GoKawiilShares of Australia's Sunrise Energy Metals jumped as much as 29% on Monday after the rare earth miner secured a $400 million investment in long-term debt financing from the U.S. to support the development of the world's first primary mine for scandium.
The Trump administration's backing for Sunrise comes as major economies seek to shore up supplies of rare earths as part of a push to break China's long-held mineral dominance.
The U.S. Department of Defense said Friday that its Office of Strategic Capital, or 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.
Sunshine shares later pared gains, closing more than 16% higher.
Scandium is considered a highly strategic rare 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.