The U.S. Department of War has committed $450 million to Elmet Group, acquiring up to 19.9 percent of the company's common stock and board representation as part of a direct effort to establish domestic tungsten supply resilience independent of China.
The DoW will invest $200 million at closing, with additional drawdowns planned. In exchange, it receives redeemable preferred equity and the right to appoint one independent director to Elmet Group's board and one non-voting observer.
Tungsten's material properties—extreme heat, pressure and wear resistance—make it essential for defense applications. Elmet Group supplies tungsten for Patriot and Javelin missile systems, Trident II missiles, and Virginia- and Columbia-class submarines. The mineral also serves aerospace, energy and medical sectors.
The investment originates from the Department's newly established Economic Defense Unit. George K. Kollitides II, the unit's director, said, "The Department is committed to empowering the American warfighter and workforce, strengthening the industrial might that powers and protects our way of life."
Of the total commitment, $165 million will fund capacity expansion at Elmet Group's U.S. manufacturing facilities in Maine, Michigan and Ohio. An additional $150 million supports a majority-owned joint venture between Blue Moon Metals, Elmet Group and Australia's EQ Resources to restart and expand ammonium paratungstate conversion capacity at the Springer Tungsten Complex in Nevada. The mine and mill are projected to restart by end of 2027; the APT facility by mid-2028.
Elmet Group will establish Elmet Refining and Trading, a new division tasked with coordinating sourcing, refining and delivery across a diversified supply network. The division oversees international partnerships including agreements with Mt. Carbine Mine in Australia and Barruecopardo Mine in Spain—directly positioning allied capacity outside China's supply chain.
China controls approximately 60 percent of global tungsten production and over 80 percent of processing capacity. The DoW's capital injection and multi-pronged approach—combining domestic capacity expansion with allied production agreements—provides measurable infrastructure to reduce single-source dependency. Success hinges on the 2027–2028 operational timeline and sustained demand for domestic and allied material against price competition from incumbent Chinese producers.
