Elmet Group receives $2 billion Pentagon contract for tungsten supply

The U.S. Department of Defense has awarded a contract worth approximately $2 billion to a subsidiary of Elmet Group to rebuild the National Defense Stockpile and strengthen the domestic tungsten supply chain. The agreement includes a guaranteed disbursement of $150 million for the supply of ore, concentrates, and sodium tungstate for strategic programs.

In addition to the contract, Elmet Group is raising approximately $450 million from the Pentagon through the issuance of preferred stock and warrants. These funds are intended to finance the expansion of production facilities in Maine, Michigan, and Ohio. Elmet Group, a vertically integrated manufacturer of pure tungsten and molybdenum products, specializes in precision components for aerospace, semiconductors, medical, and defense sectors.

Masan High-Tech Materials, one of the largest tungsten producers outside of China, is noted as a key partner in Elmet Group’s global supply chain. This move by the U.S. government comes as the country seeks to reduce dependence on external markets amid global tightening of mineral trade controls.