We’ve been telling investors for years that tungsten is one of the most important and overlooked metals in modern civilization…
But that it’s also one of America’s greatest strategic vulnerabilities.
And while Wall Street chases artificial intelligence, semiconductor stocks, and the next technological breakthrough, we’ve been focused on something more fundamental…
The materials that make those technologies possible.
And we’ve repeatedly warned that America’s dependence on China for those materials represents an enormous economic and national security risk.
Now Washington is putting its money where its mouth is…
On September 14, the Pentagon announced a $450 million investment in The Elmet Group (NASDAQ: ELMT), an American tungsten and molybdenum producer.
The agreement includes preferred equity and warrants that could give the government a 19.9% stake in the company, along with representation on its board.
But that’s only part of the story…
Elmet also secured a Defense Logistics Agency contract worth up to $2 billion to help rebuild the National Defense Stockpile.
This isn’t another government study or a promise to investigate America’s critical mineral shortages.
It’s a substantial financial commitment to rebuilding the country’s tungsten supply chain.
And for investors who’ve been following our research, it’s further confirmation of a trend we’ve been watching for years.
The Metal That Makes Everything Possible
Tungsten doesn’t get the attention that gold, copper, or lithium receive. But it’s every bit as important to the modern economy…
With the highest melting point of any pure metal, exceptional hardness in carbide form, and remarkable density, tungsten possesses a combination of properties that makes it extremely difficult to replace.
It’s used in cutting tools that shape the metals in automobiles, aircraft, and industrial machinery.
It plays an important role in semiconductor manufacturing and the production of advanced electronics.
And its density, hardness, and heat resistance make it essential to numerous defense applications, including armor-piercing ammunition, missiles, and aerospace systems.
According to the Pentagon, Elmet’s products support more than 100 defense programs.
In other words, tungsten isn’t just another commodity…
It’s one of the foundational materials supporting America’s manufacturing industry, technological leadership, and national defense.
And we’ve allowed adversaries to dominate its supply…
China accounts for approximately 79% of global production. Meanwhile, the United States has gone more than a decade without commercial production.
And that means American manufacturers might possess the world’s most advanced factories and engineering expertise…
But they still remain entirely dependent on a geopolitical rival for essential raw materials.
And Beijing has already demonstrated its willingness to use that advantage…
In February 2025, China imposed export controls on selected tungsten products.
Those restrictions contributed to sharply higher tungsten prices as Western manufacturers scrambled to secure supplies.
And we’ve warned repeatedly that China doesn’t need to halt every shipment to disrupt Western manufacturing.
Export licenses, administrative delays, and uncertainty about future deliveries can be enough to create serious problems for industries that require dependable supplies.
That’s particularly dangerous when the industries in question include national defense.
Which brings us back to Elmet.
This Is About More Than One Company
One of the most interesting aspects of the Pentagon’s investment is where the money is going…
Elmet plans to spend more than $165 million expanding and modernizing its manufacturing facilities in Maine, Michigan, and Ohio.
Another approximately $150 million is earmarked for the Springer Tungsten Complex in Nevada.
That’s where Elmet and its partners are working to restart and expand tungsten processing capacity.
Because finding tungsten in the ground is only the beginning…
The ore must be mined, processed, refined, and transformed into the materials that manufacturers actually use.
A domestic mine that sends its production overseas for processing doesn’t eliminate America’s dependence on foreign suppliers.
And a processing facility without reliable access to ore isn’t much better.
So, Elmet is working to address both problems by securing raw materials from mines in the United States and allied countries while expanding domestic processing and manufacturing.
But one company can’t rebuild an entire industry. And that’s where we’re convinced the next major opportunity lies.
The Next Government Investment Could Be Even More Important
The Elmet agreement doesn’t solve America’s tungsten problem overnight…
New mines take years to develop.
Processing facilities require substantial capital, specialized equipment, and experienced workers.
Manufacturers need reliable suppliers capable of meeting their specifications.
So, rebuilding this supply chain will require additional investment across the industry.
And the Pentagon has already demonstrated that it’s willing to provide more than encouragement.
The government has several potential tools at its disposal, including direct equity investments, loans, grants, long-term purchasing agreements, and additional stockpile acquisitions.
Any one of those could make an enormous difference for domestic tungsten developers…
A mining company struggling to secure financing might suddenly have a much more attractive project if it receives government support or secures a long-term customer.
A processing company might be more willing to invest in new capacity if it knows the Pentagon will purchase its output.
And investors might begin assigning greater value to tungsten resources that previously received little attention.
Now, that doesn’t mean every tungsten developer will receive funding or that every promising deposit will become a profitable mine.
But it does mean companies with credible resources, realistic development plans, and a clear role in America’s supply chain deserve close attention.
And the Elmet deal provides more evidence that additional government support is likely coming.
Wall Street Is Finally Catching On
For years, we’ve argued that America’s dependence on China for critical minerals represents both a serious vulnerability and an investment opportunity.
We’ve explained why tungsten is indispensable to modern industry, why China’s dominance threatens Western manufacturers, and why rebuilding domestic production could create substantial opportunities for investors.
Now the Pentagon has committed $450 million to an American tungsten producer and established a purchasing arrangement worth another $2 billion.
That’s a powerful confirmation of the strategic importance we’ve been discussing.
And I don’t believe Washington is finished…
America needs more domestic mining, more processing capacity, and more reliable supplies of the materials that keep its factories running and its military equipped.
And those needs won’t disappear when the next headline comes along.
The companies that successfully help meet them could find themselves at the center of a much larger industrial transformation.
That’s why we’ve been paying attention to tungsten long before Washington started writing nine-figure checks.
And it’s why we’re going to keep watching the companies working to rebuild America’s tungsten supply chain.
The Elmet investment is an important milestone, but I suspect it’s only the beginning.