Energy Fuels to Acquire ASM, Expanding Rare Earth Supply Chain Beyond China
Authored by: Carrie Smith
U.S. uranium and rare earth producer Energy Fuels Inc. has agreed to acquire Australian Strategic Materials Ltd. in a deal valued at about US$299 million, marking a major step toward building a Western-controlled rare earth supply chain.
Now, the Australian firm’s equity will value at A$447 million ($300.9 million), the two parties said in separate statements on Wednesday. The acquisition, announced Monday, gives Energy Fuels ownership of ASM’s operating Korean Metals Plant (KMP) and its planned American Metals Plant (AMP), which will be combined with the company’s White Mesa Mill in Utah.
Under the deal, shareholders of ASM would receive 0.053 Energy Fuels shares for each ASM share held, along with a special dividend of up to A$0.13 per ASM share, representing a total implied value of A$1.60 per ASM share.
The transaction, structured under an Australian scheme of arrangement, is expected to close in the first half of 2026 pending shareholder and regulatory approvals.
The deal, which represents a 121 percent premium on ASM’s close from January 20, sent shares of the Australian producer soaring as much as 126 percent to A$1.63.
The buyout is significant for the U.S., which is looking to lock in Western supply for the metals used in applications such as wind farms, mobile phones and missiles. Australia and the U.S. signed a framework agreement for cooperation around critical minerals including rare earths last year, each pledging to invest $1 billion.
Energy Fuels said the acquisition will create what it calls the largest integrated “mine-to-metal” rare earths producer outside China, closing a long-standing gap in downstream refining and alloy manufacturing for magnet materials. Currently, China dominates over 80 percent of global rare earth processing.
“We are executing our plan to create the largest fully integrated producer of REE materials outside of China,” said Energy Fuels’ chief executive Mark Chalmers in the announcement. “Combining U.S. rare earth oxide production at White Mesa with downstream metal and alloy manufacturing at ASM’s facilities strengthens supply security and enhances market reach.”
The acquisition also expands Energy Fuels’ project portfolio to include ASM’s Dubbo rare earth project in New South Wales, alongside Energy Fuels’ Donald project in Victoria, Vara Mada project in Madagascar, and Bahia project in Brazil.
These assets are expected to supply feedstock for the planned expansion of the White Mesa Mill, which aims to produce 6,000 tonnes per year of NdPr oxide, 240 tpa of dysprosium, and 66 tpa of terbium. White Mesa Mill is currently the only U.S. facility capable of separating both light and heavy rare earth oxides. ASM’s KMP currently produces metals and alloys such as neodymium-praseodymium (NdPr), dysprosium (Dy), and terbium (Tb) which are essential for permanent magnets.
Prices of rare earths have been rising as Western countries scramble to reduce dependence on China. In response, Australia has been considering setting a price floor and new international partnerships to support rare earths projects and build alternative supplies.
Australia’s Lynas Rare Earths is the world’s largest rare earths producer outside China. It produced 10,462 tons of rare earth oxides in the 2025 financial year.
Analysts say the Energy Fuels-ASM combination demonstrates a wave of consolidation aimed at securing critical materials as geopolitical competition over clean energy and defense inputs intensifies.
