Department of War Makes Landmark $450 Million Commitment to Secure America’s Tungsten Supply Chain

The Elmet Group Company, Portland, Maine, announced a $450 million committed investment from the U.S. Department of War to expand U.S. tungsten manufacturing and strengthen allied supply chains for critical materials. The funding will support domestic production, long-term raw material access, and expanded mining and processing capacity, including more than $165 million for Elmet operations in Maine, Michigan, and Ohio that manufacture and process tungsten, molybdenum, and other advanced materials.

Elmet said the investment will also support mining and processing activities in the United States, Australia, and Spain. The company will create a new division, Elmet Refining & Trading, to coordinate sourcing, refining, processing, and delivery across its global network.

Tungsten is essential for defense and industrial uses because it withstands extreme heat, pressure, and wear. Elmet supplies major U.S. defense programs including Patriot, Javelin, AEGIS, Trident II, THAAD, and Virginia- and Columbia-class submarines. The company describes itself as the only U.S.-owned, vertically integrated tungsten producer serving a broad range of critical markets.

Under the agreement, the Department will provide an initial $200 million at closing, followed by additional drawdowns. In return, it will receive redeemable preferred equity, warrants for up to 19.9% of Elmet’s common stock, and board representation rights.

Elmet also plans to invest about $150 million in Blue Moon’s Springer Tungsten Complex in Nevada to restart and expand ammonium paratungstate conversion capacity. Separately, Elmet Technologies received a Defense Logistics Agency contract worth up to $2 billion to help rebuild the U.S. National Defense Stockpile, with deliveries phased as new supply becomes available.