Australian Strategic Materials reports a significant 75% jump in NdFeB alloy deliveries at its Korean Metals Plant and advances heavy rare earth production, while announcing a transformative acquisition offer from Energy Fuels Inc.
- 75% increase in NdFeB alloy delivery to 24.3 tonnes in Q4 2025
- Phase 2 expansion at Korean Metals Plant to boost alloy capacity to 3,600 tonnes per annum
- Pilot-scale heavy rare earth metallisation furnace installation expected Q1 2026
- Binding acquisition offer from Energy Fuels valued at A$1.60 per ASM share including special dividend
- Institutional placement raised A$55 million to fund expansion and strategic initiatives
Strong Operational Momentum at Korean Metals Plant
Australian Strategic Materials (ASM) has reported a robust 75% increase in the delivery of neodymium iron boron (NdFeB) alloy during the December 2025 quarter, dispatching approximately 24.3 tonnes from its Korean Metals Plant (KMP). This surge reflects growing demand from magnet manufacturers and original equipment manufacturers (OEMs), underscoring ASM’s rising profile as one of the few rare earth metals and alloys producers outside China.
ASM is actively prioritising NdFeB alloy production due to its favourable margin profile, which has led to a strategic shift in production capacity away from neodymium-praseodymium (NdPr) metal. The company produced 2.6 tonnes of NdPr metal during the quarter, maintaining flexibility to respond to evolving market demands.
Advancing Heavy Rare Earth Capabilities and Expansion Plans
Building on its landmark first commercial sales of heavy rare earth metals in Q3 2025, ASM is progressing the installation of a pilot-scale heavy rare earth metallisation furnace at KMP, expected in the first quarter of 2026. This capability, rare globally, positions ASM as a key Western supplier of critical magnet materials such as dysprosium and terbium.
Simultaneously, Phase 2 expansion activities at KMP are well underway, aiming to increase NdFeB alloy production capacity to approximately 3,600 tonnes per annum. Engineering and procurement are progressing on schedule, with civil works set to commence shortly. This expansion is funded by a recent A$55 million institutional placement, which also supports future downstream growth opportunities in Korea and the United States.
Dubbo Project Development and Strategic Partnerships
ASM continues to advance its flagship Dubbo Project in New South Wales, focusing on a Heap Leach Option Pre-Feasibility Study (PFS) targeted for completion in the first half of 2026. This pathway promises lower capital requirements and accelerated development timelines, enhancing the project’s competitiveness outside China.
The company is also exploring an alternative development route involving intermediate mixed rare earth hydroxide production, reflecting strategic flexibility to adapt to global rare earth market dynamics.
Transformational Acquisition Offer from Energy Fuels
Post quarter, ASM announced a binding Scheme Implementation Deed with Energy Fuels Inc., a leading US critical minerals producer. The proposed acquisition values ASM shares at an implied A$1.60 each, including a special dividend of up to A$0.13 per share. The ASM Board unanimously recommends the transaction, which aims to create a near-term Western supply chain for rare earth metals and alloys, combining complementary capabilities and aligning with government interests in Australia and the US.
The acquisition is subject to customary regulatory and shareholder approvals, with a Scheme Meeting expected in the second quarter of 2026. If successful, the deal would enhance ASM’s feedstock security through Energy Fuels’ White Mesa Mill, the only North American facility capable of processing monazite into separated rare earth oxides.
Financial Position and Market Outlook
ASM closed the quarter with a strong cash position of A$69.7 million, having fully repaid a A$9.2 million Korean Development Bank loan ahead of schedule. The company’s institutional placement attracted strong support from major shareholders and will underpin ongoing expansion and strategic initiatives.
Market conditions remain favourable, with electric vehicle sales reaching a record 20.7 million units globally in 2025, driving demand for rare earth materials. Concurrently, geopolitical tensions and Chinese export restrictions have heightened the urgency for secure, diversified supply chains, positioning ASM and its prospective partner Energy Fuels at the forefront of Western rare earth supply development.
Bottom Line?
ASM’s operational strides and strategic acquisition bid signal a pivotal moment for Western rare earth supply chains, but regulatory hurdles and integration challenges lie ahead.
Questions in the middle?
- How will regulatory approvals and shareholder votes shape the timeline and terms of the Energy Fuels acquisition?
- What impact will the KMP Phase 2 expansion have on ASM’s market share and profitability in the rare earths sector?
- How will ASM’s Dubbo Project development pathways evolve amid shifting global rare earth demand and supply dynamics?