Elmet Group Secures $230M Annual Tungsten Supply Deal with UK’s…

Event summary

Elmet Group signed a long-term tungsten offtake agreement with Tungsten West for 1,000+ metric tonnes annually from Hemerdon Mine, valued at $230M at current APT prices.
The deal aligns with the U.S. Department of War’s $450M investment in Elmet and UK government’s strategic backing of Tungsten West.
Tungsten will be processed into APT and intermediates through Elmet’s refining network, supporting U.S. and UK manufacturing operations.
Hemerdon Mine, one of the world’s largest tungsten deposits, aims to reach full production by Q1 2027.

The big picture

This deal underscores the growing emphasis on securing allied-sourced critical minerals amid geopolitical tensions. The partnership between Elmet and Tungsten West reflects broader efforts by the U.S. and UK to reduce reliance on China-dominated supply chains, particularly for materials vital to defense and high-tech industries. The $230M annual offtake agreement highlights the scale of investment flowing into Western critical mineral projects.

What we're watching

Supply Chain Resilience: Whether Elmet and Tungsten West can sustain production increases to meet defense and industrial demand across the U.S. and UK.
Geopolitical Dynamics: How the U.S.-UK partnership in critical minerals will influence broader Western supply chain strategies.
Execution Risk: The pace at which Hemerdon Mine ramps up production and integrates with Elmet’s refining and manufacturing network.