Lockheed Martin Corporation (NYSE:LMT) has signed an agreement with Sunrise Energy Metals Limited (ASX:SRL, OTC:SREMF) to secure up to 25% of scandium oxide production from the Syerston Scandium Project in New South Wales, marking a key step in establishing an Australia-U.S. scandium supply chain for advanced manufacturing and defense applications.

The deal grants Lockheed an option to purchase 15 tonnes of scandium oxide annually—about 25% of the Syerston Project’s expected output—during its first five years of operation. The companies will collaborate on testing and qualification programs to accelerate scandium integration into Lockheed Martin’s product platforms.

The partnership follows the recently signed U.S.–Australia Critical Minerals Pact, underscoring growing efforts to secure Western supply chains for strategic materials used in aerospace, defense, and clean energy technologies. Scandium, valued for its ability to strengthen aluminum alloys while reducing weight, is increasingly sought after for applications in aircraft, spacecraft, and next-generation energy systems.

Sunrise Energy Metals, co-chaired by mining financier Robert Friedland, is developing what it describes as the world’s first high-grade, scalable scandium source at its Syerston project. In addition to scandium, Sunrise holds one of the largest nickel-cobalt laterite deposits globally—resources critical for EV batteries and energy storage systems.

Lockheed Martin, the world’s largest defense contractor, is positioning to secure stable supplies of key inputs as geopolitical competition and industrial policy reshape global sourcing strategies. By aligning with an Australian partner, the company also supports allied diversification away from Chinese and Russian mineral dominance.

Both firms said the agreement could expand to include future offtake and production increases as demand for scandium grows. Friedland called the collaboration “an important initiative” that reflects “a new geopolitical reality” of closer industrial ties between allied nations.

By Charles Kennedy for Oilprice.com

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