Energy Fuels Pursues Vertical Integration with Rare Earths Acquisition

Energy Fuels CA2926717083

In a strategic move to solidify its position in the critical minerals sector, Energy Fuels has announced plans to acquire Australian Strategic Materials Limited (ASM). The proposed transaction aims to create a fully integrated producer, controlling the supply chain from mine to finished metal. The deal's successful completion is contingent upon securing several key regulatory and shareholder approvals.

This acquisition represents a significant expansion of Energy Fuels' footprint in the rare earth elements (REE) market. By combining operations, the company seeks to establish a larger, vertically integrated entity. Rare earths are essential components in modern technologies, including the permanent magnets used in electric vehicles and various defense applications. A robust "mine-to-metal" model could enhance Energy Fuels' standing within global supply chains.

The announcement comes amid a favorable environment for the company's core commodities. At the start of 2026, uranium prices have continued their upward trajectory, with futures trading above $85 per pound. This strength is driven by constrained supply and strong signals pointing to sustained long-term demand. Concurrently, increasing political pressure in Western nations to develop more independent and secure rare earth supply chains adds strategic weight to the transaction.

Transaction Details and Conditions

Energy Fuels and ASM have entered into a Scheme Implementation Deed, setting the formal framework for the proposed takeover. The critical terms of the agreement are outlined below:

• Target Company: Australian Strategic Materials Limited (ASM)
• Valuation: Approximately AUD 447 million in equity value
• Transaction Structure: Acquisition of all outstanding ordinary shares of ASM
• Agreement Date: January 20, 2026
• Expected Completion: Late in the first half of 2026
• Key Conditions: Approval by ASM shareholders, clearance from the Federal Court of Australia, and necessary regulatory consents, including from the Foreign Investment Review Board.

The closing of the deal is therefore subject to several customary, though potentially time-consuming, clearances. Both parties currently anticipate finalization near the end of the first six months of the year.

Broader Corporate Strategy

The planned acquisition of ASM is consistent with a series of recent strategic initiatives by Energy Fuels. Earlier in January, the company revealed plans to expand its U.S.-based capacity for processing rare earth feedstocks. The ASM transaction would accelerate this strategic direction by providing an additional resource base, greater processing depth, and enhanced control across the value chain.

For the coming months, the path forward is clearly defined. Completion hinges on successful shareholder and court votes, along with the necessary regulatory green lights. Should this process conclude as scheduled by the end of the first half of 2026, Energy Fuels stands to meaningfully expand its role within Western supply chains for both uranium and rare earth elements.

@ boerse-global.de | CA2926717083 ENERGY