Sunrise Energy Metals jumps 29% on $400M U.S. scandium loan

The U.S. backing comes as Western governments push to break China's dominance of the rare earth supply chain. China produces nearly 70% of the world's rare earths from domestic mines and processes almost 90% of global supply, according to industry data.

David A. Lorch, director of the OSC and senior advisor to Deputy Secretary of War Steve Feinberg, said the transaction "marks a significant step in establishing supply chain resiliency for an increasingly critical mineral." He noted the deal, valued at nearly $1 billion including private capital, "would help address foreign dependencies in scandium supply and facilitate scandium's use in critical defense and commercial applications."

The announcement followed a meeting between President Trump and mining executives last week.

Sunrise said the conditional commitment requires the company to meet technical, environmental and financial milestones before funds are disbursed. The company is developing the Syerston Project as the world's first primary scandium mine, with production targeted for the late 2020s.

The loan is part of a broader U.S. strategy to secure critical minerals. The OSC, established in 2022, provides financing for projects deemed vital to national security. Sunrise's shares have gained about 60% since the start of the year on optimism over the deal and rising scandium demand.

The company said it expects to finalize the loan agreement in the coming months, with first production from Syerston scheduled for 2028.