US Department of War commits $450 million to tungsten supply chain
The investment is a fresh effort of the US government to become less reliant on China for critical minerals.
The US Department of War (DoW) has committed $450 million to strengthen the nation's tungsten supply chain through Elmet Group (ELMT). This investment is part of the DoW's Economic Defense Unit, which focuses on economic initiatives to bolster the defense industrial base. The funding will support domestic mining, processing, and manufacturing capacity for tungsten, a critical mineral used in various defense applications.
ELMT already supplies tungsten to US defense programs, including missile systems and submarines. The DoW will initially invest $200 million, with additional drawdowns to follow. A significant portion of the investment, $165 million, will go towards expanding US manufacturing facilities in Maine, Michigan, and Ohio. Another $150 million will be allocated to Blue Moon Metals' Springer Tungsten Complex in Nevada, which will restart and expand its ammonium paratungstate (APT) conversion capacity.
This investment aims to secure a resilient supply of tungsten, which is crucial for America's defense, industrial, and economic future. ELMT will also establish Elmet Refining and Trading (ERT), a new division responsible for coordinating sourcing, refining, and delivery activities across a diversified supply chain. ERT will oversee investments in key mines in Australia and Spain, forming majority-owned joint ventures to restart and expand tungsten production.
Additionally, Elmet Technologies, a subsidiary of ELMT, has secured a US government contract worth up to $2 billion to further strengthen the long-term resilience of the country's tungsten supply chain.
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