U.S. Department of War Invests $450 Million in The Elmet Group for Tungsten Supply Security
News related to:The Elmet Group Co · 2 min read
The U.S. Department of War has committed $450 million to The Elmet Group Co., a U.S.-based provider of critical materials and advanced components, to bolster the nation's tungsten supply chain. This significant investment aims to enhance domestic manufacturing capacity and reduce reliance on foreign sources of critical minerals.
The Elmet Group, through its operations in Maine, Michigan, and Ohio, will receive more than $165 million to expand its production capabilities. The funds will be used to modernize infrastructure and increase tungsten output, supporting critical defense, aerospace, and industrial applications. The company also plans to allocate approximately $150 million to the Blue Moon Springer Tungsten Complex in Nevada, forming a majority-owned joint venture with Blue Moon Metals and EQ Resources of Australia. This venture aims to restart and expand ammonium paratungstate conversion capacity at the facility.
To further strengthen its supply chain, The Elmet Group is establishing a new division called Elmet Refining & Trading (ERT). This division will coordinate sourcing, refining, and delivery activities across a diversified supply chain, ensuring reliable long-term access to tungsten for the U.S. and its allies. Additionally, the company will support strategic mining, processing, and commercial partnerships in the U.S. and allied countries, including investments in the United States, Australia, and Spain. These efforts are part of a broader initiative to create a more resilient supply chain for critical materials, independent of China.
The Department of War's investment is part of its Economic Defense Unit, which was established to accelerate U.S. defense industrial base production. George K.
The Elmet Group's vertically integrated production capabilities, sourcing strategy, and commitment to expanding capacity position the company to play a meaningful role in strengthening supply chains. Peter V.
Separately, Elmet Technologies, a subsidiary of The Elmet Group, has been awarded an indefinite delivery/indefinite quantity (IDIQ) contract by the Defense Logistics Agency (DLA) to support the rebuilding of the U.S. National Defense Stockpile. The contract has a ceiling value of up to $2 billion, including a guaranteed funded commitment of $150 million, and covers the supply of tungsten ores, concentrates, and sodium tungstate to DLA Strategic Materials.
The Elmet Group plans to phase in deliveries to the National Defense Stockpile as new production capacity comes online from its approved supplier network, including Blue Moon Metals' Springer Mine in Nevada and EQ Resources' Mt. Carbine Mine in Australia and Barruecopardo Mine in Spain. This contract provides a long-term framework to strengthen domestic and allied sources of a critical material essential to U.S. defense and industrial capabilities.
In summary, The Elmet Group's investment from the U.S. Department of War is a significant step in securing a resilient supply of tungsten for the U.S. and its allies. The company's efforts to expand domestic manufacturing, strengthen global mining and processing capacity, and create a vertically integrated tungsten supply chain are crucial for maintaining national security and economic resilience.