The US Department of Defense is investing $450 million in American company The Elmet Group to strengthen domestic tungsten production and processing capabilities — a strategically important material for the defense industry.
As Defense News reports, the decision is driven by the need to reduce US dependence on foreign supplies of the critical metal. China dominates the global tungsten market, while the US has not mined it since 2015.
According to the US Geological Survey, China accounts for approximately 85% of global tungsten supplies. The metal has a very high density and the highest melting point of any metal. It is used in the manufacture of industrial tools, weapons components, and other military products.
An additional factor was the US decision to ban the use of tungsten mined, refined, or processed in China, Russia, Iran, and North Korea in its defense procurement. The new rules are set to take full effect on January 1, 2027.
The Elmet Group plans to direct the funds toward expanding American production. Specifically:
- $165 million — for modernization of facilities in Maine, Michigan, and Ohio;
- $150 million — for resuming tungsten mining in Nevada;
- approximately $100 million — for establishing a tungsten processing and trading division.
The Elmet Group positions itself as the only American manufacturer with fully integrated capabilities for producing tungsten and molybdenum materials and components.
The company’s products are used in more than 100 US defense programs, including Patriot, Javelin, Aegis, and THAAD systems, Trident II missiles, and Virginia- and Columbia-class submarines.
