Energy Fuels (ASX: EF2) has reached a key milestone in its rare earth element growth strategy with the completion of its $450 million acquisition of Australian Strategic Materials Limited (ASM).

Energy Fuels is a leading producer of rare earth elements (REE), uranium, and other critical materials. The acquisition of ASM represents a major step in the company's long-term aim of building an integrated mine-to-magnet rare earth platform, an ambition shared by several Western producers as governments and manufacturers seek to reduce reliance on China, which dominates global rare earth mining, processing, and magnet production.

"We are thrilled to welcome the ASM team to Energy Fuels. ASM brings exceptional technical expertise, commercial experience and proven capabilities in rare earth metals and alloys that significantly strengthen our organisation and accelerate our strategy to build a fully integrated, Western mine-to-magnet supply chain," Energy Fuels president and CEO Ross Bhappu said.

"By adding ASM's operating Korean Metals Plant in Ochang, South Korea, Energy Fuels immediately gains commercial scale metal and alloy production capacity, expanding into one of the most critical and constrained vulnerabilities of global rare earth supply chains."

Bhappu revealed that Energy Fuels also intends to replicate this capability at a new American Metals Plant as market conditions warrant, leveraging the proven technology and operational expertise developed at the Korean Metals Plant.

"Additionally, ASM's Dubbo project in Australia brings a long-life and strategically important resource of rare earths and other critical minerals to Energy Fuels' portfolio," he told shareholders.

"The closing of the ASM acquisition is a defining moment in Energy Fuels' strategy to become a fully integrated mine-to-magnet rare earth company and demonstrates our team's successful execution on that vision."

"With ASM's existing operating facilities, proven technical expertise, and intellectual property now a part of Energy Fuels, we have assembled commercial capabilities at all upstream and midstream stages of the rare earth permanent magnet supply chain."

The acquisition adds 1,300 tonnes per year of existing neodymium-iron-boron (NdFeB) alloy production capacity at the Korean Metals Plant, together with existing commercial metallisation capabilities for neodymium-praseodymium (NdPr) and developing metallisation capabilities for dysprosium (Dy) and terbium (Tb).

Bhappu said this directly complements Energy Fuels' NdPr, Tb, and Dy oxide production and expansion initiatives at its White Mesa Mill in Utah.

The Korean Metals Plant is currently being expanded to increase NdFeB alloy capacity to 3,600 tonnes per year, with commissioning expected as early as the end of 2026. According to the company, the expansion could potentially provide enough NdFeB alloy for more than one million electric vehicles per year, underscoring the demand from EV drivetrains, wind turbines, and other technologies that depend on rare earth permanent magnets.