
Pentagon commits to invest $450M in ELMT, a tungsten company worth ~$500M before the announcement
What happened?
- DoW commits $450M to The Elmet Group to establish a domestic tungsten supply chain. Pentagon gets stock & warrants worth up to a 19.9% stake in ELMT in exchange.
- ELMT had a market cap of ~$500M before the announcement on September 14. It's now up +22.9% in 2 days.
- Tungsten is widely used in armor-piercing ammunition, missiles, submarines and other military systems. The US has no domestic commercial tungsten mining.
- ELMT builds tungsten and molybdenum components for defense and nuclear applications.
- An ELMT subsidiary also received a government contract worth up to $2B to supply tungsten for the US National Defense Stockpile.