Department of War Makes Landmark $450 Million Committed Investment in The Elmet Group to Secure America’s Tungsten Supply Chain
A $450 million DoW investment and an IDIQ contract up to $2 billion position ELMT as a key Western tungsten supplier.
Rhea-AI Summary
The Elmet Group (ELMT) announced a $450 million committed investment from the U.S. Department of War to expand tungsten mining, processing, and manufacturing capacity.
The funding includes more than $165 million for U.S. facilities in Maine, Michigan, and Ohio and about $150 million for a majority-owned joint venture at Blue Moon’s Springer Tungsten Complex in Nevada, alongside EQ Resources. The Department of War will receive redeemable preferred equity, warrants for up to 19.9% of ELMT’s post-transaction common stock, and rights to appoint one independent director and one non-voting observer to the Board. ELMT will also launch a new Elmet Refining & Trading division and pursue mining and processing investments in the United States, Australia, and Spain.
Separately, subsidiary Elmet Technologies received an IDIQ contract from the Defense Logistics Agency for up to $2 billion to supply tungsten materials to rebuild the U.S. National Defense Stockpile, with a guaranteed minimum of $150 million through at least August 2031.
Positive
- $450 million committed investment from the Department of War to expand tungsten capacity
- Planned U.S. facility upgrades exceed $165 million across Maine, Michigan and Ohio
- About $150 million allocated to majority-owned JV at Springer Tungsten Complex in Nevada
- DoW warrants for up to 19.9% equity align government stake with ELMT’s growth
- New Elmet Refining & Trading division to coordinate global tungsten sourcing and refining
- DLA IDIQ contract ceiling up to $2 billion with a guaranteed $150 million minimum through 2031–2033
Negative
- Issuance of redeemable preferred equity and warrants up to 19.9% implies potential shareholder dilution
- Restricted entity compliance plan may limit ownership by certain investors acquiring ≥10% of common stock
News Explained
ELMT gains committed funding with potential common-stock dilution, while initial cash funding and stockpile deliveries remain staged.
ELMT announced an agreement for a
The separate stockpile contract has a ceiling of up to
For scale, ELMT reported
Key resolution points are the closing that triggers the initial drawdown and the start of DLA deliveries after additional supply is available; the stockpile contract's base ordering period runs through
Sources and calculations
- Elmet Group press release (2026-09-14)
- Elmet Group latest-quarter fundamentals (2026Q3)
- Available liquidity against the last reported quarterly operating outflow, in days at that rate $66,122,000 / ($14,493,000 / 91) = 415.2 days
Details
Market reaction after tungsten investment agreement: ELMT +30.23%
Following this news, ELMT has gained 30.23%, reflecting a significant positive market reaction. Argus tracked a peak move of +19.4% during the session. Our momentum scanner has triggered 38 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $21.08. Trading volume is exceptionally heavy at 460.5x the average, suggesting very strong buying interest.
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Key Figures
- Committed investment
- $450 million
- Department of War investment
- U.S. operations investment
- more than $165 million
- Maine, Michigan, and Ohio facilities
- Initial drawdown
- $200 million
- At closing
- Warrant coverage
- up to 19.9%
- ELMT common stock on a post-transaction basis
- Springer Tungsten Complex allocation
- approximately $150 million
- Blue Moon joint venture and APT conversion capacity
- Contract ceiling
- up to $2 billion
- National Defense Stockpile IDIQ contract
- Guaranteed funded commitment
- $150 million
- National Defense Stockpile agreement
- Base ordering period
- five years
- Through August 30, 2031, with a two-year extension option
Historical Context
-
Acquisition expanded European tungsten and molybdenum manufacturing footprint through Schwabmünchen operations.
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Equity purchase deepened tungsten supply collaboration and five-year offtake agreement with EQ Resources.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
redeemable preferred equity financial
indefinite delivery/indefinite quantity regulatory
ammonium paratungstate technical
offtake agreements financial
warrants financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Investment expected to enhance domestic manufacturing capacity and reduce foreign dependence on critical minerals
Anticipated to expand ELMT’s resilient global tungsten mining network and processing capabilities
ELMT secures up to
Company to host investor call today at 9 a.m. ET
PORTLAND, Maine, Sept. 14, 2026 (GLOBE NEWSWIRE) -- The Elmet Group Co. (NASDAQ: ELMT) (“ELMT” or the “Company”), a U.S.-based provider of critical materials, precision-engineered components, and advanced high-energy systems, today announced a
The investment will be used to increase domestic tungsten manufacturing, secure long-term access to critical raw materials, and strengthen mining and processing capacity. This includes an anticipated more than
The funding will also support ELMT's investments in mining and processing operations in the United States, Australia, and Spain, helping to establish a resilient supply chain. To support these efforts, ELMT will launch Elmet Refining & Trading (“ERT”), a new division responsible for coordinating sourcing, processing, and material delivery across the Company's expanding global network.
“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,” said The Elmet Group CEO and Chairman Peter V. Anania. “The Elmet Group's vertically integrated production capabilities, sourcing strategy, and commitment to expanding capacity positions our company to play a meaningful role in strengthening supply chains. We are honored by the Administration's and DoW’s confidence in The Elmet Group and look forward to using this investment to expand capacity, strengthen supply security, and support our customers' growing needs. Following our successful IPO earlier this year and recent expansion into Europe, we believe this investment will further accelerate our growth and reinforces The Elmet Group's position as a leading Western supplier of tungsten products and other advanced materials and components.”
Tungsten is a strategically important metal valued for its ability to withstand extreme heat, pressure, and wear, making it essential to national defense and a wide range of advanced industrial applications. Its unique properties make it irreplaceable in certain high-performance components used across aerospace, energy, semiconductor, medical, and industrial markets, underscoring the need for reliable and secure sources of supply. ELMT is a supplier to critical U.S. defense programs, including Patriot, Javelin, AEGIS, Trident II, and THAAD, as well as Virginia- and Columbia-class submarines, and is the only U.S.-owned, vertically-integrated producer of tungsten servicing the full breadth of critical end markets.
The DoW's investment in ELMT is an initiative launched under its newly established Economic Defense Unit (“EDU”), which was created earlier this year to coordinate defense-related economic initiatives aimed at accelerating U.S. defense industrial base production. This is part of the U.S. government's broader effort to build resilient domestic and allied supply chains for the critical minerals, materials, and components.
“The Department is committed to empowering the American warfighter and workforce,” said George K. Kollitides II, Director of the Economic Defense Unit. “We are proud to invest in Elmet Technologies to bring tungsten-processing capacity home to the United States and strengthen the industrial might that powers and protects our way of life.”
Transaction Overview
Under terms of the agreement, the DoW has agreed to invest
To implement the Company’s obligations under the agreements, the Company entered into a restricted entity compliance plan with Continental Stock Transfer & Trust Company, as rights agent (the “Plan”), designed to deter a Restricted Entity (as defined in the Plan), or a group including a Restricted Entity, from acquiring beneficial ownership of
Together, the initiatives funded by the investment are designed to expand domestic manufacturing, strengthen global mining and processing capacity. ELMT will be involved with securing a, vertically integrated tungsten supply chain serving critical defense and commercial end markets. Specifically, ELMT plans to:
- Invest more than
$165 million in its U.S. manufacturing facilities in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio to expand production capacity, increase tungsten output and modernize infrastructure supporting critical defense, aerospace, and industrial applications, including Patriot, Phalanx, JDAM, F-35, and rocket programs. - Allocate approximately
$150 million to Blue Moon’s Springer Tungsten Complex in Imlay, Nevada, forming and operating a majority-owned joint venture with Blue Moon Metals and EQ Resources of Australia to restart and expand ammonium paratungstate (“APT”) conversion capacity at the facility. - Establish Elmet Refining and Trading (“ERT”), a new division that will coordinate sourcing, refining, and delivery activities across a diversified supply chain, helping ensure reliable long-term access to tungsten for the U.S. and its Allies.
- Support strategic mining, processing, and commercial partnerships in the U.S. and allied countries, including investments in the United States, Australia, and Spain, creating a more resilient supply chain for critical materials independent of China.
- Secure long-term tungsten feedstock and processing capacity through strategic investments and offtake agreements, strengthening access to mined material while supporting the development of additional Western refining and conversion capabilities.
Tungsten Resiliency Framework: Up to
Separately, Elmet Technologies, a subsidiary of ELMT, has been awarded an indefinite delivery/indefinite quantity (“IDIQ”) contract by the Defense Logistics Agency (“DLA”) to support the rebuilding of the U.S. National Defense Stockpile and strengthen the long-term resiliency of the nation's tungsten supply chain. The contract has a ceiling value of up to
Importantly, ELMT does not intend to begin delivering material into the National Defense Stockpile until sufficient incremental supply becomes available through the mining investments, offtake agreements, and processing capacity expansions announced today, ensuring stockpile replenishment does not come at the expense of existing American manufacturers. Deliveries will be phased in coordination with DLA as new production capacity comes online from ELMT's approved supplier network, including Blue Moon Metals' Springer Mine in Nevada and EQ Resources' Mt. Carbine Mine in Australia and Barruecopardo Mine in Spain.
The contract includes a five-year base ordering period through August 30, 2031, with a two-year extension option through August 30, 2033, providing a long-term framework to strengthen domestic and allied sources of a critical material essential to U.S. defense and industrial capabilities.
Investor Call
ELMT will host a conference call for investors to discuss the investment today at 9:00 a.m. ET. Details can be found at https://event.choruscall.com/mediaframe/webcast.html?webcastid=8mKspJRt. A live webcast of the investor call, as well as related presentation materials, will be available through the Investor Relations section of the company’s website (https://investors.theelmetgroup.com/). A replay of the webcast will be available for 30 days following the presentation.
Advisors
Goldman Sachs & Co. LLC and Cantor Fitzgerald & Co. are acting as financial advisors, Akin Gump Strauss Hauer & Feld LLP and Ellenoff Grossman & Schole LLP are acting as legal advisors, and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to ELMT.
About The Elmet Group
The Elmet Group is a U.S.-based provider of critical materials, precision-engineered components, and advanced high-energy systems for the Aerospace, Defense and Government, Industrial, Medical, Semiconductor and Electronics, and Energy industries. The Company operates through three divisions: Critical Materials Components (CMC), Engineered Microwave Products (EMP), and Elmet Refining & Trading (ERT), leveraging materials science and precision engineering expertise to deliver high-performance solutions. The Elmet Group is dedicated to strengthening domestic manufacturing capabilities to support the U.S. and its Allies’ needs in both critical materials and advanced high-power microwave systems.
Media Contact
media@theelmetgroup.com
Investor Contact
Tom Colton and Greg Bradbury
Gateway Group, Inc.
ELMT@gateway-grp.com
949-574-3860
Forward-looking statements disclaimer
The information in this press release includes forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These statements generally relate to future events or our future financial or operating performance and include statements regarding (i) the ultimate size of (a) the DoW’s investment, (b) ELMT’s investments into modernizing and expanding its existing facilities, (c) ELMT’s investment in the Blue Moon Springer Tungsten Complex and (d) ELMT’s investments in creating a network of strategic partnerships to diversify Tungsten supply; (ii) Elmet’s ability to: (a) establish a secure, diversified and vertically integrated Tungsten supply chain while expanding domestic manufacturing and strengthening allied sources of critical minerals, (b) expand relationships with key supply-chain partners, (c) secure long-term access to critical raw materials, processing and refining assets, (d) modernize and expand its existing critical infrastructure facilities, (e) effectively meet demand for its products and (f) restart production at the Blue Moon Springer Tungsten Complex on the anticipated timeline and at the anticipated cost; (iii) the creation of ERT enhancing ELMT’s control over feedstock sourcing, processing capacity, material flows and support to customers as well as strengthening its competitive position in strategic end markets; (iv) ELMT’s ability to successfully navigate turbulent raw materials markets; (viii) ELMT’s ability to successfully perform under, and realize the anticipated benefits of, its indefinite delivery/indefinite quantity contract with the Defense Logistics Agency; (ix) ELMT’s ability to realize the anticipated benefits of partnerships, including with Blue Moon Metals and EQ resources as well as the successful operation of joint ventures with such parties; and (x) ELMT’s future performance, expected outcomes and strategic initiatives.
When used in this press release, words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “seek,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” and “will,” the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Elmet’s Registration Statement on Form S-1, as amended (File No. 333-294725) and subsequent filings Elmet makes with the Securities and Exchange Commission. Elmet undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How will the Department of War’s $450 million investment be structured?
The Department of War will fund an initial $200 million drawdown at closing, followed by additional drawdowns. In return, it will receive redeemable preferred equity, warrants representing up to 19.9% of ELMT’s post-transaction common stock, and the right to appoint one independent director and one non-voting Board observer.
What is ELMT planning for its U.S. manufacturing facilities with this funding?
ELMT plans to invest more than $165 million in facilities in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio. The company expects to expand production capacity, increase tungsten output, and modernize infrastructure that supports defense, aerospace, and industrial applications, including programs such as Patriot, Phalanx, JDAM, F-35, and rocket systems.
What is the role of the Blue Moon Springer Tungsten Complex in Nevada?
ELMT intends to allocate approximately $150 million to Blue Moon’s Springer Tungsten Complex in Imlay, Nevada. It plans to form and operate a majority-owned joint venture with Blue Moon Metals and EQ Resources to restart and expand ammonium paratungstate (APT) conversion capacity at the facility.
What is Elmet Refining & Trading (ERT) and why is it being created?
Elmet Refining & Trading (ERT) is a new division that will coordinate sourcing, refining, and delivery activities across ELMT’s diversified supply chain. The company said ERT is intended to help ensure reliable long-term access to tungsten for the United States and its allies by integrating mining, processing, and material delivery.
What are the key terms of the Defense Logistics Agency tungsten supply contract?
Elmet Technologies has been awarded an IDIQ contract with a ceiling of up to $2 billion to supply tungsten ores, concentrates, and sodium tungstate to DLA Strategic Materials. The contract includes a guaranteed funded commitment of $150 million, a five-year base ordering period through August 30, 2031, and a two-year extension option through August 30, 2033.
When will ELMT begin delivering tungsten into the National Defense Stockpile?
ELMT does not intend to deliver material into the National Defense Stockpile until sufficient incremental supply becomes available from mining investments, offtake agreements, and processing expansions announced in this transaction. Deliveries will be phased with DLA as new capacity comes online from ELMT’s approved supplier network, including Blue Moon Metals’ Springer Mine in Nevada and EQ Resources’ Mt. Carbine and Barruecopardo mines in Australia and Spain.