(Reuters) -Australia's Sunrise Energy Metals said on Friday it has granted U.S. defence contractor Lockheed Martin an option to purchase up to 15 tonnes of scandium oxide produced over five years from
its onshore Syerston Scandium Project.
Shares of Sunrise were up as much as 15.6% to A$5.49 by 2333 GMT, set for their strongest trading session since early October.
Under the agreement, the Australian diversified miner said the option to purchase will be subject to the conclusion of binding offtake agreements between the two parties, with full exercise of the option representing about 25% of the project's annual production capacity.
Earlier, rare earths miner NioCorp said it is working with Lockheed to develop a scandium and aluminum alloy for use in military equipment as part of a Pentagon‑funded program.
Scandium is already used widely for defence, aerospace and energy applications, but nearly all supply comes from China, Russia and Ukraine. The U.S. has not mined scandium since 1969.
"We are pleased to be working with Lockheed Martin on this important initiative, one which underscores the importance of the U.S.-Australia critical minerals pact, signed by President Trump and Prime Minister Albanese at the White House only a few days ago," said Robert Friedland, co-chair of Sunrise Energy Metals.
Testing and qualification work will seek to accelerate adoption of scandium-containing components in Lockheed Martin product platforms, Sunrise added in its statement.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
