Full Breakdown
Pentagon Invests $450 Million in Elmet Group to Bolster U.S. Tungsten Supply
By Drooid · · How we work
Core Investment and Objectives
The U.S. Department of War has committed $450 million in redeemable preferred equity to The Elmet Group (NASDAQ: ELMT). In return, the government will receive up to a 19.9 % stake in Elmet’s common stock, the right to name one independent director and one non-voting board observer, and preferred-equity warrants. About $165 million will modernize Elmet facilities in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio. Roughly $150 million will fund a joint-venture with Blue Moon Metals and EQ Resources to restart the Springer Tungsten Complex in Nevada and build North America’s only independent ammonium paratungstate (APT) plant. The investment aims to secure long-term tungsten and molybdenum supplies for over 100 defense programs.
Background & Context
Tungsten and molybdenum are critical minerals for missiles, munitions, aircraft and submarines. The Department of War says China controls about 85 % of global tungsten supply and 40 % of molybdenum; USGS data puts the tungsten share at roughly 83 % in 2023. Chinese export restrictions in early 2025 and an eight-fold price surge prompted the U.S. to take equity stakes in domestic producers, a strategy expanded since the Trump administration.
Data & Statistics
- Investment: $450 million (redeemable preferred equity)
- Equity stake: up to 19.9 % of Elmet shares
- Board rights: one independent director, one non-voting observer
- Facility funding: > $165 million for plants in Maine, Michigan, Ohio
- Springer complex funding: ? $150 million (includes $50 million pre-payment facility, $25 million equity subscription, $75 million JV capital)
- JV ownership: Elmet 70 %, Blue Moon 20 %, EQ 10 % (Elmet to operate the APT plant)
- DLA contract: IDIQ up to $2 billion, minimum spend $150 million, through August 2031
- Jobs: about 1,200 downstream positions plus additional high-tech roles in Michigan, Maine and Nevada
- Program coverage: Patriot, Javelin, AEGIS, Trident II, THAAD, F-35, Next Generation Interceptor, Precision Strike Missile, Virginia- and Columbia-class submarines
Official Statements & Responses
Peter V. George K. framed the APT facility as “the only independent” plant of its kind in North America, addressing a processing bottleneck for the defense industrial base.
Verbatim Quotes
- “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,” — Peter Anania, CEO and chairman
- “The Economic Defense Unit was created to identify critical industrial chokepoints before adversaries can exploit them and before they become battlefield risk,” — George K. Kollitides II
Timeline of Key Milestones
- Mid-September 2026 – Department of War announces the $450 million investment.
- August 20 2026 – Nevada bonding approval clears construction at the Springer complex.
- September 11 (scheduled) – Binding letter agreement outlines the $150 million-plus investment structure.
- Q4 2027 – Targeted restart of mining and milling at Springer.
- H2 2028 – Planned start-up of the APT processing plant.
What’s Next
The initial $200 million drawdown will close soon, with later tranches tied to construction milestones at Springer. The first $25 million pre-payment tranche is due within 45 days; a second tranche follows milestone completion. Elmet will launch Elmet Refining & Trading to coordinate global tungsten sourcing, including partnerships in Australia and Spain. The Department of War will monitor capacity expansions and DLA contract compliance, adjusting future drawdowns as needed.
*The article synthesizes information from multiple news reports and official releases, presenting the factual core of the Pentagon’s $450 million equity investment in Elmet Group and its implications for U.S. critical-material security.*