Department of War Announces a $450 Million Investment in The Elmet Group to Secure America's Tungsten Supply Chain

Sept. 14, 2026 |

The Department of War's Office of the Assistant Secretary of War for Industrial Base Policy, in partnership with the Economic Defense Unit, announced today a $450 million redeemable preferred equity investment in The Elmet Group through the Industrial Base Analysis and Sustainment program. This strategic investment will strengthen domestic tungsten capacity, bolster U.S. industrial resilience and military readiness, and help secure an essential material for the defense industrial base.

"This investment reflects the Department's commitment to rebuilding critical industrial capacity in the United States," said assistant secretary of War for industrial base policy Hon. Mike Cadenazzi. "Expanding domestic tungsten processing will strengthen supply chain resilience, support high-quality manufacturing jobs, and reinforce the production base behind essential defense systems."

The Elmet Group is the only U.S.-owned, fully integrated producer of tungsten and molybdenum materials and components, supports more than 100 Department of War programs, including the F-35, Patriot PAC-3, Trident D5, NGI, PrSM, and Virginia- and Columbia-class submarines. Tungsten is a foundational input for the defense industrial base, prized for its hardness, heat resistance, density, and durability, and used in critical components across missiles, munitions, aerospace, propulsion, naval, undersea, electronics, and industrial manufacturing applications.

"The Economic Defense Unit was created to identify critical industrial chokepoints before adversaries can exploit them and before they become battlefield risk," said George K. Kollitides II, director of the Economic Defense Unit. "Tungsten is essential to the systems that protect American warfighters and sustain deterrence, and this investment helps secure a domestic processing capability the United States cannot afford to leave exposed. By pairing targeted Department support with a disciplined preferred equity structure, we are strengthening the supply chain behind more than 100 defense programs while protecting taxpayers and delivering for the joint force."

The Department's investment into Elmet will also establish the only independent ammonium paratungstate facility in North America, which is a key step for tungsten processing and one of the largest chokepoints across the U.S. industrial base. By expanding U.S.-aligned refining and processing capacity, this investment will help reduce reliance on adversary-dominated supply chains in markets where China currently dominates global supply, including an estimated 85 percent of tungsten and 40 percent of molybdenum.

The Department's investment is expected to generate substantial economic benefits, including new high-tech jobs across Coldwater, Michigan, and Lewiston, Maine, preserving high-paying manufacturing jobs in Euclid, Ohio, and increasing demand for upstream mining jobs in Nevada.

It is also expected to support approximately 1,200 downstream jobs across manufacturing, engineering, and logistics networks tied to major defense suppliers.

The investment reflects the Department's broader strategy to secure critical industrial inputs, protect the defense supply chain, and ensure the United States can produce the materials required for sustained military advantage.

Department of War Announces a $100 Million Follow-on Equity Investment in Atalco to Secure the Sole Remaining Domestic Alumina Refinery

Aug. 28, 2026 |

The Department of War's (DoW) Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP)), in partnership with the Economic Defense Unit (EDU), announced today a $100 million follow-on preferred equity investment in Atlantic Alumina Company LLC (Atalco) through the Industrial Base Analysis and Sustainment (IBAS) program.

"Our national defense strategy relies on a robust and self-sufficient industrial base," said the Honorable Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy. "Investing in Atalco ensures the United States maintains its domestic alumina refining capability, mitigating a critical supply chain risk and protecting our military readiness from foreign interference."

This latest action brings the Department's total investment in Atalco to $400 million. Critically, DoW's funding has catalyzed $350 million in parallel investments from Atalco's current backers , with an additional $50 million expected within the next 75 days, bringing total third-party investments to $400 million. These collective strategic investments, totaling $800 million, will secure operations at the last remaining domestic alumina refinery, preserving a vital node in the U.S. defense industrial base.

Both the DoW's and private capital's follow-on investments will purchase Class A Preferred Units, providing the liquidity necessary to sustain operations, overcome unsustainable foreign competition, and fund capital expenditures to bring the facility back to its nameplate capacity of 1.2 million metric tons of alumina per year.

The DoW requires 200,000 metric tons of metallurgical aluminum annually. While Atalco currently satisfies 60 percent of this demand, this investment will scale production to fulfill 142 percent of the Department's projected demand by 2029. With 99.3 percent of the refinery's output dedicated to national security subsectors, the project significantly insulates the U.S. from supply-chain dependence on foreign adversaries.

"This transaction is structurally anchored to protect U.S. taxpayer capital while providing the targeted liquidity necessary to scale production," said George K. Kollitides II, Director of the Economic Defense Unit. "By investing in this strategic asset, DoW mobilized $400 million of private capital and attracted a world-class independent board of directors to accelerate the development of our domestic capabilities and bridge a vital gap in the aluminum supply chain."

Without this near-term investment, financial and operational stresses would likely force the closure of both the refinery and its affiliated mining operations. This agreement preserves approximately 875 direct jobs across refining, mining, logistics, and port operations, including 530 refinery employees in Gramercy.

The Gramercy facility converts imported bauxite into domestically refined alumina, accounting for roughly 55 percent of domestic alumina demand. It serves as a critical feedstock for aluminum production across the U.S. economy, supplying Century Aluminum smelters in Kentucky, the Mt. Holly smelter in South Carolina, and major manufacturing facilities across Texas, North Carolina, Alabama, Georgia, Illinois, and Mississippi.

This strategic partnership demonstrates the Department's ability to synchronize public and private sector efforts to meet urgent national security demands. Bolstered by the integration of third-party capital, this unified approach has empowered the United States to act decisively in establishing a resilient and enduring domestic aluminum supply chain for the future.