Here's why the Australian Strategic Materials (ASX:ASM) share price has leapt 12% in a week

You'll find rare earths used in most every kind of modern technology.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published December 16, 2021 3:13 pm AEDT

The Australian Strategic Materials Ltd (ASX: ASM) share price is up 5.66% at time of writing to $11.38 per share.

The ASX rare earths and strategic metals explorer is gaining today even as the All Ordinaries Index (ASX: XAO) dips 0.34% into the red.

Factoring in today's intraday gains, the Australian Strategic Materials share price is up nearly 12% since the closing bell last Wednesday.

jump in asx share price represented by man leaping up from one wooden pillar to the next — Image source: Getty Images

What's driving ASX investor interest?

The Australian Strategic Materials share price has closed higher on 4 of the last 5 days of trading.

The most recent price-sensitive news from the miner was released after market close on Tuesday.

In that release Australian Strategic Materials reported that it had signed a Joint Statement of Cooperation with the Korean Mine Rehabilitation and Resource Corporation (KOMIR).

According to the Joint Statement of Cooperation, Australian Strategic Materials and KOMIR will work together to expand the use of rare earths and critical metals in Korea.

The 2 companies will also cooperate to develop import opportunities to secure the supply of rare earths and critical metals for Korea's industries. The miner said this includes supplies for strategic stockpiling.

Commenting on the agreement, Australian Strategic Materials' managing director, David Woodall said:

This builds on the cooperative and collaborative relationship between Korea and ASM, creating further opportunities to engage on the strategic issue of critical minerals and metal supply.

This Joint Statement of Cooperation is another firm sign of Korea's commitment to securing its supply of critical metals and to working with ASM to deliver an outcome that is beneficial to the Korean supply chain.

Woodall said that Australian Strategic Materials will start producing critical metals at its Korean Metals Plant in 2022.

Australian Strategic Materials share price snapshot

The Australian Strategic Materials share price is up an impressive 132% over the past full year. By comparison the All Ords has gained 10% over that same time.

Over the last month, shares in Australian Strategic Materials have gone the other direction, down 16%.

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