DoD Invested $450 Million to Expand Domestic Tungsten
Manufacturing operators must prepare for a 2027 procurement ban on tungsten sourced from adversarial nations.
Updated on Sept. 30, 2026 in Manufacturing
Live Poll
Should the U.S. government fund domestic mining to reduce reliance on foreign suppliers?
The Department of Defense invested $450 million in The Elmet Group to revive domestic tungsten production and strengthen supply chain resilience. This shift occurs ahead of a federal procurement rule that will ban tungsten from China, Russia, Iran, and North Korea beginning January 1, 2027.
Why it matters
The investment seeks to mitigate dependence on China, which currently controls 85% of the global tungsten supply. For operators, this marks a pivot toward domestic sources that will become mandatory for federal contractors and their supply chains by 2027.
The $450 million investment includes $165 million for manufacturing upgrades in Maine, Michigan, and Ohio, $150 million to restart mining in Imlay, Nevada, and $100 million for a new refining division. The Elmet Group currently supports over 100 defense programs.
The players
The Elmet Group
A Portland, Maine-based company that operates as the only fully integrated domestic producer of tungsten and molybdenum.
Department of Defense
The federal executive department responsible for coordinating and supervising all agencies and functions of the government concerned directly with national security.
The details
The Elmet Group, the only fully integrated U.S. tungsten and molybdenum producer, will use the funding to verticalize its supply chain. By establishing a domestic refining division and restarting mining in Nevada, the company aims to decouple its operations from Chinese-controlled material markets. This transition is essential for firms involved in defense-related manufacturing that must achieve compliance with the upcoming 2027 sourcing restrictions.
Timeline
The Elmet Group was founded in 1929.
The United States ceased domestic tungsten mining in 2015.
The Elmet Group went public in 2026.
The Department of Defense announced the $450 million investment in September 2026.
The federal procurement rule for tungsten takes effect on January 1, 2027.
Market Landscape
This move follows a long-standing trend of federal efforts to onshore critical mineral production, mirroring similar initiatives to secure the semiconductor and battery supply chains. It marks a significant shift from the 2015 status quo, where domestic mining activities were entirely shuttered.
Operators in the defense and industrial sectors should audit their current material sourcing to identify reliance on Chinese-origin tungsten before the January 1, 2027, deadline. Consult with legal counsel to confirm if your current contracts will require recertification to exclude restricted sources.
The takeaway
The federal move to fund domestic tungsten production underscores the urgency of insulating critical supply chains from geopolitical volatility. Procurement officers should immediately review supplier certifications to ensure all tungsten components meet the new regulatory standards taking effect in 2027.
Further reading
For broader trends regarding industrial capacity, see Manufacturing.
Live Poll
Should the U.S. government fund domestic mining to reduce reliance on foreign suppliers?
