Mentioned:The Elmet GroupU.S. Department of Defense$450M · Government Support
The Defense Department invested $450 million in redeemable preferred equity in The Elmet Group to secure domestic tungsten supply and expand manufacturing. Tungsten is essential for missiles, munitions, aerospace propulsion and naval applications across more than 100 DoD programs including the F-35.
What's happening
- DoD took a $450 million redeemable preferred equity stake in The Elmet Group through the Industrial Base Analysis and Sustainment program.
- Elmet Group will use the capital to expand manufacturing and build a more vertically integrated tungsten supply chain.
- Tungsten supports over 100 DoD programs including the F-35 fighter jet, with applications in missiles, munitions, aerospace propulsion and naval systems.
Why it matters
- Domestic tungsten production eliminates reliance on foreign suppliers for a metal critical to missile and munitions manufacturing across the full DoD portfolio.
- Vertical integration reduces supply chain fragmentation and single-point-of-failure risk for propulsion systems and electronic components across 100+ programs.
- Securing tungsten supply ensures production rates can meet future demand from multiple weapons systems without import constraints or geopolitical disruption.
Financial impact
- DoD contribution of $450 million equity increases Elmet's cash balance and extends runway for manufacturing expansion, timing not disclosed.
- Redeemable preferred equity structure gives DoD downside protection and liquidity options while providing Elmet permanent capital to fund capacity buildout.
The fine print
- Investment takes form of redeemable preferred equity rather than common stock, preserving DoD exit options and priority claims on assets.
- Elmet Group ticker shown as ELMT in source, but private company status and listing details not confirmed by supplied text.
Source: Defense Daily · Sep 14, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.