Elmet Group wins $2 billion US tungsten stockpile contract
ELMT•Separate U.S. funding to expand domestic manufacturing
Separately, Elmet said it had secured about $450 million from the U.S. Department of War to accelerate domestic manufacturing expansion and strengthen partnerships across its tungsten supply chain.
- The investment includes an initial $200 million drawdown at closing, with additional funding to follow.
- In return, the government will receive redeemable preferred equity, warrants representing up to 19.9% of Elmet's common stock on a post-transaction basis, and rights to appoint one independent director and one non-voting board observer.
- The company plans to invest more than $165 million in facilities in Maine, Michigan and Ohio to expand production capacity, increase tungsten output and modernize infrastructure supporting U.S. defense, aerospace and industrial programs.
Contract to supply tungsten for the National Defense Stockpile
Sept. 14 (Reuters) - Elmet Group ELMT.O said on Monday one of its units had been awarded a contract worth about $2 billion by the U.S. Defense Logistics Agency (DLA) to help rebuild the National Defense Stockpile and strengthen the country's tungsten supply chain.
- The contract, which includes a guaranteed funded commitment of $150 million, covers the supply of tungsten ores, concentrates and sodium tungstate to DLA Strategic Materials.
- Tungsten is a critical mineral used in aerospace and defence equipment because its extreme heat resistance and hardness allow components to withstand intense temperatures, stress and wear.
