Elmet Group wins $2 billion US tungsten stockpile contract

On September 14, Reuters reported that Elmet Group secured a significant $2 billion contract from the U.S. Defense Logistics Agency (DLA) to bolster the National Defense Stockpile and fortify the nation's tungsten supply chain. The contract, including a $150 million funded commitment, will supply tungsten ores, concentrates, and sodium tungstate to DLA Strategic Materials.

Tungsten, prized for its heat resistance and hardness, is essential in aerospace and defense equipment to endure extreme temperatures, stress, and wear. Elmet stated it would commence deliveries only when further resources from mining investments, off-take agreements, and processing capacity expansions become available, to maintain existing U.S. manufacturers' supply continuity.

The award comes amid Washington's efforts to diversify tungsten sources, as China and Russia restrictions and the lack of U.S. mines tighten global supply. Elmet also announced receiving $450 million from the U.S. Department of War to boost domestic manufacturing and strengthen supply chain partnerships. The investment includes an initial $200 million payment at closing, with further funding to follow.

Elmet plans to invest over $165 million in Maine, Michigan, and Ohio facilities to expand production capacity, increase tungsten output, and upgrade infrastructure supporting U.S. defense, aerospace, and industrial programs.