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Australian Strategic Materials Limited (ASM or the Company) (ASX:ASM) welcomes the announcement from Prime Minister Anthony Albanese and the Australian Labor Party, that a re-elected Australian Federal Government would establish a national critical minerals strategic reserve.

The announcement has outlined plans for a re-elected Australian Federal Government to establish a strategic reserve of critical minerals (including rare earths) with an initial investment of A$1.2 billion, consisting of national offtake agreements and stockpile. The Reserve has the potential to provide vital support for the critical minerals industry, helping to mitigate risks of disruption and market manipulation.

ASM Managing Director and CEO Rowena Smith, said: “These plans further highlight the global importance of Australia’s rich critical mineral endowment and processing capability. As a country, Australia can play a leading role in the development of secure, alternative rare earth and critical minerals supply chains and this initiative will add impetus to that objective.”

The Dubbo Project – positioned to respond

ASM is developing a unique rare earth and critical minerals mining and processing project in Dubbo, New South Wales. The Dubbo Project will produce a range of products that are in growing demand and facing increased global supply chain challenges. The project will extract light and heavy rare earths, zirconium, niobium and hafnium and, through its advanced process flowsheet, deliver a range of oxides and chlorides that will add value to Australia’s resources onshore.

A national critical minerals reserve aims to secure those materials that are a matter of national security and are impacted by price manipulation.

“The Dubbo Project’s broad basket of products are vital for a range of critical global industries including, advanced manufacturing, clean energy, defence and aerospace. All products currently appear on the Australian Critical Minerals List and the official lists of many other ally countries, these lists generally signifying that a mineral is essential for economic or national security and has a supply chain vulnerable to disruption.

“As one of the few relevant projects in Australia that is shovel ready and strategically positioned to address the needs of Australia and its allies, ASM looks forward to receiving further details of the strategic reserve and how the Dubbo Project can support Australia’s objectives,” said Ms Smith.

Dubbo Project products[1]

Commodities	Product	Production Quantity Metric Tonnes Per Annum
Rare Earth Elements	Dysprosium Oxide	142 tpa
	Neodymium Praseodymium Oxide	1,342 tpa
	Samarium Europium Gadolinium Chloride	454 tpa
	Terbium Oxide	22 tpa
	Yttrium + Heavy Rare Earth Chloride	1,180 tpa
Zirconium	Zirconia	16,000 tpa
Niobium	Ferroniobium	2,650 tpa
Hafnium	Hafnium Oxide	30 tpa

View the Dubbo Project profile in the Australian Critical Minerals Prospectus.

A shifting geopolitical landscape

The rare earth and critical mineral sector has witnessed considerable volatility in recent months due to the escalating trade war between the US and China, with events continuing to unfold. ASM previously released a market update highlighting how the Company’s mine to metals strategy is uniquely placed to address the challenges and demands as a result of this geopolitical activity.[2]

A video interview with Rowena Smith discussing recent activity can be seen on the Company’s YouTube channel.

 

 

[1] Based on JORC reserves and resources. Refer to ASX Announcement: 7 December 2021, Dubbo Project Optimisation Delivers Strong Financials. All data and financial information in this announcement is taken from the Optimisation Study Work. The Company confirms that the material assumptions underpinning the estimates in the Optimisation Study Work announcement continue to apply and have not materially changed.

[2] Refer ASX Release 11 April 2025: China REE export restrictions underscore urgent need for secure alternative supply chain

Australian Strategic Materials Limited (ASM or the Company) is pleased to note the release of an Executive Order (EO) by US President Donald Trump, targeting ‘Immediate measures to increase American mineral production’. The Company applauds the direction of the EO and objectives to support the development of a secure, alternative critical minerals supply chain.

The EO – while primarily focused on the development and security of mineral production within the US – broadly aligns with ASM’s targeted expansion into the US. The EO identifies key directives to reduce US reliance on the supply of essential critical minerals from ‘hostile foreign powers’ and to support onshore mining and processing opportunities. ASM operates one of the few production facilities outside of China with the capability to take light and heavy rare earth oxides through to metal and alloy and plans to replicate it in the US.

Mine to metals strategy

ASM is pursuing a “mine to metals” strategy to extract rare earth elements at our Dubbo Project in NSW, processing them into high-purity metals and alloys through facilities in allied countries, and supply them directly to global technology manufacturers to create a secure supply chain.

Over the past 24 months, ASM has developed strong relationships with customers, investors and government in the US – aligned with the broader policy cooperation between the US and Australia. ASM Managing Director and CEO Rowena Smith visited the US and Canada earlier this month to progress existing key relationships with the US Department of Defense, Department of Commerce, and the government’s Export-Import bank, US EXIM.

“The US government has made a clear commitment to reducing reliance on critical minerals and metals supplied by ‘hostile foreign powers’, and to incentivise domestic manufacturing capabilities. ASM has a strategic advantage in supporting this objective through the replication of our successful Korean Metals Plant on US soil,” said Ms Smith.

Enhanced engagement and collaboration with the US has delivered positive strategic outcomes for ASM, including:

• Securing sale agreements for rare earth alloys with emerging US magnet manufacturers;
• Receiving conditional debt financing for up to US$600 million from US EXIM for the construction of the Dubbo Project;
• Partnering with US-based Bechtel Engineering to conduct final engineering work at the Dubbo Project;
• The submission of funding applications to the US Department of Defense (DoD); and
• Engaging with multiple US states to explore opportunities to establish a critical metals facility in the US.

US market presents significant opportunity

The Company’s first metals plant was established in South Korea in 2022 and is now in production of neodymium praseodymium (NdPr) metal and neodymium iron boron (NdFeB) alloy – supplying to a growing global customer base of rare earth permanent magnet manufacturers. Permanent magnets are integral to the manufacture of sustainable energy solutions and advanced technologies, including electric vehicles, robotics and defence applications.  The Company is also developing the Dubbo Project in New South Wales, Australia. This project will mine and process rare earths and critical minerals to oxides that can then be supplied to ASM’s metals plants.

Ms Smith’s recent North America visit included stops in Washington DC and New York, before heading to the Prospectors & Developers Association of Canada Convention (PDAC).

“There has been increasing interest in rare earth element metals and alloys – driven by national policies that prioritise the development of an onshore supply chain – and the US market presents a significant opportunity for ASM,” said Ms Smith.

“Our expansion plans into the US represent ASM’s intent to further develop the strong progress we have made in this jurisdiction. A second ASM metals plant – located in the US – will capitalise on our established technical expertise and know-how, support US objectives to grow domestic manufacturing capability, and benefit from strategic incentives and relationships,” she said.

Since commissioning its Korean Metals Plant (KMP), ASM has announced metal and alloy supply agreements with multiple customers in Asia and North America and has completed technical validation processes with potential customers in other jurisdictions. As one of the few facilities outside of China with the capability to take light and heavy rare earth oxides through to metal and alloy, ASM is strategically positioned to meet the rising demand for these materials and develop an alternative supply chain. “With potential capital assistance from the DoD and operating expense relief from federal and state tax incentives, we see significant opportunities to establish a low-cost, competitive production base in the US. A US-based metals plant would operate synergistically with the KMP and is a key pillar of ASM’s growth strategy as we seek to build a vertically integrated, secure supply chain of rare earth metals and alloys,” said Ms Smith.

As the push for secure critical mineral supply chains continues to gain momentum, ASM is positioning itself at the forefront of this global transformation. In a recent interview at PDAC 2025, ASM Managing Director and CEO Rowena Smith, shared updates about the Company’s next phase of growth – a potential new metals plant in the United States.

With ASM’s established Korean Metals Plant already supplying high-purity NdPr and NdFeB magnet metals and alloys, Rowena signalled ASM’s intentions to replicate this capability in the US. Discussions are well underway and, on her recent trip to North America, Rowena confirmed that the Company has submitted a whitepaper to the Department of Defense for potential funding for the project.

However, for ASM’s metals plants to operate at full capacity, feedstock security is key—and that’s where the Dubbo Project comes in. This world-class resource will provide both light and heavy rare earths, making it a crucial part of the solution to build an alternative supply chain.

The US government’s renewed focus on securing domestic rare earth supply chains presents a significant opportunity. With growing interest from both public and private sectors, ASM’s integrated mine to metals strategy positions it as a key player in building a resilient, sustainable supply chain for the future.

Get all the latest updates in the interview with Investor News, below:

ASM is redefining the rare earths and critical minerals supply chain…

With a bold approach that adds value all the way from mine to metals, we’re supporting an alternative global magnet market.

It begins at our Dubbo Project in NSW, Australia, where we will mine, separate and refine a suite of critical minerals all the way through to high-purity oxides – adding value onshore to Australia’s resources.

Further downstream, our proven metallisation capability in South Korea is ramping up metal and alloy production aligned to the requirements of a growing number of domestic and export customers.

We’re working with emerging as well as established magnet producers globally in order to get into their supply chain as they grow this emerging industry of non-China producers.

Rowena Smith, ASM Managing Director & CEO

Watch this interview with our Managing Director and CEO Rowena Smith and David Tasker from The Pick Magazine, as she explains why ASM’s opportunity is so compelling and what’s in the pipeline.

ASM has released its 2024 Q4 Quarterly Report. 

Key highlights include:

• Encouraging results from Rare Earth Options Assessment (REOA) initial leaching testwork.
• Federal Government grant instalment received to support further REOA development work.
• Delivery of NdPr metal and NdFeB alloy to rare earth permanent magnet producers.
• Strong cash flow discipline and closing cash position.

Managing Director and CEO Rowena Smith presented the Australian Strategic Materials (ASM) opportunity at Mines and Money London in December – part of the Resourcing Tomorrow exhibition.

From our advanced rare earths and critical minerals mining and processing project in Dubbo, New South Wales to our cutting-edge metals plant in Ochang, South Korea, ASM is building an alternative global supply chain to support the clean energy transition.

Rowena gave an overview of both key assets in our mine to metals strategy and provided an update on the optimisation work we’re conducting at the Dubbo Project in collaboration with ANSTO (Australia’s Nuclear Science and Technology Organisation – supported by a $5 million Federal Government grant via the Department of Industry, Science and Resources.

Watch the 10 minute presentation below.