US-based critical minerals producer Energy Fuels Inc has entered into a scheme implementation deed (SID) to acquire 100 per cent of Australian Strategic Materials (ASM), positioning the combined group as a major rare earths player outside China.

Under the proposed transaction, ASM has been valued at US$299 million (A$444 million), with the acquisition to be completed via a scheme of arrangement under Australian law.

Energy Fuels said the deal would create what it believes will be the largest fully integrated rare earth element (REE) “mine-to-metal and alloy” producer outside China, helping address a critical gap in global supply chains for magnet materials used in automotive, robotics, energy and defence applications.

Once completed, the transaction will combine ASM’s operating Korean Metals Plant (KMP) and its planned American Metals Plant (AMP) with Energy Fuels’ existing REE oxide production at its White Mesa Mill in Utah.

Energy Fuels said White Mesa is currently the only facility in the US capable of separating monazite concentrates into both light and heavy REE oxides, which are intended to be supplied to ASM’s metallisation and alloying facilities in South Korea and the US.

ASM’s KMP is one of only a small number of facilities outside China producing REE metals and alloys, including neodymium-praseodymium (NdPr), dysprosium (Dy) and terbium (Tb) metals, as well as neodymium-iron-boron (NdFeB) and dysprosium-iron (DyFe) alloys.

Energy Fuels chief executive officer (CEO) Mark Chalmers said the acquisition was a key step in executing the company’s strategy to build a fully integrated REE supply chain outside China.

“The proposed acquisition of Australian Strategic Materials brings us much closer to our goal of becoming the largest fully integrated producer of rare earth oxides, metals and alloys outside China, while supporting US and allied critical minerals supply chains,” 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.”

Chalmers said ASM’s technical expertise and intellectual property would also support the expansion of REE metal and alloy capacity in the US, while providing Energy Fuels with access to ASM’s Dubbo Project in New South Wales.

“The Dubbo Project offers additional long-term rare earth development and growth opportunities that complement our existing mineral resource portfolio,” he said.

The ASM board has unanimously recommended that shareholders vote in favour of the proposed acquisition.

ASM said the transaction would provide shareholders with access to Energy Fuels’ established operating track record and a strategy aligned with the objectives of the US–Australia Critical Minerals Framework.

ASM managing director and chief executive officer Rowena Smith said the deal delivered a significant premium for ASM shareholders while allowing continued exposure to the upside of a larger, better-capitalised critical minerals business.

“This transaction accelerates the execution of our mine-to-metals strategy by unlocking greater scale, de-risking delivery and positioning the business to capture the full potential of our rare earths opportunity,” Smith said.

The transaction is subject to ASM shareholder approval, approval from the Federal Court of Australia, regulatory approval from the Foreign Investment Review Board, and approvals relating to the listing of Energy Fuels securities to be issued under the scheme.

ASM expects to hold its scheme meeting in late May or early June 2026, with implementation targeted for late June 2026, subject to the satisfaction or waiver of all conditions.

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