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.