US Government Commits $450M to Elmet Group to Revive Domestic Tungsten Supply

Key points

• The US Department of War (DoW) will invest $450 million in The Elmet Group (ELMT), including a $150 million allocation for Blue Moon Metals’ Springer tungsten complex in Nevada.
• The investment includes a $50 million prepayment facility and $25 million equity stake for Blue Moon, plus $75 million for a joint venture to restart the ammonium paratungstate (APT) plant.
• ELMT has secured a separate $2 billion contract with the Defense Logistics Agency for tungsten ores and concentrates, with a guaranteed initial commitment of $150 million.
• Production at the Springer mine and mill is expected to restart by the end of 2027, with the APT facility operational by mid-2028.
• The DoW will receive up to 19.9% preferred equity in ELMT and the right to appoint one independent director and one non-voting observer to the board.

Background

This development follows broader US efforts to secure critical mineral supply chains, including recent legal actions regarding offshore wind reviews and international partnerships like the one formed between Almonty and Rwanda. The focus on tungsten reflects the strategic importance of the metal in defense applications, such as missile systems and submarines, where ELMT already supplies materials.

How outlets are covering it

Mining.com highlights the financial structure of the deal, noting that Blue Moon retains full ownership of the mine and mill while holding a 20% interest in the APT operation. Analysts from Haywood Securities and Scotiabank view the deal as a major validation event that de-risks the project and reduces market-access risks. The US Department of War frames the investment as a critical step to empower the American warfighter and strengthen industrial might, emphasizing the need to reduce reliance on China, which dominates global tungsten production. While Mining.com details the specific allocations to US manufacturing facilities in Maine, Michigan, and Ohio, the DoW release focuses on the broader strategic goal of securing a resilient supply chain for defense and economic stability.

Why it matters

Securing domestic tungsten supplies is vital for US defense capabilities, as the metal is essential for advanced weapons systems and aerospace applications. Reducing dependence on China mitigates geopolitical risks and ensures a stable supply for critical industries, supporting both national security and economic resilience.

What to watch

ELMT plans to launch a new division, Elmet Refining and Trading (ERT), to coordinate sourcing and refining across a diversified supply chain, including partnerships in Australia and Spain. The company aims to establish long-term access to tungsten for the US and allied nations, with production timelines set for 2027 and 2028. The $2 billion contract with the Defense Logistics Agency will provide a framework for sustained supply through 2033, contingent on the expansion of mining and processing capacity.