Elmet wins $36m DLA contract for refractory aerospace alloys
Elmet Technologies, the Maine-based refractory metals manufacturer and wholly owned subsidiary of NASDAQ-listed The Elmet Group (ELMT), has been awarded a $36 million contract by the Defense Logistics Agency to supply high-performance molybdenum and tungsten materials to the US National Defense Stockpile. The award covers titanium-zirconium-molybdenum alloy billets, bar stock and ingots, alongside specialised molybdenum and tungsten wire used in jet engine components and other demanding aerospace applications.
The contract is separate from the $2 billion IDIQ award announced on 14 September 2026, under which Elmet Technologies is supplying tungsten concentrates and sodium tungstate to the same stockpile. That earlier contract carries a guaranteed funded commitment of $150 million against its $2 billion ceiling value. Together, the two awards reflect a broadening of Elmet's role from upstream concentrate supply into finished, high-value precision products.
The contract
Derek Fox, President of The Elmet Group's Critical Materials Components Division, said the award demonstrates the company's depth across the refractory metals value chain, from powder processing through to finished mill products. Elmet's manufacturing processes include both press-and-sinter and arc-cast routes for TZM billets and bar, and precision wire drawing to tight dimensional, electrical and mechanical specifications.
TZM is a molybdenum alloy hardened with small additions of titanium and zirconium. Its ability to retain strength at temperatures well above the threshold for pure molybdenum makes it a standard material in aerospace environments where both heat and mechanical stress are extreme. Elmet says it has served aerospace, defence and industrial customers for close to a century, holding ISO 9001, AS9100 and ITAR registrations across its three US facilities.
The Elmet Group also noted a $450 million committed investment from the US Department of War, announced alongside the September IDIQ contract, intended to expand domestic production capacity.
Market context
Global supply of molybdenum and tungsten has historically been concentrated in China, which accounts for the majority of world tungsten mine output and refining capacity. That dependence has driven sustained US government interest in building domestic processing and stockpiling capability, reflected in both the National Defense Stockpile programme and broader critical-materials provisions within recent defence authorisation legislation.
Elmet positions itself as the only US-owned, vertically integrated tungsten and molybdenum manufacturer, a status that gives it a structural advantage in defence procurement where ITAR compliance and domestic-source requirements narrow the supplier pool considerably. Competing on purely commercial terms in the refractory metals space is difficult for any firm without equivalent vertical integration, since upstream powder quality directly affects downstream product performance.
The DLA Strategic Materials programme has been expanding its contracted supply base as policymakers move to reduce single-source exposure across a range of critical minerals. For Elmet, the sequential contract awards suggest a deliberate effort by the agency to lock in domestic capacity before geopolitical or supply-chain conditions tighten further. Investors will be watching for further task orders under the IDIQ ceiling, as well as evidence that the company's upstream mining and offtake partnerships are translating into consistent feedstock supply for its US manufacturing lines.