SEPTEMBER 14, 2026 – The Department of War’s Office of the Assistant Secretary of War for Industrial Base Policy, in partnership with the Economic Defense Unit, announced today a $450 million redeemable preferred equity investment in The Elmet Group through the Industrial Base Analysis and Sustainment program. This strategic investment will strengthen domestic tungsten capacity, bolster U.S. industrial resilience and military readiness, and help secure an essential material for the defense industrial base.
“This investment reflects the Department’s commitment to rebuilding critical industrial capacity in the United States,” said assistant secretary of War for industrial base policy Hon. Mike Cadenazzi. “Expanding domestic tungsten processing will strengthen supply chain resilience, support high-quality manufacturing jobs, and reinforce the production base behind essential defense systems.”
The Elmet Group is the only U.S.-owned, fully integrated producer of tungsten and molybdenum materials and components, supports more than 100 Department of War programs, including the F-35, Patriot PAC-3, Trident D5, NGI, PrSM, and Virginia- and Columbia-class submarines. Tungsten is a foundational input for the defense industrial base, prized for its hardness, heat resistance, density, and durability, and used in critical components across missiles, munitions, aerospace, propulsion, naval, undersea, electronics, and industrial manufacturing applications.
“The Economic Defense Unit was created to identify critical industrial chokepoints before adversaries can exploit them and before they become battlefield risk,” said George K. Kollitides II, director of the Economic Defense Unit. “Tungsten is essential to the systems that protect American warfighters and sustain deterrence, and this investment helps secure a domestic processing capability the United States cannot afford to leave exposed. By pairing targeted Department support with a disciplined preferred equity structure, we are strengthening the supply chain behind more than 100 defense programs while protecting taxpayers and delivering for the joint force.”
The Department’s investment into Elmet will also establish the only independent ammonium paratungstate facility in North America, which is a key step for tungsten processing and one of the largest chokepoints across the U.S. industrial base. By expanding U.S.-aligned refining and processing capacity, this investment will help reduce reliance on adversary-dominated supply chains in markets where China currently dominates global supply, including an estimated 85 percent of tungsten and 40 percent of molybdenum.
The Department’s investment is expected to generate substantial economic benefits, including new high-tech jobs across Coldwater, Michigan, and Lewiston, Maine, preserving high-paying manufacturing jobs in Euclid, Ohio, and increasing demand for upstream mining jobs in Nevada.
It is also expected to support approximately 1,200 downstream jobs across manufacturing, engineering, and logistics networks tied to major defense suppliers.
The investment reflects the Department’s broader strategy to secure critical industrial inputs, protect the defense supply chain, and ensure the United States can produce the materials required for sustained military advantage.