Elmet Group Shares Gain on $450 Million Investment from Defense Department — Update

By Kelly Cloonan

Shares of The Elmet Group rose on a $450 million investment from the U.S. Department of Defense aimed at boosting the company's manufacturing capabilities in the country.

The stock climbed 42% to $23.06 in premarket trading Monday. As of Friday's market close, shares were down 21% over the past three months.

The critical materials provider said it will use the investment to increase domestic tungsten manufacturing, secure long-term access to critical raw materials, and strengthen its mining and processing capacity.

The investment will be funded through an initial $200 million drawdown at closing, followed by additional drawdowns. The Defense Department will also receive redeemable preferred equity, warrants representing up to about 20% of Elmet's common stock on a post-transaction basis, and the right to appoint one independent director to the company's board and one non-voting board observer, the company said.

In a separate statement Monday, the company said it has designated roughly $150 million from the Defense Department's investment for a series of transactions aimed at solidifying the U.S. tungsten supply chain for supply to aerospace and defense contractors.

Under the transactions, Elmet will work alongside Blue Moon Metals and EQ Resources to form a joint venture entity to own and operate a tungsten plant in Nevada.

Shares of Blue Moon also rose, up 19% at $6.49 in early trading Monday.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

September 14, 2026 08:44 ET (12:44 GMT)