Department of Defense buys equity stake in Portland company as part of $450M commitment to secure tungsten supply

U.S. Defense Department Invests $450 Million in Maine‑Based Metalmaker Elmet Group

Lewiston, Maine – April 18, 2026 – In a move that underscores the growing role of government‑backed private equity, the Department of Defense (DoD) committed $450 million to Elmet Group, a Portland‑based company that owns the Lewiston‑area Elmet Technologies plant. The investment is designed to expand the company’s production of tungsten and molybdenum—critical raw materials for U.S. military systems—and to secure a domestic supply chain amid rising geopolitical tensions.

The deal gives the DoD a 19.9% equity stake in Elmet Group, along with the right to appoint one independent board director and to designate a non‑voting observer. “This investment represents an important step toward securing a resilient supply of tungsten, a material that is critical to America’s defense, industrial, and economic future,” said Peter Anania, Elmet’s chief executive and chairman, in a statement released by the company.

Where the Money Will Be Spent

The agreement earmarks $165 million for upgrades at Elmet’s manufacturing facilities in Lewiston, Maine, as well as in Ohio and Michigan. The exact allocation among the three sites has not been disclosed. The remaining $285 million will be used broadly across the company to bolster production lines, expand workforce training, and enhance research and development of advanced alloys.

Elmet Technologies in Lewiston is a key supplier of high‑strength tungsten wire and molybdenum alloys used in U.S. defense programs. The company’s products are integral to Patriot and THAAD missile‑defense systems, the Javelin anti‑armor weapon, AEGIS combat‑system hardware, Trident II submarine missiles, and the Virginia‑ and Columbia‑class submarines.

A Shift in Federal Strategy

The DoD’s stake in a private firm is part of a broader trend that has accelerated under the Trump administration and continued under President Biden. According to the Cato Institute, the federal government has taken equity in more than 30 private companies in the past two years, a practice that was previously rare. The Center for Strategic and International Studies notes that this represents a departure from the post‑war “market‑based” approach to competitiveness that has traditionally guided U.S. economic policy.

Elmet Group’s own shareholders will retain majority control. The company, which went public earlier this year, will list on the Nasdaq under the ticker “ELMT.” The new equity arrangement will provide the firm with a steadier source of capital and a strategic partner committed to maintaining supply chain resilience.

Global Context

China accounts for roughly 80% of the world’s tungsten production and the majority of molybdenum output. In 2025, the Chinese government tightened export restrictions on both metals citing national‑security concerns and in response to Western tariffs. The move sent global prices for tungsten and molybdenum soaring, creating a scramble for alternative suppliers.

To address potential shortages, the U.S. government has already begun to reshape its procurement rules. Beginning January 1, 2027, defense contractors will be prohibited from sourcing tungsten metal powder and heavy alloys from China and other designated countries. The Elmet deal is intended to help the U.S. meet this new requirement by bolstering domestic production.

Industry Implications

Elmet’s advanced alloys are not only critical to defense; they also find use in semiconductors, aerospace, and heavy‑industry applications. The company’s supply chain is integral to projects such as the Artemis II lunar mission, which included parts manufactured in Lewiston. The partnership with the DoD could position Elmet as a primary U.S. source for high‑performance tungsten and molybdenum in the years to come.

“By securing a significant stake in Elmet, the Department of Defense is ensuring that the United States has the materials it needs for both current and future defense technologies,” said a DoD spokesperson. “The partnership also strengthens the domestic manufacturing ecosystem.”

Looking Ahead

Elmet Group’s CEO Peter Anania noted that the investment would allow the company to “expand production capacity, improve efficiency, and invest in new product lines that meet the evolving needs of U.S. defense and industry.” With a 19.9% ownership share, the DoD will have a direct voice in Elmet’s strategic direction, though the company’s board will continue to be majority‑controlled by private investors.

The deal reflects a broader shift toward strategic resource security in U.S. industrial policy, as the country seeks to reduce dependence on foreign sources for critical materials. Whether the partnership will achieve its goals remains to be seen, but for now, Lewiston’s Elmet Technologies has a new, high‑profile partner committed to its growth and to the resilience of the nation’s defense industrial base.