Energy Fuels buys Australian Strategic Materials in $300M rare earths deal

Energy Fuels buys Australian Strategic Materials to secure Western rare earths

Energy Fuels buys Australian Strategic Materials as the United States accelerates critical minerals security.
The $300.9 million transaction values ASM equity at A$447 million.
Notably, the offer reflects a 121% premium to ASM’s January 20 closing price.
As a result, ASM shares surged as high as 126% to A$1.63.

Meanwhile, Washington and Canberra push coordinated policies on rare earth elements.
Both governments signed a critical minerals framework agreement last year.
They pledged $1 billion each to support Western supply chains.
Consequently, investors expect more consolidation across the sector.

Deal structure and shareholder terms

The transaction offers ASM shareholders clear and immediate value.
Each ASM share converts into 0.053 Energy Fuels shares.
In addition, shareholders receive a special dividend up to A$0.13 per share.
Altogether, the deal implies A$1.60 per ASM share.

Importantly, ASM’s board unanimously supports the offer.
The board urges shareholders to approve the deal absent a superior proposal.
CEO Rowena Smith highlighted collaboration as essential for rapid supply chain development.

Energy Fuels buys Australian Strategic Materials to expand processing capacity

Energy Fuels buys Australian Strategic Materials to scale rare earth processing outside China.
The combined group will integrate ASM’s Korean metallization plant.
It will also advance a planned American metals plant.
Furthermore, Energy Fuels will expand rare earth oxide production at White Mesa Mill in Utah.

The portfolio includes several global development assets.
These include ASM’s Dubbo project in New South Wales.
They also include the Donald project in Victoria.
Additional assets span Madagascar’s Vara Mada and Brazil’s Bahia projects.

The strategy targets expanded oxide output at White Mesa.
Planned capacity reaches 6,000 tpa neodymium-praseodymium.
It also includes 240 tpa dysprosium and 66 tpa terbium oxides.
These materials support wind turbines, smartphones, and defense systems.

Rising rare earth prices reinforce the investment case.
Western nations continue reducing dependence on Chinese supply.
Australia considers price floors and new partnerships to support producers.
Lynas Rare Earths remains the largest producer outside China.
It produced 10,462 tonnes of rare earth oxides in fiscal 2025.

SuperMetalPrice Commentary:

This acquisition signals a decisive shift toward vertically integrated Western rare earth platforms.
Energy Fuels buys Australian Strategic Materials to control feedstock, processing, and downstream value.
As policy support strengthens, similar cross-border deals should accelerate.
Ultimately, secure pricing and processing scale will define winners in the rare earths market.