This loan is another chapter in the US government’s search for secure critical mineral supply chains to reduce its dependency on Chinese supply. China still has leverageThe deal gives the US government first rights to purchase scandium from Sunrise Energy Metals, with production expected to start in late 2028. But China has the ability to remove those restrictions at any time, flooding the market with low-cost scandium and potentially squeezing Sunrise Energy Metals’ profits. Adding to this, the Pentagon’s multi-million-dollar loan to Sunrise Energy Metals is just that – a loan. The US and Australia should consider whether a price floor on scandium is necessary to protect this critical supply chain for the long term.