Energy Fuels Completes Acquisition of Australian Strategic Materials, Bolstering Western Rare Earth Supply Chain

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), a leading producer of rare earth elements, uranium, and other critical materials, has announced the completion of its acquisition of Australian Strategic Materials Limited (ASM). This strategic move is set to significantly enhance Energy Fuels' position in the global rare earth market by adding commercial-scale metals and alloys production capabilities, a critical step toward establishing a fully integrated Western mine-to-magnet supply chain.

The acquisition brings ASM's operating Korean Metals Plant in South Korea under Energy Fuels' umbrella. This facility currently boasts an annual production capacity of 1,300 tonnes of neodymium-iron-boron (NdFeB) alloy, a key component in permanent magnets used in electric vehicles, wind turbines, and various electronics. Moreover, the plant has commercial metallization capabilities for neodymium-praseodymium (NdPr), another essential rare earth element. Expansion plans are already underway to increase NdFeB alloy capacity to 3,600 tonnes per year, with commissioning anticipated as early as the end of 2026. This expansion will further solidify Energy Fuels' ability to meet growing demand for rare earth metals outside of China.

In addition to the Korean facility, the acquisition includes ASM's Dubbo project in Australia, which adds a long-life resource of rare earths and other critical minerals to Energy Fuels' portfolio. This project is expected to provide a sustainable source of raw materials, reducing reliance on overseas suppliers and enhancing supply chain security for Western nations.

The transaction complements Energy Fuels' existing production and expansion initiatives for NdPr, terbium, and dysprosium oxides at its White Mesa Mill in Utah, a fully licensed conventional uranium mill that also processes rare earth elements. The company is also developing heavy mineral sands projects in Brazil, Australia, and Madagascar, which will further diversify its resource base. With this acquisition, Energy Fuels now controls a comprehensive platform spanning mining, processing, oxide production, metals, and alloys. The company has also announced its planned acquisition of Vacuumschmelze (VAC), a permanent magnet manufacturer, which would extend its capabilities into the final magnet production stage, completing the mine-to-magnet value chain.

The completion of this acquisition marks a pivotal moment for Energy Fuels and the broader Western rare earth industry. By securing a fully integrated supply chain, the company is positioning itself to compete with Chinese dominance in the rare earth market. This is particularly significant given the increasing global demand for rare earth elements in clean energy technologies and defense applications, and the strategic importance of reducing dependency on Chinese exports. As geopolitical tensions continue to highlight supply chain vulnerabilities, Energy Fuels' move is a proactive step toward ensuring a reliable and secure supply of these critical materials for Western economies.

Following the transaction's completion, ASM shares have been delisted from the Australian Securities Exchange, marking the formal integration of ASM's operations into Energy Fuels. For more details on this acquisition, visit https://ibn.fm/Yk8Fc.