Australian Strategic Materials' (ASM's) shares surged as much as 27% on Friday in Sydney trading after the company announced a wave of rare earth alloy sales and growing demand for its products amid rising global rare earth element (REE) supply chain tensions.

The rally was driven by news that ASM had secured binding sales agreements for high-purity neodymium/praseodymium (NdPr) metal and neodymium/iron/boron (NdFeB) alloy with customers in the US and Germany, including magnet makers Noveon Magnetics and Vacuumschmelze.

The firm also confirmed the completion of a 19-t NdPr metal shipment to Toronto-listed Neo Performance Materials' Magnequench division.

The update highlighted strong momentum at ASM’s Korean Metals Plant (KMP) – one of the few commercial rare earth metal and alloy production facilities outside China – as the company positions itself as a key player in efforts to build an ex-China supply chain for critical magnet materials.

“Our strengthening metal and alloy order book is the result of consistent and purposeful customer collaboration and enhanced technical know-how, combined with the increasing urgency for an alternative rare earth supply chain to meet global forecast demand,” said ASM MD and CEO Rowena Smith.

“In recent months, ASM’s position as one of the leading ex-China producers of NdPr metal and NdFeB alloy has been cemented. Having navigated rigorous validation processes with existing and potential customers – proving our capability and product quality – we are now in a position to leverage our growing experience and reputation in the industry,” she added.

REE IN FOCUS
The share price spike reflects not only commercial progress, but also geopolitical tailwinds. Growing anxiety among Western automakers and technology firms over the reliability of rare earth supplies has intensified in recent weeks, following renewed trade tensions between the US and China.

China, which accounts for about 90% of global rare-earth production, imposed export restrictions in April on the strategic minerals in response to tariffs introduced by US President Donald Trump.

The move raised alarms across industries, including the automotive and defence sectors, which are reliant on REEs. This week, automotive industries warned that China's export restrictions on rare-earth materials pose a significant threat to their production lines and local economies.

ASM said it would use Australian-sourced oxides to meet near-term orders, while it is also in discussions with Canadian company Ucore Rare Metals, which was recently awarded an $18.4-million US Department of Defense contract, to further diversify its oxide inputs.