Near-20% Stake – What’s Pentagon Planning?

U.S. Department of Defense display wall with service seals — Photo: Steve Mann / Shutterstock

Washington just put $450 million into U.S. tungsten to cut China out of our munitions supply chain.

Story Highlights

The Department of War invested $450 million in The Elmet Group to expand U.S. tungsten capacity.
The deal gives the government redeemable preferred equity, board rights, and warrants up to 19.9%.
A separate contract targets rebuilding the National Defense Stockpile for tungsten, with $150 million guaranteed.
Officials link the move to strengthening America’s industrial base and military readiness.

Pentagon Moves to Secure a Munitions Metal at Home

The Department of War announced a $450 million redeemable preferred equity investment in The Elmet Group to expand domestic tungsten processing and strengthen military readiness. The department said the funding comes through its Industrial Base Analysis and Sustainment program, a channel designed to rebuild key manufacturing inside the United States. Assistant Secretary of War for Industrial Base Policy Mike Cadenazzi said the effort reflects a push to rebuild critical industrial capacity and make supply lines more resilient. The announcement was made on September 14, 2026.

Elmet said the money will increase U.S. manufacturing, secure access to raw materials, and boost mining and processing capacity across the tungsten chain. That chain runs from concentrates to powders and parts used in armor, penetrators, cutting tools, and high-heat components. The company framed the plan as a way to scale fast and lock in supply partnerships that support defense production in the United States. This fits President Trump’s push to onshore critical materials and end reliance on foreign chokepoints.

Equity Terms Signal Real Control and Long-Term Focus

Market reports say the investment includes redeemable preferred equity, warrants up to 19.9 percent after the deal, and rights to add one independent director plus a non-voting board observer. Those terms point to a hands-on federal role that goes beyond grants. The structure ties public money to governance, performance, and accountability. The approach suggests the government wants a say in capacity, quality, and delivery that support weapons production timelines and stockpile goals.

On the same day, a unit of Elmet won a contract worth about $2 billion to help rebuild the National Defense Stockpile for tungsten, with a guaranteed funded commitment of $150 million. Pairing company financing with a stockpile contract links capital to demand. It reduces risk for new furnaces, machines, and workers needed to lift output. It also ties future deliveries to U.S. needs rather than foreign buyers who can squeeze terms during a crisis.

Why Tungsten Matters for Readiness and Independence

Defense manufacturing needs tungsten for armor-piercing rounds, hardened tools, and high-temperature parts that must not fail. Analysts and officials have warned for years that foreign control over critical minerals and processing can stall U.S. production in a conflict. Recent coverage framed the Elmet stake as part of a wider Trump administration drive to secure critical minerals outside China’s reach and to anchor the supply chain on friendly ground. That focus aims to keep factories running when exports tighten and markets turn hostile.

U.S. policy often finds the choke point is not ore in the ground but refining and qualified parts. Tungsten has long been such a case: the hardest steps are converting feedstock into certified powders, wires, rods, and heavy alloys at scale. Building that midstream at home helps close the gap between raw material and finished components. It also shortens logistics, lowers supply risk, and can speed surge output when the services need more parts fast.

What the Government Said, What We Still Do Not Know

The War Department said the Industrial Base Analysis and Sustainment program is the vehicle for the deal, which aligns the money with formal defense-industrial policy rather than an ad hoc subsidy. The department highlighted supply chain resilience and readiness as the goals, with an emphasis on expanding U.S. processing and manufacturing rather than overseas dependence. Bloomberg noted the government will hold a near-20 percent stake, underscoring the scale and intent of the move.

The Pentagon just put $450 million into The Elmet Group for a near-20% stake.

This is not the market deciding. This is the state stepping in front of price discovery to force domestic Tungsten capacity and lock down the military supply chain. China still controls ~85% of the…

— Josh Philip Phair (@JoshPhilipPhair) September 14, 2026

Public sources do not include the full executed agreement, so some detailed terms, project site lists, and output targets are not disclosed in the announcements. Still, the combination of equity rights, board access, and a large stockpile contract shows a coordinated plan to rebuild tungsten capacity inside the United States. For readers who want America strong, this is a direct answer to years of drift, offshoring, and dependence on rivals for the metal behind our toughest tools and munitions.