The Elmet Group Secures $2.45 Billion in Defense Department Agreements
The Elmet Group has secured two major agreements with the U.S. Department of Defense (DOD) totaling approximately $2.45 billion to bolster its tungsten supply chain and expand domestic production capabilities. The first is a five-year, $2 billion indefinite delivery/indefinite quantity contract from the Defense Logistics Agency to support the National Defense Stockpile. A second agreement involves DOD purchasing $450 million in Class A preferred stock through its Economic Defense Unit program. The funding will be used to modernize and expand Elmet’s tungsten mining, processing, and manufacturing operations across the U.S., including upgrades at the Springer Tungsten Complex in Nevada. The company also plans a joint venture with Blue Moon Metals and EQ Resources Limited for this site. These agreements come amid new export restrictions on black mass and tungsten waste by the Commerce Department's Bureau of Industry and Security. Tungsten is critical to defense applications, including components used in over 100 DOD programs such as the F-35 fighter jet and missile systems. The contracts include a guaranteed $150 million minimum commitment for supplying tungsten concentrates and sodium tungstate.
Topics: aerospace defense government contracts tungsten supply chain