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Pentagon Invests $450M for Elmet Tungsten Expansion Stake

By Drooid · Sep 15, 2026, 3:01 PM UTC · How we work

Summary

DoD Invests in Tungsten

The U.S. Department of Defense is taking a 19.9% stake in Elmet Group to expand tungsten processing.
The investment includes $450 million redeemable preferred equity.
Elmet will spend over $165 million upgrading plants in Maine, Michigan and Ohio.
It will build North America’s only independent ammonium paratungstate facility.
China supplies roughly 85% of tungsten and 40% of molybdenum, prompting the U.S. effort.

Summary

Blue Moon Issues Units

Blue Moon Metals' shares rose 6.5% to C$8.08 after the Pentagon investment was disclosed.
Elmet will hold 70% of the Springer APT venture, while Blue Moon and EQ Resources receive 20% and 10%.
The deal includes a $50 million tungsten concentrate prepayment facility split into two $25 million tranches.
Blue Moon will issue 3.5 million units at C$10 each, a 31.8% premium to its closing price.

History

Historical Context

The Defense Production Act, passed in 1950, built aluminum and titanium capacity and funded energy projects in the 1960s-70s. Starting in the 1980s the DOD used Title III to seed mining of rare-earth and strategic minerals, a pattern echoed today by the DoD’s 19.9% stake in Elmet Group and a $50 million prepayment to Blue Moon Metals to curb reliance on China’s 85% tungsten supply.

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DoD Invests in Tungsten

The U.S. Department of Defense is taking a 19.9% stake in Elmet Group to expand tungsten processing.
The investment includes $450 million redeemable preferred equity.
Elmet will spend over $165 million upgrading plants in Maine, Michigan and Ohio.
It will build North America’s only independent ammonium paratungstate facility.
China supplies roughly 85% of tungsten and 40% of molybdenum, prompting the U.S. effort.

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