An Australian miner led by billionaire Robert Friedland and backed by the US Department of War has given the go-ahead for a major rare earths project.

Sunrise Energy Metals Ltd. will develop the Syerston scandium mine and refinery in New South Wales with a goal to start production in 2028, it said in a statement Monday. The rare earth element is critical to defense, advanced manufacturing, artificial intelligence infrastructure and wireless spectrum technologies, and most supply currently comes from China.

“Since the imposition of Chinese critical minerals export controls in 2025, scandium supply to key western markets has all but ceased,” Sunrise said in the statement. “Supply risks associated with Chinese scandium supply reinforces the strategic importance of developing diversified sources of primary scandium production.”The US and other major economies are seeking to secure supplies of critical minerals, essential to a range of advanced technologies, as they try to reduce their reliance on China’s dominant position across global supply chains. Sunrise has secured as much as $400 million in long-term debt funding from the US Department of War.

The Syerston project hosts one of the world’s largest and highest-grade mineable scandium deposits, according to Melbourne-based Sunrise. The company plans initial production of 60 tons per year, an amount that could eventually triple.