US Invests $450 Million in Elmet to Expand Tungsten Supply Chain
en.Wedoany.com Reported - On September 14, the U.S. Department of Defense reached a $450 million investment arrangement with The Elmet Group to expand domestic tungsten mining, processing, and manufacturing capacity in the United States and to strengthen raw material cooperation with allied markets such as Australia and Spain. Of the total, $200 million will be disbursed upon closing of the transaction, with subsequent funding invested in tranches based on project progress. Elmet plans to direct the funds toward its U.S. manufacturing bases, the Springer tungsten mine in Nevada, and APT processing facilities, and to establish a tungsten supply chain covering mining, refining, trading, and downstream processing.
Under the funding arrangement, Elmet is expected to invest more than $165 million in three manufacturing bases located in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio, to expand production capacity for tungsten and other high-performance materials and to upgrade related infrastructure. These plants currently manufacture tungsten, molybdenum, and precision material components, and the expansion will further enhance domestic U.S. midstream and downstream tungsten material supply capacity.
Another key investment of approximately $150 million will be directed to the Springer Tungsten Complex in Nevada. Elmet plans to form a joint venture platform with Blue Moon Metals and Australia's EQ Resources, with Elmet holding a controlling stake, to restart and expand local ammonium paratungstate (APT) conversion capacity. Springer is a brownfield tungsten project, with a current target of resuming production by late 2027.
In addition to U.S. projects, Elmet also plans to continue investing in tungsten mining and processing projects in Australia and Spain, and to secure tungsten concentrate sources through long-term offtake agreements. The company will establish a new Elmet Refining & Trading division to centrally manage raw material procurement, refining, and delivery, forming a vertically integrated system from mine feedstock and APT conversion to high-end tungsten material manufacturing.
In parallel with the $450 million investment, Elmet Technologies also secured a long-term tungsten product supply contract from the U.S. Defense Logistics Agency, with a maximum contract value of $2 billion, of which a minimum funding commitment of $150 million has been confirmed. The supply scope includes tungsten ore, tungsten concentrate, and sodium tungstate. The base ordering period of the contract runs through August 30, 2031, with a two-year extension option that could extend it to 2033.
Elmet stated that deliveries for the national stockpile will not begin immediately, but will be phased in as supply capacity comes online at the Springer mine, Australia's Mt Carbine mine, Spain's Barruecopardo mine, and other new supply sources, in order to avoid stockpile procurement crowding out raw material supply for existing U.S. manufacturers.
