Economy & Energy
US awards $2 billion contract to rebuild strategic tungsten stockpile
Elmet Group says a subsidiary has secured an approximately $2 billion US contract focused on rebuilding strategic tungsten reserves.
The US Defense Logistics Agency has awarded an Elmet Group subsidiary a contract valued at approximately $2 billion to support the National Defense Stockpile and strengthen the domestic supply chain for tungsten. The award places one of the most strategically important industrial metals at the centre of Washington’s effort to reduce supply vulnerabilities.
Tungsten combines exceptional hardness with a very high melting point. It is used in cutting tools, electronics, energy equipment and a range of defence applications, including components that must withstand extreme heat or mechanical stress. Those properties make substitution difficult in some military and industrial systems.
Elmet said the contract would help rebuild national reserves and reinforce US production capacity. The Defense Logistics Agency manages material and logistics support for the armed forces and oversees parts of the federal stockpile system. A large multi-year award can provide manufacturers with the demand certainty required to expand processing, refining and fabrication capacity.
The contract also reflects concern about the concentration of global critical-mineral supply chains. Mining is only one part of the issue: refining and conversion into usable industrial products can be even more concentrated. US policy has increasingly treated secure access to tungsten, rare earths and other materials as a defence-readiness requirement rather than a purely commercial matter.
Rebuilding a stockpile does not eliminate overseas dependence immediately. It creates a buffer against disruption while domestic or allied supply projects are developed. The practical value of the contract will depend on delivery volumes, product specifications, production milestones and the extent to which material is sourced and processed within trusted supply chains.
The publicly announced figure represents the potential value of the contract rather than proof that the entire amount has already been spent or delivered. Large federal procurement arrangements may include options, delivery schedules and performance requirements that determine the final expenditure over time.
Tungsten security is closely connected to processing technology. Ore must be converted into powders, alloys and finished components that meet strict specifications, so a mine alone cannot supply a defence production line. The contract can support capacity across that chain and create demand for recycling material already inside the United States. It may also encourage allied producers to qualify as suppliers. Exact sourcing rules and quantities were not included in the initial announcement, and those details will determine how much dependence is actually reduced.
Elmet did not frame the award as a response to a single crisis. It fits a wider US effort to protect defence manufacturing from export restrictions, geopolitical competition and transport disruption. By placing tungsten into long-term procurement planning, the government is seeking both an emergency reserve and a more resilient industrial base for equipment that cannot be produced without specialized high-performance materials.