U.S.-based critical minerals producer Energy Fuels Inc. has agreed to acquire Australian Strategic Materials Ltd. (ASM), creating what Energy Fuels believes will be the largest, fully integrated rare earths elements (REE) producer outside of China.
The deal values ASM at US$299 million (AU$447 million) and will be completed under a scheme of arrangement under Australian law.
Under the terms of the scheme, each eligible ASM shareholder will receive AU$1.60 per ASM share.
The ASM board has unanimously recommended that shareholders vote in favour of the proposed acquisition.
Energy Fuels said the merged entity will help close a critical strategic gap in global supply chains for magnet applications, including automotive, robotic, energy, and defence technologies.
“Energy Fuels is executing our plan to create the largest fully integrated producer of REE materials outside of China, including REE oxides, metals and alloys, while supporting U.S. and allied critical mineral supply chains.
“The proposed acquisition of Australian Strategic Materials brings us much closer to that goal,” Energy Fuels CEO Mark Chalmers said.
“We see a significant opportunity to expand our suite of rare earth products by combining US rare earth oxide production at our White Mesa processing facility with downstream metal and alloy manufacturing capacity at ASM’s Korean Metals Plant, one of the only producing REE metals and alloys facilities outside China.”
Once completed, the transaction will combine ASM’s operating Korean Metals Plant and its planned American Metals Plant with Energy Fuels’ existing REE oxide production at its White Mesa Mill in Utah, U.S.
The White Mesa Mill is the only U.S. facility capable of separating monazite concentrates into both light and heavy REE oxides that are planned to be utilised in ASM’s metallisation and alloying facilities in South Korea and the U.S.
“Energy Fuels is moving quickly to capture accretive opportunities, differentiate the company among our peers, and ultimately provide unique value to customers in the ex-China rare earth supply chain, which we think will translate into increased margins, cash flows, and market share for the company and our shareholders,” Chalmers said.
The transaction is subject to shareholder and regulatory approval. Energy Fuels expects the transaction to close late in the first half of 2026.
