WASHINGTON — The U.S. Department of War’s Office of the Assistant Secretary of War for Industrial Base Policy, in partnership with the Economic Defense Unit, has announced a $450 million redeemable preferred equity investment in The Elmet Group to secure the nation’s tungsten supply chain and enhance defense industrial resilience.
Funded through the Industrial Base Analysis and Sustainment (IBAS) program, the investment will establish North America’s only independent Ammonium Paratungstate (APT) processing facility. This critical infrastructure milestone is designed to directly counter foreign supply chain vulnerabilities in markets where China currently controls roughly 85 percent of global tungsten and 40 percent of molybdenum processing.
As the sole U.S.-owned, fully integrated producer of tungsten and molybdenum materials, The Elmet Group directly supports more than 100 frontline defense programs. Key platforms dependent on these heat-resistant, high-density materials include the F-35 Joint Strike Fighter, Patriot PAC-3 interceptors, Trident D5 missiles, Next Generation Interceptor (NGI), Precision Strike Missile (PrSM), and both Virginia-class and Columbia-class nuclear submarines.
In addition to securing critical defense inputs, the capital injection will generate high-tech manufacturing and engineering jobs across Coldwater, Michigan, and Lewiston, Maine, while preserving existing production lines in Euclid, Ohio, and driving upstream mining demand in Nevada.
Deal Summary
| Field | Details |
| Customer / Funding Body | U.S. Department of War (Office of Industrial Base Policy & Economic Defense Unit) |
| Recipient Company | The Elmet Group |
| Contract Value | $450 Million (Redeemable Preferred Equity Investment via IBAS Program) |
| Core Scope | Establish North American Ammonium Paratungstate (APT) processing facility & expand tungsten capacity |
| Strategic Goal | Mitigate adversary supply chain chokepoints (China controls ~85% tungsten / ~40% molybdenum) |
| Supported Programs | F-35, Patriot PAC-3, Trident D5, NGI, PrSM, Virginia-class & Columbia-class submarines |
| Industrial Impact | High-tech job creation in MI & ME; facility preservation in OH; upstream mining expansion in NV |
This strategic capital deployment highlights Washington’s accelerating push to insulate its defense manufacturing base from foreign leverage by directly financing critical processing infrastructure. By securing domestic production of foundational defense materials like tungsten, the U.S. ensures long-term industrial readiness for its most advanced missile, aerospace, and naval programs.
