Dive Brief:
- The Elmet Group has reached two deals with the Department of Defense, worth a total value of $2.45 billion, to strengthen the domestic tungsten metal supply chain, the company announced during a business update call Monday.
- The company’s subsidiary, Elmet Technologies, was awarded on Sept. 11 a five-year, $2 billion indefinite delivery/indefinite quantity contract from the Defense Logistics Agency to support the U.S. National Defense Stockpile, said CEO and Chairman Peter Anania.
- In a separate agreement, DOD committed to purchase $450 million in Class A preferred stock through its Economic Defense Unit program, according to a securities filing. The money from the sale will expand and upgrade Elmet’s tungsten mining, processing, and manufacturing capabilities, according to a DOD press release.
Dive Insight:
Elmet’s agreements with the Pentagon come as the Commerce Department’s Bureau of Industry and Security finalized a rule restricting the export of black mass and tungsten waste and scrap without a license. The rule is effective from Aug. 27, 2026, to Aug. 27, 2027.
Out of all the metals, tungsten has the highest melting points, making it a critical mineral for various industries such as aerospace and defense, according to Elmet. The critical metal is used to make components utilized in more than 100 DOD programs, such as the F-35 fighter jet, Patriot Advanced Capability and Precision Strike missile systems, according to the company’s presentation.
The IDIQ contract includes a guaranteed $150 million minimum commitment, which will cover the tungsten concentrates and sodium tungstate supply to DLA’s Strategic Materials office, Anania said.
“We believe this framework creates a long-term pathway for demand” within Elmet’s refining and trading segment, Anania said. It also “strengthens our government relationship, and can help backstop ERT refining production.”
The DLA administers and procures critical minerals for the National Defense Stockpile. Elmet’s goal is to support DLA in rebuilding the stockpile without disrupting U.S. manufacturers or hindering its current customers, Anania said.
However, deliveries to the stockpile will not begin until “significant incremental” supply becomes available through the announced mining investment agreements and processing capacity expansions, he added.
The company aims to use $165 million of the DOD’s $450 million investment to modernize and expand its U.S. manufacturing capacity.
Elmet also plans to allocate some of the money to upgrade and restart the Springer Tungsten Complex in Imlay, Nevada. Elmet, along with Blue Moon Metals and EQ Resources Limited, signed an agreement on Sept. 11 to invest between $150 million and $175 Million toward that tungsten site, which consists of open pit and underground mines and a mill that produces 1,200 tons per day.
The site also has an ammonium paratungstate plant with the capability to produce up to 4,000 tons per day. The three companies will also form a joint venture to operate the APT plant, which Blue Moon will operate.
