The U.S. Department of Defense (DOD) and Department of Energy (DOE) announced a combined $466 million in new investments to expand domestic production of tungsten, a critical mineral for national defense and industrial manufacturing. The funding initiatives, unveiled in September and August, aim to reduce reliance on foreign supply chains dominated by China.
Key Developments:
- The DOD allocated $450 million to The Elmet Group, a U.S.-based producer of tungsten and molybdenum, to strengthen domestic processing capabilities. The investment is part of a broader effort to rebuild critical industrial capacity for defense systems.
- The DOE separately announced $16 million in grants to support critical mineral education programs at mining schools, addressing workforce shortages in the sector.
Immediate Impact of DOD Investment
The DOD’s $450 million allocation to The Elmet Group will fund upgrades to domestic tungsten processing facilities, enhancing supply chain resilience for defense applications. According to the DOD, tungsten is a foundational input for military systems due to its heat resistance, density, and durability. The mineral is used in missiles, aerospace components, naval systems, and electronics, including platforms like the F-35 fighter jet, Patriot missile systems, and Virginia-class submarines.
Assistant Secretary of Defense for Industrial Base Policy Mike Cadenazzi stated that the investment reflects the department’s commitment to rebuilding domestic industrial capacity. “Expanding domestic tungsten processing will strengthen supply chain resilience, support high-quality manufacturing jobs, and reinforce the production base behind essential defense systems,” Cadenazzi said in a Sept. 14 announcement.
DOE’s Workforce Development Initiative
The DOE’s $16 million in grants, administered through the PROSPECT Planning Prize, will provide up to $1 million per program to mining schools developing curricula for critical mineral extraction, processing, and recycling. The initiative targets workforce gaps identified in the Trump administration’s broader push to reduce U.S. dependence on foreign mineral supply chains, particularly those controlled by China.
Broader Policy Context
The latest investments follow a $3 billion federal commitment announced in August to expand domestic battery and critical mineral projects. Of that total, $1.4 billion was earmarked for a next-generation battery facility in Washington state, further emphasizing the administration’s focus on securing domestic supply chains for both defense and energy sectors.
Industry Role and Historical Context
The Elmet Group, a recipient of the DOD funding, has participated in over 100 DOD programs, including contributions to advanced defense platforms such as the Trident D5 missile and PrSM (Precision Strike Missile). The company’s role underscores the interconnected nature of domestic mineral supply chains and defense manufacturing.
Tungsten’s Strategic Importance
Tungsten’s unique properties—high melting point, strength, and corrosion resistance—make it indispensable for military and industrial applications. Beyond defense, it is used in drilling equipment, lighting, and high-temperature industrial tools. The U.S. currently imports a significant portion of its tungsten, primarily from China, which controls an estimated 80% of global supply.
Next Steps and Long-Term Goals
The DOD and DOE investments align with broader federal efforts to onshore critical mineral production and mitigate risks posed by geopolitical supply chain disruptions. Officials have not specified a timeline for full implementation but emphasize the need for rapid scaling to meet defense and industrial demands. Further funding announcements are expected as part of ongoing policy reviews.