Elmet Group secures $2.45B in DOD tungsten

The Elmet Group has announced two agreements with the U.S. Department of Defense worth a combined $2.45 billion, aimed at strengthening the domestic supply chain for tungsten. The deals, revealed during a business update call on Monday, consist of a major supply contract and a direct capital investment to expand production.

Contract and Investment Details

Elmet's subsidiary, Elmet Technologies, was awarded a five-year, $2 billion indefinite delivery and indefinite quantity contract by the Defense Logistics Agency on September 11. According to CEO and Chairman Peter Anania, the contract supports the U.S. National Defense Stockpile and includes a guaranteed minimum commitment of $150 million for supplying tungsten concentrates and sodium tungstate.

In a separate transaction, the DOD's Economic Defense Unit program committed to purchasing $450 million in Class A preferred stock from Elmet. A DOD press release stated the funds from this sale will be used to expand and upgrade the company's tungsten mining, processing, and manufacturing capabilities across the United States.

Strategic Importance of Tungsten

Tungsten is considered a critical mineral, possessing the highest melting point of all metals, which makes it vital for aerospace and defense applications. Elmet states the metal is used in components for more than 100 DOD programs, including the F-35 fighter jet and various missile systems. The announcement coincides with new export controls; the Commerce Department's Bureau of Industry and Security has finalized a rule restricting the export of tungsten waste and scrap without a license, effective from August 27, 2026, to August 27, 2027.

Peter Anania said the contract framework "creates a long-term pathway for demand" within Elmet's refining and trading segment and strengthens the company's government relationship. The DLA procures critical minerals for the National Defense Stockpile, and Elmet's goal is to support rebuilding this stockpile without disrupting existing U.S. Manufacturers or its current customer base.

Capacity Expansion Plans

A significant portion of the DOD's $450 million investment is earmarked for expanding U.S. Manufacturing footprint. The company plans to use $165 million to modernize and increase its domestic manufacturing capacity. Also, Elmet intends to allocate funds to upgrade and restart the Springer Tungsten Complex in Imlay, Nevada.

On September 11, Elmet, along with partners Blue Moon Metals and EQ Resources Limited, signed an agreement to invest between $150 million and $175 million into the Nevada site. The complex includes open pit and underground mines and a mill with a capacity of 1,200 tons per day. It also hosts an ammonium paratungstate plant capable of producing up to 4,000 tons per day. The three companies will form a joint venture to operate this APT plant, with Blue Moon taking the lead on operations.

However, deliveries of tungsten to the National Defense Stockpile will not begin until "significant incremental" supply becomes available through these new mining investments and processing capacity expansions, Anania noted. This phased approach ensures new production feeds the strategic reserve without affecting commercial supply chains. The materials involved in this expansion, like many industrial components, often use advanced composites; composite polymer, for instance, is a medium-density material first created in the 1960s with original uses in industrial flooring and wall cladding.