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Sunrise Energy Metals (ASX:SRL) has this week signed a blockbuster agreement with American defence giant Lockheed Martin to “establish an Australian-U.S. scandium supply chain,” with the global company now holding an option to buy 25% of production from the Syerston Project over the next five years.
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Under the new deal, Lockheed Martin can acquire the first 15 tonnes of scandium oxide produced at the New South Wales project each year.
There are further options baked into the Sunrise-Lockheed agreement that would allow the U.S. defence and aerospace operator to collect up to 75 tonnes of scandium oxide over the term; 25% of the project’s annual output.
For its part, Sunrise will now prioritise Lockheed’s volume requirements, company boss Robert Friedland said, as they get to work on the “important” deal.
“We’re pleased to be working with Lockheed Martin on this important initiative, one which underscores the importance of the Australia-U.S. critical minerals pact that was signed by President Trump and Prime Minister Albanese at the White House only a few days ago,” Mr Friedland declared today.
“We expect cross-border industrial partnerships, especially in defence, will become increasingly important as global supply chains reorient.”
Sunrise’s managing director, Sam Rignall, added that it was “encouraging” to scoop up a vital partnership like this as the sector expands. “While global scandium trade is still small, latent demand is potentially enormous, provided customers have clear line of sight to supply options,” he explained.
“To this end,” Mr Rignall continued, “we continue to invest with end users in product development, including options for rapid and efficient expansion.”
The New South Wales mineral explorer will also “continue to work on its broader strategy to commercialise scandium from the Syerston project,” even after landing this bumper Lockheed Martin partnership.
Heading into Friday’s trade, SRL shares are $4.75/ea.
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