Highlights

The U.S. Department of War announced a $450 million redeemable preferred equity investment in The Elmet Group Co. (Nasdaq: ELMT) on September 14, 2026.
An Elmet subsidiary separately won a five-year Defense Logistics Agency contract with a ceiling of up to $2 billion and a guaranteed minimum of $150 million.
From January 1, 2027, U.S. defense rules restrict tungsten mined or processed in China, Russia, Iran or North Korea; the U.S. has had no commercial tungsten mine since 2015.

Washington is now putting money directly into tungsten. On September 14, 2026, the U.S. Department of War announced a $450 million investment in The Elmet Group Co. (Nasdaq: ELMT), a U.S. maker of tungsten and molybdenum materials. Three days earlier, an Elmet subsidiary won a Defense Logistics Agency contract worth up to $2 billion to help refill the National Defense Stockpile.

The timing lines up with a deadline. On January 1, 2027, Pentagon procurement rules start tracing tungsten all the way back to the mine.

The Equity Stake

The $450 million comes as redeemable preferred equity. That is a class of stock that typically ranks ahead of common shares and can be bought back by the company on agreed terms. According to the department, the money flows through its Industrial Base Analysis and Sustainment program, in partnership with its Economic Defense Unit.

Elmet draws $200 million at closing, with the rest arriving in later drawdowns. In return, the department receives warrants covering up to 19.9% of Elmet’s common stock on a post-transaction basis, plus the right to appoint one independent director and one non-voting board observer.

Elmet says more than $165 million will go to its plants in Lewiston, Maine; Coldwater, Michigan; and Euclid, Ohio, adding tungsten heavy alloy and powder capacity. The department estimates the deal supports about 1,200 downstream jobs.

The Stockpile Contract

The supply deal, awarded September 11, is an indefinite delivery/indefinite quantity (IDIQ) contract. That structure sets a spending ceiling and lets the government place orders over time. Here the ceiling is $2 billion over five years, with a guaranteed minimum of $150 million for tungsten concentrates and sodium tungstate.

Only that $150 million is locked in. Everything above it depends on what the agency actually orders.

A Nevada Restart

Some of the money is headed to a mine. Under a binding letter agreement dated September 11, Elmet, Blue Moon Metals Inc. (TSXV: MOON; Nasdaq: BMM) and Australia’s EQ Resources Limited (ASX: EQR) laid out a $150 million to $175 million plan for the Springer Tungsten Complex in Imlay, Nevada.

Elmet’s $150 million splits into a $25 million equity investment in Blue Moon, a $50 million prepayment facility to be repaid from Springer concentrate sales, and $75 million for a joint venture that will own the site’s ammonium paratungstate (APT) plant. APT is a key intermediate product and a common pricing benchmark for the metal. Elmet will hold 70% of the venture, Blue Moon 20% and EQ 10%. Elmet and EQ have set aside another $25 million in standby funding for the APT restart if needed.

Blue Moon is targeting a restart of the mine and its 1,200-tonne-per-day mill in the fourth quarter of 2027, with APT output to follow in the second half of 2028. Those are company targets, and they land after the 2027 deadline.

Why January 2027 Matters

The rule lives in the Defense Federal Acquisition Regulation Supplement (DFARS), clause 252.225-7052. Through the end of 2026, it covers tungsten metal powder and tungsten heavy alloy melted or produced in China, Russia, Iran or North Korea. From January 1, 2027, the test widens to material mined, refined, separated, melted or produced in those countries.

Put simply, ore from a covered country no longer clears the bar just because it was processed somewhere else. Exceptions and nonavailability provisions still apply. Congress wrote the change into the fiscal 2021 defense authorization act, then pushed its start date back a year to 2027.

The Supply Gap

The U.S. Geological Survey says tungsten has not been mined commercially in the United States since 2015. China produced an estimated 67,000 of the world’s 85,000 metric tons in 2025, roughly 79% of global mine output.

Prices have already reacted. USGS data show Rotterdam APT climbed from $331 to $675 per metric ton unit over 2025, after the U.S. raised tariffs on several Chinese tungsten products and China added export controls. A metric ton unit equals 10 kilograms of tungsten trioxide, the industry’s standard pricing measure.

Downstream, the country still has some capability. USGS counts seven U.S. companies able to convert concentrates, APT or scrap into tungsten powder and chemicals. Domestic feed for those plants is the thinner link. Springer’s mine and APT plant are aimed squarely at it.

Sources

Editorial Disclosure

This market outlook is based on public announcements issued by the U.S. Department of War and by The Elmet Group Co., Blue Moon Metals Inc. and EQ Resources Limited on September 14, 2026, together with the published text of the Defense Federal Acquisition Regulation Supplement and the U.S. Geological Survey’s Mineral Commodity Summaries 2026. Securities discussed: The Elmet Group Co. (Nasdaq: ELMT) | Blue Moon Metals Inc. (TSXV: MOON | Nasdaq: BMM) | EQ Resources Limited (ASX: EQR). Mining Markets Report has not received compensation from any company named in this article, its management, investor relations representatives, or any third party for the creation of this specific coverage. No staff member, principal, or affiliate of Mining Markets Report holds a position, option, or interest in these securities as of the publication date. References to U.S. government investments and procurement rules describe disclosed transaction terms and published regulatory text only; Mining Markets Report offers no opinion on government industrial policy. Statements regarding mine and plant restarts, production timelines, contract orders, and capacity expansions are forward-looking statements. They are subject to operational risks, financing, permitting, and regulatory approvals; actual outcomes and timing may differ materially. Contract ceiling values represent maximum potential amounts, not committed spending. Mining and critical minerals stocks carry a high degree of financial risk and can result in the total loss of invested capital. This overview is published strictly for informational, news-reporting, and educational market context purposes only. It does not constitute an investment recommendation, endorsement, or professional financial, legal, or tax advice.

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