The United States government is making a massive bet on domestic mineral security, announcing a series of strategic investments aimed at reducing reliance on foreign adversaries for materials essential to national defense. In a dual move revealed Monday, the Department of War injected 450 million dollars into tungsten producer The Elmet Group and expanded existing grants for rare earth developer Ucore Rare Metals. This push comes as Washington seeks to insulate its military supply chain from geopolitical volatility and tightening export controls from Beijing.
For The Elmet Group, the deal involves a complex financial arrangement where the newly created Economic Defense Unit will acquire preferred equity and warrants for nearly twenty percent of the company’s stock. Maine based Elmet plans to funnel over 165 million dollars into upgrading facilities across Maine, Michigan, and Ohio. These sites are vital hubs for producing tungsten components used in some of the country’s most sophisticated weaponry, ranging from F-35 fighter jets and Virginia class submarines to various missile systems like the Patriot and Javelin. Additionally, Elmet is partnering with Blue Moon Metals and Australia’s EQ Resources to revive ammonium paratungstate conversion at a mine in Nevada.
Beyond the immediate capital injection, Elmet has also locked in a long term safety net via a separate contract with the Defense Logistics Agency valued at up to 2 billion dollars. This agreement ensures that the National Defense Stockpile remains supplied with tungsten ores and concentrates through at least 2031. According to Elmet CEO Peter V. Anania, these steps are fundamental to ensuring a resilient supply of materials that underpin America’s broader industrial and economic stability.
At the same time, Canada based Ucore Rare Metals received additional funding to bolster its work on light rare earths specifically samarium and gadolinium. A new contract modification brings total Pentagon funding for Ucore’s RapidSX project to 27 million dollars. These specific minerals are crucial for high temperature magnets and nuclear reactor control rods, both of which have become higher risk assets following Chinese export restrictions earlier this year. With upcoming regulations set to ban defense procurement of magnets refined in certain covered countries by early 2027, Ucore CEO Pat Ryan noted that Washington is increasingly recognizing the urgent national need for independent separation capabilities within North American borders.
