The Elmet Group (NASDAQ:ELMT) has secured a US$450 million ($630 million) investment from the US Department of War (DoW) to expand its domestic tungsten manufacturing capabilities and strengthen its supply chain partnerships.
The funding will be used to increase US tungsten manufacturing, secure long-term access to critical raw materials, and expand mining and processing capacity, according to the company.
More than US$165 million is expected to be invested across Elmet’s operations in Maine, Michigan, and Ohio, which manufacture and process tungsten and other advanced materials and components.
Tungsten is considered strategically important due to its ability to withstand extreme heat, pressure, and wear, making it essential to defence equipment and a range of advanced industrial applications.
China currently dominates global tungsten supply, producing around 67,000 tonnes in 2025, or nearly 80% of global mine output. The US produced no mined tungsten during the year and has not recorded domestic mine production for a decade.
“This investment represents an important step toward securing a resilient supply of tungsten, a material that is critical to America’s defense, industrial, and economic future,” Elmet Chairman and CEO Peter V. Anania says.
Domestic tungsten production boost
Beyond upgrading Elmet’s existing manufacturing operations, the DoW funding is expected to support the company’s broader network of mining and supply partnerships.
Around US$150 million is expected to be invested in the Springer Tungsten Complex in Imlay, Nevada, a brownfield operation that is targeted to restart production in late 2027.
A further US$150 million is expected to support partnerships and mining investments outside the US, including in Australia and Spain.
The investments are designed to create a more integrated tungsten supply chain stretching from mine production and raw materials through to processing and advanced manufacturing.
Rebuilds US stockpile
Separately, Elmet has been awarded a contract by the Defense Logistics Agency (DLA) to support the rebuilding of the US National Defense Stockpile and strengthen the long-term resilience of the country’s tungsten supply chain.
The contract carries a ceiling value of up to US$2 billion, including a guaranteed funded commitment of US$150 million.
It covers the supply of tungsten ores, concentrates, and sodium tungstate to DLA Strategic Materials.
Elmet says it will not begin delivering material to the stockpile until additional supplies secured through mining investments, offtake agreements, and processing capacity expansions become available.
The approach is intended to prevent government stockpiling from diverting existing tungsten supplies away from US manufacturers.
Write to Jackson Chen at Mining.com.au
Image: The Elmet Group
