On Monday, Sept. 14, the U.S. Department of War announced that it will invest $450 million in The Elmet Group to expand domestic tungsten production and processing, part of a broader effort to reduce U.S. reliance on critical-mineral supply chains dominated by China.

The investment will take the form of redeemable preferred equity and will be made through the Industrial Base Analysis and Sustainment program, according to a Sept. 14 Department of War announcement. The department said the funding is intended to strengthen domestic tungsten capacity, improve industrial resilience and military readiness, and secure a critical material for the U.S. defense industry.

“This investment reflects the Department’s commitment to rebuilding critical industrial capacity in the United States,” Mike Cadenazzi, assistant secretary of War for industrial base policy, said in the release. Expanding domestic tungsten processing, he added, would strengthen supply chains, support manufacturing jobs and reinforce production behind critical defense systems.

Tungsten critical to US weapons systems

Elmet is the only U.S.-owned, fully integrated domestic producer of tungsten and molybdenum materials and components, according to the department. The company supports more than 100 defense programs, including the F-35 fighter jet, Patriot PAC-3 missile, Trident D5 missile, Next Generation Interceptor, Precision Strike Missile, and Virginia- and Columbia-class submarines.

Tungsten’s hardness, high density and ability to withstand extreme temperatures make it important in missiles, munitions, aerospace systems and other military applications. Reuters reported separately that an Elmet subsidiary has also received a Defense Logistics Agency contract worth up to $2 billion to supply tungsten materials for the National Defense Stockpile. The contract includes a guaranteed $150 million commitment.

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The $450 million investment is also expected to establish North America’s only independent ammonium paratungstate, or APT, production facility. APT is a key intermediate material in tungsten processing and one of the major bottlenecks in the U.S. industrial base, according to the department.

China currently accounts for an estimated 85 percent of global tungsten supply and about 40 percent of molybdenum supply, the department said. The investment is intended to expand U.S. and allied refining and processing capacity and reduce dependence on supply chains controlled by strategic competitors.

Investment expected to support US jobs

The investment is expected to create new high-tech jobs in Coldwater, Michigan, and Lewiston, Maine; preserve manufacturing jobs in Euclid, Ohio; and increase demand for mining workers in Nevada. The department said another roughly 1,200 downstream jobs could be supported across manufacturing, engineering and logistics.

Elmet said in its own announcement of the agreement that more than $165 million is expected to go toward its operations in Maine, Michigan and Ohio, while additional funding will support mining and processing operations in the United States and allied countries.

Original article