Sunrise Energy Metals (ASX: SRL) said Thursday it is accelerating studies into a potential expansion of production capacity at its 100%-owned Syerston project in New South Wales.

The Australian scandium developer, backed by Robert Friedland, said Syerston “will be the world’s first source of primary mine supply for scandium end-users.”

In March, Sunrise completed a feasibility study for the project, confirming a capital cost of $120 million and average life-of-mine direct, site-level cash operating costs of $534 per kilogram of scandium oxide (Sc2O3).

At the time, the company said the operation could produce 60 tonnes of high-purity Sc2O3 annually over an estimated 32-year operating life. Sunrise said that level of output would position it to capture significant market share in a rapidly growing global market currently estimated at about 50-60 tonnes per year.

Scandium is classified as a critical mineral by the United States, Australia, the European Union, and other allied governments and is used in aerospace, defense and green energy technologies. Its primary commercial value lies in strengthening aluminum alloys — producing materials with weldability and heat resistance properties valued in aircraft manufacturing, 3D-printed components, and lightweight transportation applications. Scandium-stabilized zirconia is also used in solid oxide fuel cells, an emerging market that could further drive demand.

Global supply is concentrated almost entirely in China, where scandium is recovered from the processing of titanium dioxide pigment waste and nickel-cobalt waste residues. Sunrise said those waste sources typically contain very low grades of scandium and, in some cases, radioactive elements that require careful management.

High-concentration economic deposits are rare, and global supply remains constrained because scandium is largely produced as a minor byproduct from other mining operations, including Rio Tinto’s Sorel-Tracy facility in Québec.

In a Thursday announcement, Sunrise said it is advancing work on studies to assess an additional 120 tonnes per annum scandium oxide production train, which would increase Syerston’s total production capacity to 180 tonnes per annum.

“Our Syerston scandium deposit is large, high-grade and exceptionally well located,” Chairman Robert Friedland said in a news release.

“The expansion study will define the most capital-efficient pathway to lift production capacity to 180 tonnes per annum. These expansion plans are an insurance policy for western industry – one that delivers a new, reliable and scalable source of supply in a geopolitical landscape that is becoming increasingly contested,” Friedland said.

Friedland’s framing underscores a broader push by Western governments to de-risk critical mineral supply chains. The U.S. Inflation Reduction Act and Australia’s Critical Minerals Strategy have both prioritized development of non-Chinese sources for materials deemed essential to energy transition and national security, creating potential policy tailwinds for primary scandium projects like Syerston.

The expansion study uses engineering, process design and cost information generated through the ongoing Front-End Engineering and Design (FEED) study for the initial 60 tonnes per annum development.

Sunrise said the work is assessing the optimal route to higher production, including the relative capital efficiency, plant configuration, operating cost profile and execution requirements of a staged expansion.

Planned deliverables include a mine plan supporting production of up to 180 tonnes per annum, a Class 5 capital cost estimate, an operating cost assessment, site layouts and a high-level execution schedule.

The company said FEED for the initial 60 tonnes per annum development continues to advance, with commercial production targeted in 2028.