Elmet deploys up to US$175M toward Nevada tungsten restart after major DoW investment

The advanced manufacturing firm has also secured a US$2B tungsten stockpile contract

Rowan Dunne

Published

1 hour ago

The Department of War has allocated another large sum to American critical minerals infrastructure as it continues efforts to reduce reliance on foreign suppliers.

On Sept. 14, the department announced a US$450 million investment in Elmet Group Co (NASDAQ: ELMT). The funds take the form of redeemable preferred equity. This means the government receives special shares that get paid first if the company distributes money or is sold, before ordinary shareholders receive anything. The company can also buy those shares back later.

An initial US$200 million is going in at closing with further amounts to follow. In return, the department gains rights equivalent to up to 19.9 per cent of the common stock plus a board seat. Separately, one of Elmet’s units secured a contract from the Defence Logistics Agency this week worth up to US$2 billion to help rebuild the national tungsten stockpile. That agreement includes a guaranteed minimum spend of US$150 million and runs for at least five years.

Elmet is the sole U.S.-owned maker of certain engineered tungsten/molybdenum products. Its plants in Maine, Michigan and Ohio already supply more than 100 defence programmes including the F-35 fighter, Patriot missiles and Virginia-class submarines. The new capital will expand those sites and establish the only independent tungsten processing plant of its type in North America.

Investment propels Springer reboot

Of the total, US$150 million to US$175 million is being directed to Blue Moon Metals Inc‘s (CVE: MOON) (NASDAQ: BMM) (FRA: 8SX0) Springer tungsten complex in Nevada. Elmet is forming a joint venture with Blue Moon and Australia’s EQ Resources Ltd (OTCMKTS: EQRLF) to restart the former mine, mill and processing plant. Blue Moon retains full ownership of the mine and mill while the partners share the processing operation.

“This transaction is transformational for EQR,” said EQ Managing Director Craig Bradshaw. “It delivers a 10 per cent interest in what will be a significant new ammonium paratungstate [APT] facility in North America, an eight-year offtake agreement for 4,000 tonnes of contained tungsten trioxide from our mines, and a leading role in the engineering and project delivery of the APT plant.”

The mine and mill are scheduled to resume production by the end of 2027 with the processing plant following in mid-2028.The funding builds on recent steps at the site. In August Blue Moon obtained key state permits and posted its reclamation bond which allows construction to begin. It has also acquired extra land and water rights and started a large drilling programme to update older resource data.

Higher tungsten prices over the past year, which rose more than 200 per cent in 2025 and stayed elevated into 2026, have contributed to the renewed activity.

Antimony work continues on the back burner

Blue Moon has also started pursuing antimony, another critical mineral. In August, it acquired 33 exploration projects across Nevada, Colorado, Idaho and Arizona. In Nevada, it works alongside other notable developers including NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) at Limo Butte, Military Metals Corp (CNSX: MILI) (OTCMKTS: MILIF) (FRA: QN90) at Last Chance and Spartan Metals Corp (OTCMKTS: SPRMF) (CVE: W) (FRA: JO3).

With the substantial Springer funding from Elmet now being utilised, these earlier-stage antimony activities are expected to receive less of Blue Moon’s immediate attention.

“This transaction, along with our previously announced acquisition of 33 western U.S. based tungsten and antimony projects, and our Apex germanium and gallium mine in Utah, should position Blue Moon as an important name in the domestic industrial metal supply chain,” said CEO Christian Kargl-Simard in a press release on Monday.

U.S. Tungsten: This is big news 👀🔥
Blue Moon, The Elmet Group, and EQ Resources Announce a US$150-$175 Million Investment into the Springer Tungsten Complex, Nevada, to Strengthen the U.S. Tungsten Supply Chain 🇺🇸https://t.co/Rj5vQf7w1l pic.twitter.com/bpcZz1p3hm

— Oliver Groß (@minenergybiz) September 14, 2026