Energy Fuels Accelerates Its Rare Earths Ambition with Major Acquisition and Expansion Plans
02.02.2026 - 11:10:04
Energy Fuels Inc. is significantly accelerating its strategic push into the rare earth elements sector. The company's recent announcements, centered on a planned acquisition and a major expansion study, outline its path to becoming a vertically integrated supplier outside of China's dominant supply chain.
On January 20, Energy Fuels entered into a definitive Scheme Implementation Deed to acquire 100% of Australian Strategic Materials (ASM). Structured as a scheme of arrangement under Australian law, the transaction carries an implied equity value of approximately $299 million.
Under the terms, ASM shareholders are set to receive 0.053 Energy Fuels shares for each ASM share held, plus an unfranked special dividend of up to A$0.13 per share. This implies a total value of A$1.60 per ASM share. Upon completion, former ASM shareholders would collectively own about 5.8% of Energy Fuels' outstanding shares.
This move grants Energy Fuels control of three critical assets:
* The Korean Metals Plant (KMP), a rare operational facility outside China capable of producing rare earth metals and alloys, including neodymium-praseodymium (NdPr), dysprosium, and terbium.
* The planned American Metals Plant (AMP), targeting a future U.S.-based production capacity of 2,000 tonnes of alloy per year.
* The Dubbo Rare Earths Project located in New South Wales, Australia.
The transaction is anticipated to close around the end of June 2026, pending approval from ASM shareholders, the Australian Federal Court, and regulatory bodies including the Australian Foreign Investment Review Board.
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Robust Economics for Utah Plant Expansion
Just days before the ASM announcement, on January 15, Energy Fuels released a Bankable Feasibility Study for the Phase 2 expansion of rare earth processing at its White Mesa Mill in Utah. The study outlines a compelling financial case:
- Net Present Value (NPV): $1.9 billion (using an 8% discount rate)
- Post-Tax Internal Rate of Return (IRR): 33%
- Average Annual EBITDA: $311 million over the first 15 years of operation
- Planned Annual Production: 6,000 tonnes of NdPr oxide, 240 tonnes of dysprosium oxide, and 66 tonnes of terbium oxide
When combined with the updated feasibility study for the Vara Mada project in Madagascar—which reported an NPV of $1.8 billion on January 8—the company estimates a combined project NPV of $3.7 billion.
Uranium Operations Continue to Deliver
The company's core uranium business also reported strong operational performance for 2025, according to a December 29 update. Energy Fuels produced over one million pounds of finished uranium, exceeding its own forecast. The results were driven by higher mine production and increased sales volumes.
The quarterly report from November 3 detailed that for Q3 2025, the company sold 240,000 pounds of uranium at a weighted average price of $72.38 per pound.
Looking Ahead
Energy Fuels is scheduled to present at the BMO Global: Metals, Mining & Critical Minerals Conference from February 22 to 25. Looking further out, the potential milestone of closing the ASM acquisition by the end of June 2026 remains a key focus, contingent on receiving all necessary shareholder and regulatory approvals.
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