Pentagon acquires near-20% stake in US tungsten producer in $450M deal to cut China dependence

The US Department of Defense is putting $450 million into Elmet Group, the country’s only fully integrated tungsten and molybdenum producer, in a deal that would give the federal government up to 19.9% ownership of the company. The goal is straightforward: stop relying on China for a metal that’s essential to everything from armor-piercing ammunition to aerospace components. China controls roughly 85% of the global tungsten market. For a material the military literally cannot function without, that’s the kind of supply chain concentration that keeps Pentagon planners up at night. How the deal is structured The investment is built around redeemable preferred equity and warrants, a structure that gives the government significant upside without requiring an outright acquisition. It also comes with a seat at the table: the DoD will be able to appoint one independent director to Elmet’s board. Of the $450 million, more than $165 million is earmarked for modernizing Elmet’s existing facilities in Maine, Michigan, and Ohio. Another $150 million or so will flow into a joint venture tied to the Springer Tungsten Complex in Nevada, which would become North America’s only ammonium paratungsta...