The U.S. is backing an effort to rebuild its tungsten supply chain as China maintains a dominant position in the global market.
The U.S. Department of War, aka the Pentagon, has committed up to $450 million to The Elmet Group (NASDAQ: ELMT), a U.S.-owned tungsten and advanced materials company. About $150 million of that government-backed investment has been designated for a transaction involving Blue Moon Metals’ (TSXV: MOON; NASDAQ: BMM) Springer Tungsten Complex in Nevada.
Blue Moon, Elmet, and Australia-listed EQ Resources (ASX: EQR) have agreed to a US$150 million investment in the Springer project, with another US$25 million set aside by Elmet and EQ Resources for additional requirements, if needed, to restart the project’s ammonium paratungstate (APT) plant.
The deal comes as Washington tries to reduce exposure to China-dominated critical-mineral supply chains. Tungsten is particularly important because the U.S. has not mined the metal commercially since 2015, while domestic consumption remains heavily dependent on imports.
Department of War Backs Domestic Tungsten Capacity
Pentagon announced the $450 million investment in Elmet on September 14. The funding will take the form of redeemable preferred equity and is being provided through the department’s Industrial Base Analysis and Sustainment program.
The government says the investment will expand domestic tungsten capacity and strengthen the industrial base supporting U.S. defense programs. Elmet currently supplies materials and components for more than 100 Department of War programs, including the F-35, Patriot PAC-3, Trident D5, Next Generation Interceptor, PrSM and Virginia- and Columbia-class submarines.
A Bigger Role for Elmet
The government also says the investment will help establish North America’s only independent APT facility, addressing a major processing gap in the U.S. tungsten supply chain. China currently accounts for an estimated 85% of global tungsten supply, according to the Department of War.
Separately, Elmet said one of its subsidiaries secured a contract worth about $2 billion from the Defense Logistics Agency to help rebuild the National Defense Stockpile. The agreement includes a guaranteed funded commitment of $150 million and covers tungsten ores, concentrates and sodium tungstate.
The two announcements give Elmet a central role in Washington’s effort to rebuild domestic tungsten capacity, from raw material supply to processing and manufacturing.
U.S. Still Depends on Tungsten Imports
The supply-chain challenge is significant.
The latest U.S. Geological Survey data show that the U.S. has had no commercial tungsten mine production since 2015. Estimated 2025 imports reached:
- 1,700 tonnes of tungsten contained in ores and concentrates
- 10,000 tonnes in other tungsten forms
- More than 50% net import reliance for apparent consumption
USGS also estimates that China represented 26% of U.S. tungsten import sources between 2021 and 2024, followed by Germany at 14%, Bolivia at 8% and Vietnam at 8%.
The figures show why Washington is focusing on more than simply reopening a mine. The U.S. needs additional capacity across mining, processing and manufacturing if it wants to reduce exposure to overseas supply disruptions.
The supply risk has become more urgent since China introduced export controls on selected tungsten products in February 2025. USGS reported that prices climbed sharply during 2025. The average Rotterdam price for 65% tungsten concentrate increased from $252 per metric ton in 2024 to an estimated $380 in 2025.
USGS also ranks tungsten among the minerals with a high potential economic impact from supply disruption. Its 2025 assessment estimated a probability-weighted reduction of about $544 million in U.S. GDP under the modeled disruption scenario.
Springer Could Restart U.S. Tungsten Mining
Against that backdrop, the Springer project offers a potential domestic source.
The Springer Mine
Located near Imlay, Nevada, Springer historically ranked among the largest tungsten mines in the United States. The project includes open-pit and underground mining operations, a 1,200-ton-per-day mill and an APT plant designed for potential production of up to 4,000 tonnes per year.
- Blue Moon expects the Springer mine and mill to return to production in the fourth quarter of 2027. The APT plant is expected to restart in the second half of 2028.
The project already has access to water, electricity, natural gas, and tailings capacity. It is also located a few miles from Interstate 80 and the Union Pacific rail line. Blue Moon acquired additional water rights and land in September to provide access to the rail line, with the potential for a future loading facility.
Resource Estimate Needs Further Verification
Blue Moon reports a historical mineral resource of 10.7 million tonnes grading 0.45% WO₃. However, the company clearly states that this is a historical estimate from prior operators and has not been verified as a current NI 43-101 resource. Further drilling is planned to update the estimate.
That distinction is important for investors because the historical resource should not be treated as a current compliant resource.
Elmet Will Control the APT Plant
The transaction is designed to connect Springer mining with downstream tungsten processing.
Elmet will provide about $150 million across the Springer-related transactions. This includes a $50 million tungsten prepayment facility for Blue Moon and a $75 million capital contribution to the joint venture that will own and operate the APT plant. Elmet will also subscribe for $25 million of new Blue Moon equity.
The APT joint venture is expected to have the following ownership:
- Elmet: 70%
- Blue Moon: 20%
- EQ Resources: 10%
Phase-one APT capacity is targeted at 4,000 tonnes per year, with infrastructure planned to support blue tungsten oxide capacity and an additional leaching line. Elmet will operate the facility.
The structure gives Springer a pathway from mined tungsten concentrate to a processed product that can feed downstream U.S. manufacturing.
EQ Resources Adds Australian and Spanish Supply
EQ Resources brings an allied supply component to the project.
The Australian company operates the Mt Carbine tungsten project in Queensland and Barruecopardo in Spain. Under the agreement, EQ will take a 10% interest in the APT joint venture and enter into an offtake agreement covering 4,000 tonnes of tungsten trioxide contained in its concentrate over eight years after the APT plant begins operating.
During the first five years, EQ could use up to 25% of the APT plant’s input capacity, capped at 1,000 tonnes of production capacity per year. Springer would receive up to 75% of the input volume during that period, with additional material potentially sourced through other agreements supported by Elmet and the Department of War.
EQ is also testing its ore-sorting technology at the Springer mill. Initial results were positive, although additional testing is still required before installation is confirmed.
Building a U.S.-Aligned Tungsten Chain
The Springer deal represents one part of a broader effort to rebuild U.S. tungsten supply.
The Department of War’s $450 million commitment to Elmet, the separate potential $2 billion DLA stockpile contract, and the Springer investment all address different parts of the same vulnerability: the U.S. has significant tungsten demand but no active commercial tungsten mine.
For Blue Moon, the transaction provides funding and strategic partners to advance Springer. For Elmet, it expands control over tungsten processing and downstream manufacturing. For EQ Resources, it creates another route into the U.S. market for tungsten from allied jurisdictions.
The broader market backdrop is also becoming more supportive for new Western supply. Global tungsten mine production reached an estimated 85,000 tonnes in 2025, according to USGS, while China remained the world’s leading producer, importer and consumer of tungsten concentrates.
Springer will not eliminate U.S. import dependence on its own. But if Blue Moon meets its development targets, the project could become an important domestic source of tungsten concentrate and APT.
The bigger investment story is the attempt to rebuild the entire supply chain, from Nevada mining to North American processing and U.S. defense manufacturing, at a time when China continues to dominate the global tungsten market.