Critical step for Australian Strategic Materials as rare earths reset heats up
- 15 July 2025
Australian Strategic Materials’ expanded alliance with Canada’s Neo Performance Materials on rare earth metal supply comes at a crucial time for the global mine-to-magnet RE supply chain, according to ASM CEO Rowena Smith.
Speaking after the Australian junior announced a maiden sale of terbium and dysprosium metal from its Korea plant to Magnequench, a Neo subsidiary, Smith said the US Government’s recent landmark RE price floor and funding deal with domestic producer MP Materials underlined a growing emphasis on securing Western critical materials supply chains.
“The industry is undergoing rapid transformation, driven by strategic partnerships and surging demand across key sectors,” she said.
“With China restricting export of these rare earths ASM is positioned to be able to provide these materials to Australia and our allies when we need it most.
“Combined with our Korean metals plant which is already in operation and our established customers in North America, Asia and Europe, ASM offers a unique solution that goes all the way from mine through to metal. We have very strong international government support both here in Australia as well as the US and Canada.”
ASM has outlined a plan to accelerate delivery of its flagship Dubbo project in New South Wales via a phase-one heap leach production option costing A$740 million, 56% less than the blueprint presented in a 2021 optimisation feasibility study. It aims to complete a prefeasibility study on the new plan in the first quarter next year.
As well as the shipment of metal from Korea to Neo’s permanent magnet manufacturing facility in Estonia, ASM has completed a sale of a further 10 tonnes of neodymium-praseodymium (NdPr) to the Canadian group.
Smith said establishing an alternative mine-to-magnet RE supply chain was a challenge and strategic partnerships were critical.
Neo Magnequench executive vice president Greg Kroll said: “Our partnership with ASM is an important step toward building diversified rare earth supply chains, particularly for critical heavy rare earth elements like terbium and dysprosium. ASM’s ability to produce high-purity rare earth metals using its in-house expertise aligns with Neo’s commitment to sourcing materials from trusted, innovative partners.
“We look forward to deepening our collaboration as global demand for these essential materials continues to grow.”
Smith recently joined representatives from BHP, Lynas Rare Earths and Jindalee Lithium at a Quad Critical Minerals Business Roundtable in Washington DC, held alongside a Quad Foreign Ministers’ Meeting.
“The Quad has rightly acknowledged that economic resilience now depends on the ability to mine, process and refine critical minerals outside China. We’re pleased to be part of those conversations and even more pleased to be delivering a solution,” she said.
“The latest news from MP Materials is further demonstration of the strategic intent of the US Government to secure rare earth supply chains and the rapidly evolving market we are operating in.”
Smith is speaking at IMARC 2025 on developing pathways to secure strategic and critical minerals supply. The major international event is being held in in Sydney from October 21-23.
ASM’s share price up more than 20% in the past month, capitalising the company at about A$136 million.
