New York, Jan 21, 2026, 08:10 (EST) — Premarket
- Shares of Energy Fuels jumped roughly 7% in premarket trading following news of an all-stock acquisition of Australia’s Strategic Materials
- The deal boosts rare-earth metals and alloys production in South Korea and includes plans for a new plant in the U.S.
- Investors are keenly awaiting the timing of the deal, its approvals, and updates on the company’s next moves slated for later this year
Shares of Energy Fuels Inc jumped roughly 7% to $23.52 in premarket trading Wednesday, following the announcement of a $300 million deal with Australia’s Strategic Materials aimed at boosting its rare-earth efforts.
The company announced it has agreed to acquire Australian Strategic Materials (ASM), aiming to establish a complete rare earth supply chain beyond China. This move will add metals and alloy production to its existing U.S. processing operations. “Energy Fuels is executing our plan to create the largest fully integrated producer of REE materials outside of China,” CEO Mark Chalmers said in a statement. (Energy Fuels)
Washington and Canberra are stepping up efforts to shift more mining, separation, and processing into allied supply chains. The U.S.-Australia framework signed last October promises at least $1 billion in funding for projects in both countries within six months. It also suggests tools like “price floors or similar measures” to stabilize markets vulnerable to disruptions from non-market supply. (The White House)
ASM announced its shareholders will get 0.053 Energy Fuels shares (or CHESS Depositary Interests) for every ASM share they hold, plus an unfranked special dividend up to A$0.13. This puts the total implied value at A$1.60 per ASM share. The company said this represents an implied premium of roughly 121% over ASM’s closing price on Jan. 20. It also provided an indicative timetable, starting with draft scheme documents due in March, followed by court hearings and a shareholder vote scheduled for the first half of 2026. The deal will proceed via a “scheme of arrangement,” which is a court-supervised merger process under Australian law.
“This is happening because everyone recognises that… rapid establishment of the supply chain you are going to need multiple parties who are working together,” ASM CEO Rowena Smith told Reuters in an interview. Reuters highlighted rising rare-earth prices as Western governments push to reduce dependence on China, noting Lynas Rare Earths as the largest producer outside the country. (Reuters)
Energy Fuels is presenting the deal as a strategy to link its rare-earth oxide production at Utah’s White Mesa Mill with ASM’s Korean Metals Plant, which ASM describes as a producer of rare-earth metals and alloys. They also plan to integrate a future American Metals Plant. The goal is to shift from merely selling oxides to offering more valuable finished products.
For those tuning into earnings calls, the terminology is important. NdPr stands for neodymium-praseodymium, essential for permanent magnets found in electric motors and wind turbines. “Alloy” production sits further down the line, nearer to the magnet supply chain.
As U.S. markets prepare to open, traders are focused on how swiftly Energy Fuels can fold ASM’s operations into its own, what the expansion budget looks like, and if customers will commit to offtake deals at sustainable prices.
But the upside isn’t guaranteed. The deal must clear several hurdles—ASM shareholders and Australian regulators need to sign off, and there’s always the chance of a better bid. Plus, rare-earth markets can shift quickly; any price drops or setbacks in boosting production would put pressure on a growth story that relies heavily on tight supply.
Energy Fuels will hold its conference call about the transaction at 11:00 a.m. Eastern Time on Wednesday. After that, the formal scheme process ASM outlined for 2026 will follow. (PR Newswire)
