The investment aims to overhaul domestic tungsten manufacturing and secure a stable pipeline of raw materials. Elmet plans to utilize an initial $200 million drawdown at closing to expand its mining and processing footprint. In exchange, the Defense Department secures redeemable preferred equity, warrants for 20% of common stock, and two seats on the board—one independent director and one non-voting observer.

Elmet has earmarked $150 million of the funding to fortify the U.S. tungsten supply chain, specifically catering to aerospace and defense contractors. This initiative involves a joint venture with Blue Moon Metals and EQ Resources to operate a processing plant in Nevada. Following the announcement, Blue Moon Metals saw its own shares climb 19% to $6.49.