A US$299M Bet on Breaking China’s Rare Earth Grip

Energy Fuels’ US$299M bid for ASM boosts non-China rare earth processing via Korea and planned U.S. metals plants

26 Jan 2026

Energy Fuels has agreed to buy Australian Strategic Materials in a deal valued at about $299mn, a move aimed at strengthening rare earth processing capacity outside China as governments and manufacturers seek more secure supply chains.

The transaction, which remains subject to Australian court, shareholder and foreign investment approvals, would give the US-based company greater control over downstream stages of rare earth production. The deal is among the most closely watched Australia-linked critical minerals transactions in recent months.

Rare earth elements are mined in many countries, but most global refining and processing capacity is concentrated in China. That dominance has left producers of electric vehicles, clean energy equipment and advanced manufacturing components exposed to geopolitical risk and supply disruptions.

Energy Fuels said the acquisition would help it build a more integrated mine-to-metal platform, shifting its focus from raw material supply to higher-value refined products. The company aims to become a supplier of rare earth alloys, a segment that commands stronger margins and offers longer-term contracts with industrial customers.

Australian Strategic Materials brings established and planned processing assets to the deal. Its Korean Metals Plant is already operating and is regarded as a key non-China facility for refining rare earth materials. The company is also planning a US Metals Plant, which would further expand allied-country processing capacity.

Industry analysts say the transaction reflects a broader push to rebalance critical mineral supply chains. Governments in the US, Australia and other allied economies have increased support for projects that reduce dependence on single-country processing networks, particularly for materials seen as strategically important.

The deal also carries risks. Integrating operations across jurisdictions, managing capital costs and navigating permitting timelines could test the combined group. Financing requirements may rise as the company expands processing capacity.

Still, the strategic direction is clear. As demand from electrification and clean energy accelerates, companies that secure downstream processing early are likely to play a larger role in shaping more resilient global rare earth supply chains.