Elmet wins $450m DoW deal, $2bn DLA contract

The Elmet Group announced a $450 million committed investment from the United States Department of War to accelerate its U.S. manufacturing capabilities and expand agreements with key supply‑chain partners. The investment will be funded through an initial $200 million drawdown at closing, followed by additional drawdowns over time. As consideration, the Department of War will receive redeemable preferred equity, warrants representing up to 19.9% of Elmet’s common stock on a post‑transaction basis, and the right to appoint one independent director to the company’s board along with one non‑voting board observer.

The Department of War described this investment as part of its Economic Defense Unit initiative to accelerate U.S. defense industrial‑base production. Elmet stated that the capital will support both manufacturing expansion and deeper collaboration with supply‑chain partners focused on tungsten and related materials.

Elmet said it expects to direct more than $165 million of the Department of War investment toward modernization and expansion of its U.S. manufacturing facilities in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio. These projects are intended to increase domestic production capacity and upgrade existing operations to support rising defense and industrial demand for tungsten products.

The company indicated that these facility upgrades form a core part of its strategy to strengthen the U.S. and allied tungsten supply chain. The expanded plants are expected to work alongside new upstream and processing initiatives being developed in partnership with mining and materials companies.

Approximately $150 million of the Department of War investment is planned for the Springer Tungsten Complex in Imlay, Nevada. Elmet intends 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.

Blue Moon, The Elmet Group and EQ Resources said they signed a binding letter agreement dated September 11, 2026, covering strategic transactions for the Springer Tungsten Complex. The parties described a US$150–175 million investment into the complex, which remains subject to completion of due diligence and required approvals.

To coordinate activity across its expanding tungsten platform, Elmet will launch a new division called Elmet Refining & Trading (ERT). The division is expected to manage sourcing, processing and material delivery across the company’s global tungsten network.

Elmet stated that ERT will also support mining and processing partnerships in the United States, Australia and Spain. The division is positioned as a central hub linking upstream raw material sources with downstream manufacturing and customer delivery.

Separately, Elmet Technologies, a subsidiary of The Elmet Group, has been awarded an indefinite delivery/indefinite quantity contract by the Defense Logistics Agency Strategic Materials. The contract covers the supply of tungsten ores, concentrates and sodium tungstate to support rebuilding the U.S. National Defense Stockpile for tungsten.

The IDIQ contract has a ceiling value of up to $2 billion and includes a guaranteed funded commitment of $150 million. It features a five‑year base ordering period through August 30, 2031, with a two‑year extension option that could run through August 30, 2033, if exercised.

Elmet said it does not intend to begin deliveries into the National Defense Stockpile until incremental supply becomes available. Those volumes are expected to come from new mining investments, offtake agreements and processing capacity expansions announced in connection with the Department of War investment and the Springer development plan.

By linking stockpile deliveries to new supply, Elmet aims to align its contractual obligations under the DLA agreement with the ramp‑up of the Springer Tungsten Complex and other capacity additions. The combination of federal funding, joint‑venture development and long‑term offtake commitments is intended to underpin a more resilient tungsten supply chain for defense and allied industrial users.