US Tungsten Race Heats Up as 2027 Defense Sourcing Ban Nears
Vancouver – October 13, 2026 -- The U.S. Department of War has committed $450 million to The Elmet Group, the largest federal tungsten investment so far, as defense procurement rules barring tungsten from China, Russia, Iran and North Korea take effect on January 1, 2027.
Washington pairs equity investment with a $2 billion stockpile contract
The September 14 package includes a Defense Logistics Agency contract with a ceiling of $2 billion for tungsten supply to the National Defense Stockpile. The contract carries a guaranteed funded commitment of $150 million. The investment is funded through an initial $200 million drawdown at closing, in exchange for redeemable preferred equity and warrants for up to 19.9% of Elmet's common stock.
About $150 million is allocated to restarting and expanding ammonium paratungstate conversion at the Springer Tungsten Complex in Imlay, Nevada, through a majority-owned joint venture.