Elmet Group wins $2 billion US tungsten stockpile contract

Elmet Group has secured a significant $2 billion contract with the U.S. Defense Logistics Agency (DLA) to aid in rebuilding the National Defense Stockpile and bolster the country's tungsten supply chain. The contract, which includes a $150 million guaranteed funded commitment, covers the supply of tungsten ores, concentrates, and sodium tungstate.

Tungsten, a critical mineral with extreme heat resistance and hardness, is essential for aerospace and defense equipment. Elmet will commence deliveries to the stockpile once additional supplies become available through mining investments, offtake agreements, and processing capacity expansions. The award comes amid Washington's efforts to reduce reliance on China and Russia for tungsten, as the critical mineral faces tightening global supply due to export restrictions and the absence of U.S. tungsten mines.

Separately, Elmet has also received $450 million from the U.S. Department of War to accelerate domestic manufacturing expansion and strengthen partnerships across its tungsten supply chain. The investment includes a $200 million initial drawdown, with additional funding to follow, and the government will receive redeemable preferred equity, warrants, and board appointments.

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

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