scandium supply remains vulnerable to Chinese influence, as highlighted by activist investor Hunterbrook Capital. The US government recognizes the urgency in addressing this issue, particularly in the defense sector, where scandium is already a supply concern.