The Elmet Group Secures Long-Term Tungsten Offtake Agreement with Tungsten West’s Hemerdon Mine

The new Hemerdon offtake deal gives Elmet a large, government-backed tungsten source expected to exceed $230 million in annual value at current prices.

Rhea-AI Summary

The Elmet Group (ELMT) has signed a long-term tungsten concentrate offtake agreement with Tungsten West’s Hemerdon Mine in England, effective with current processing operations and ramp-up plans.

ELMT expects to take more than 1,000 metric tonnes per year of tungsten concentrate (WO₃ equivalent), which represents over $230 million in annual offtake value at current APT tungsten prices, with both parties aiming to increase volumes over time. Concentrate will be refined through ELMT’s allied network into APT and other intermediates, then supplied to ELMT manufacturing sites in the U.S. and Germany, subject to closing of the previously announced OSRAM asset purchase. The agreement is managed via Elmet Refining & Trading, created in connection with the $450 million U.S. Department of War investment, and aligns with the UK’s £71 million strategic investment in Tungsten West to build resilient allied tungsten supply chains.

Positive

• Offtake exceeds 1,000 tonnes/year of tungsten concentrate with potential volume growth
• Deal represents over $230 million in annual offtake value at current APT prices
• Backed by $450 million U.S. Department of War investment into ELMT
• Supported by UK National Wealth Fund’s £71 million strategic investment in Tungsten West
• Hemerdon targeting full-scale production by end of Q1 2027, supporting long-term supply
• Offtake centralized in new Elmet Refining & Trading division to coordinate sourcing and delivery

Negative

• Supply volumes depend on Hemerdon successfully ramping to full-scale production by end of Q1 2027
• Use of German plant is conditional on closing the OSRAM asset purchase agreement
• Standalone Investor Business Update scheduled for September 24, 2026 has been postponed

News Explained

The signed supply arrangement does not yet mean current deliveries: Hemerdon is ramping toward full-scale production by the end of the first quarter of 2027.

The signed arrangement does not establish current deliveries: Hemerdon processing is underway and ramping, while full-scale production is targeted by the end of the first quarter of 2027; delivery is also conditioned on supplies being available.

The company temporarily postponed its standalone Investor Business Update, previously scheduled for September 24, 2026, and said it will provide further scheduling information.

Key Figures

Annual offtake value: More than $230 million annually Annual tungsten concentrate: More than 1,000 metric tonnes per year UK strategic investment: £71 million +2 more

Annual offtake value

More than $230 million annually

At current APT tungsten prices

Annual tungsten concentrate

More than 1,000 metric tonnes per year

WO₃ equivalent from Hemerdon

UK strategic investment

£71 million

National Wealth Fund investment in Tungsten West

Full-scale production target

End of Q1 2027

Hemerdon Mine ramp-up target

Postponed investor update

September 24, 2026

Previously scheduled standalone Investor Business Update

Historical Context

1 past event · Latest: Sep 14

1 event

1. Sep 14

   Tungsten investment

   24h Move

   +32.8%

   Binding Springer investment funded an APT plant and tungsten prepayment facility.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

offtake agreement, tungsten concentrate, wo₃ equivalent, ammonium paratungstate

4 terms

offtake agreement financial

"signed a long-term tungsten concentrate offtake agreement with Tungsten West plc"

A contract in which a buyer commits to purchase a set portion or percentage of a producer’s future output—such as minerals, energy, agricultural goods, or manufactured products—often over a multi‑year period. It matters to investors because it creates predictable sales and cash flow, reduces the risk of unsold inventory, and can make projects easier to finance; think of it like pre‑selling future harvests or securing long‑term customers before production begins.

tungsten concentrate technical

"long-term tungsten concentrate offtake agreement with Tungsten West plc"

Tungsten concentrate is the crushed and concentrated ore product recovered from mining that contains a high percentage of the metal tungsten; it is the bulk raw material sold to metal producers who turn it into usable tungsten metal and chemicals. It matters to investors because concentrate volumes, quality and sale prices drive revenue for miners and affect supply and price risk for manufacturers that rely on tungsten for hard metals, cutting tools and specialized components—think of it as the grain shipment that determines a bakery’s costs and output.

wo₃ equivalent technical

"1,000 metric tonnes per year of tungsten concentrate (WO₃ equivalent)"

A WO3 equivalent is a way of reporting the amount of tungsten in an ore or concentrate by expressing the tungsten content as if it were present entirely as tungsten trioxide (WO3). It translates measured tungsten into a common chemical form so different assay methods and products can be compared, much like converting various currencies into dollars for easy comparison. Investors use it to understand and compare the grade and potential metal content of tungsten-bearing material.

ammonium paratungstate technical

"Material will be converted into ammonium paratungstate (“APT”)"

Ammonium paratungstate (APT) is a dense, white powder that serves as the concentrated chemical feedstock used to produce tungsten metal and tungsten-based products. Think of it as a syrup concentrate that manufacturers refine into final goods like heavy-duty metal parts, lightbulb filaments, and specialty coatings. Investors watch APT because its production volumes, quality and price act as an early signal of tungsten supply, manufacturing costs and margin pressure across mining, industrial and defense-related companies.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Agreement expected to expand and strengthen tungsten supply chains across the U.S., UK, and allied nations with one of the world’s largest tungsten deposits

Further advances the objectives of the United States Department of War’s $450 million committed investment announced September 14, 2026

Represents more than $230 million annually in offtake at current APT tungsten prices

PORTLAND, Maine, Sept. 22, 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 that it has signed a long-term tungsten concentrate offtake agreement with Tungsten West plc (AIM: TUN) (“Tungsten West”) covering production from the Hemerdon Mine in Devon, England (“Hemerdon”), one of the largest tungsten deposits in the world.

Under the terms of the agreement, ELMT expects to take more than 1,000 metric tonnes per year of tungsten concentrate (WO₃ equivalent) from Hemerdon, with both parties aiming to increase production volumes over time. Material will be converted into ammonium paratungstate (“APT”) and downstream tungsten intermediates through ELMT’s allied refining network, followed by delivery into ELMT’s U.S. manufacturing operations in Maine, Michigan, Ohio, and ELMT’s Schwabmünchen, Germany plant, pending the closing of the previously announced asset purchase agreement with OSRAM GmbH, if supplies exist. Ultimately, this U.S.-UK partnership is expected to support customers across aerospace, defense, energy, medical, industrial, and semiconductor markets.

The UK government's strategic investment in Tungsten West, announced on August 25, 2026, complements the U.S. Department of War's (“DoW”) landmark investment in ELMT announced on September 14, 2026, underscoring the importance both governments place on building resilient, allied supply chains for critical materials. The offtake will be managed through Elmet Refining & Trading (“ERT”), the Company’s new division established in connection with the DoW investment to secure long-term access to critical materials and coordinate sourcing, conversion, and delivery across ELMT's supply relationships.

“Our agreement with Tungsten West further builds upon the landmark investment we received from the Department of War and advances our strategy to build a resilient critical materials supply chain,” said The Elmet Group CEO and Chairman Peter V. Anania. “The Elmet Group and Tungsten West are firmly aligned in our commitment to securing domestic and allied production, supply, and consistency for customers across the full breadth of critical materials end markets.”

“This partnership arrives at a pivotal moment in Tungsten West’s history, with processing operations underway and continuing to ramp at Hemerdon,” said Tungsten West CEO Jeffery Court. “In addition to supporting the creation of hundreds of jobs in the UK, we believe our offtake agreement with ELMT solidifies our position as a leading Western producer of tungsten and enables us to contribute to the creation of a resilient tungsten supply chain for the U.S., UK and our other allies.”

Following the £71 million strategic investment from the UK Government's National Wealth Fund, Tungsten West has initiated processing efforts at Hemerdon. The mine is targeting ramp-up to full-scale production by the end of the first quarter of 2027.

ELMT and Tungsten West have been engaged in discussions for more than a year to identify the best approach for combining production from Hemerdon with the conversion relationships, customer base, and North American platform at ELMT. The two companies are closely aligned on the strategic objective of maximizing the volume of allied-sourced tungsten available to U.S. and UK industries and are committed to maintaining a long-term collaborative effort as Hemerdon ramps up production later this year. The partnership is designed to serve customers on both sides of the Atlantic, supporting a range of strategically important U.S. and UK industries with a secure, allied source of tungsten.

This announcement follows the landmark investment ELMT received from the DoW, announced on September 14, 2026, allowing the Company to further enhance its standing as a leading provider of strategically important raw materials.

“This announcement builds on our partnership with the United States, working together in areas like mining and processing, helping crucial sectors like defense and clean energy in both countries get the minerals they need,” said UK Minister for Reindustrialization Blair McDougall. “This is our Critical Minerals Strategy in action – forging ambitious international partnerships that strengthen our economic security and help build more resilient, sustainable critical minerals supply chains.”

Investor Business Update
As a result of these recent developments, ELMT management will temporarily postpone its standalone Investor Business Update, previously announced for September 24, 2026. The Company will continue to disclose additional updates, as appropriate, and intends to provide further scheduling information in the near future.

About Tungsten West
Tungsten West plc is a UK mining company focused on restarting production at the Hemerdon tungsten and tin mine in South Devon, England. Hemerdon is one of the largest tungsten resources in the world and benefits from substantial existing infrastructure, including a partially developed open pit, processing plant, and integrated mine waste facility.

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 number of metric tonnes of tungsten concentrate ELMT expects to take from Hemerdon and Hemerdon’s ability to produce such amount; (ii) the conversion of the tungsten concentrate; (iii) the ability of the partnership to support customers across aerospace, defense, energy, medical, industrial, and semiconductor markets; (iv) the commitment and ability of ELMT and Tungsten West to secure domestic and allied production, supply, and consistency for customers across the full breadth of critical end markets; (v) the expected timing of the ramp-up to production for the Hemerdon mine; (vi) the creation of jobs in the United Kingdom; and (vii) 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 tungsten from Hemerdon be processed and delivered to The Elmet Group’s operations?

Tungsten concentrate from Hemerdon will be converted through ELMT’s allied refining network into ammonium paratungstate (APT) and other tungsten intermediates. These materials are then expected to be delivered into ELMT’s U.S. manufacturing operations in Maine, Michigan, and Ohio, and to its Schwabmünchen, Germany plant, if the previously announced OSRAM asset purchase closes and supplies exist.

What role does Elmet Refining & Trading (ERT) play in this offtake agreement?

Elmet Refining & Trading (ERT), a new division established in connection with the U.S. Department of War investment, will manage the offtake. ERT is responsible for securing long-term access to critical materials and coordinating sourcing, conversion, and delivery of tungsten across ELMT’s supply relationships, including the Hemerdon volumes.

What is the production timeline for Tungsten West’s Hemerdon Mine under this partnership?

Following the UK Government National Wealth Fund’s £71 million strategic investment, Tungsten West has initiated processing at Hemerdon and is targeting a ramp-up to full-scale production by the end of the first quarter of 2027. ELMT and Tungsten West state they will maintain a long-term collaborative effort as Hemerdon production ramps later this year.

Why did The Elmet Group postpone its standalone Investor Business Update?

As a result of the recent developments, including the new offtake agreement and related strategic initiatives, ELMT management will temporarily postpone its standalone Investor Business Update that had been announced for September 24, 2026. The company intends to provide updated scheduling information and further disclosures in the near future.

Which industries does The Elmet Group expect this partnership to support?

The U.S.–UK partnership around Hemerdon tungsten is expected to support customers across aerospace, defense, energy, medical, industrial, and semiconductor markets by providing a secure, allied source of tungsten for these strategically important sectors.