The Elmet Group secures long-term tungsten supply from Hemerdon mine to strengthen Western supply chains
Executive summary: The Elmet Group signed a long-term tungsten purchase agreement with Tungsten West for the Hemerdon mine. The deal secures supply from one of the largest tungsten deposits globally, aimed at reinforcing supply chain resilience in the US, UK, and allied nations.
Who is involved: The Elmet Group and Tungsten West.
Likely next: Scaling of extraction and processing operations at the Hemerdon mine to meet long-term contract obligations.
The Elmet Group's long-term off-take agreement with Tungsten West marks a strategic pivot toward securing critical mineral pipelines within allied nations. By securing rights to the Hemerdon mine, one of the world's most significant tungsten deposits, Elmet is addressing a structural vulnerability in Western industrial manufacturing. This move comes amidst intensified geopolitical efforts to de-risk supply chains, underscored by substantial U.S. Department of Defense investment in Elmet to stabilize the availability of materials essential for defense and high-tech sectors. This development shifts the supply dynamics for tungsten, a metal vital for aerospace, automotive, and defense applications. The ability to source material from a major Western deposit reduces dependence on geographically concentrated markets, potentially insulating manufacturers from geopolitical volatility. As Tungsten West moves toward production, the partnership between Elmet and the Hemerdon mine provides a blueprint for how private enterprise and government strategic interests can align to build resilient, localized mineral ecosystems. In the near term, this agreement will likely encourage further investment in non-traditional mining jurisdictions to ensure long-term resource autonomy for Western economies.
What's next — scenarios
Base Case: Successful Mine Ramp-up (60%)
Hemerdon mine reaches full production capacity, stabilizing tungsten supply in Western markets.
- Successful completion of operational ramp-up by Tungsten West
Upside: Accelerated Strategic Investment (25%)
Increased government/DOD funding accelerates extraction technologies and processing speed.
- New strategic investment announcements from allied defense departments
Downside: Operational Delays (15%)
Mining technical hurdles delay supply, increasing volatility in the tungsten market.
- Significant geological or logistical delays at Hemerdon
What to watch
- Tungsten West operational updates regarding Hemerdon mine production levels
- Further strategic capital infusions from Western defense or industrial departments
Timeline
- — The Elmet Group schließt langfristigen Wolfram-Abnahmevertrag mit Tungsten West für die Hemerdon-Mine (GlobeNewswire)
- — The Elmet Group nabs $2.5B in DOD agreements (Yahoo Finance)
- — Le Département de la Guerre des États-Unis réalise un investissement historique de 450 millions de dollars dans The Elmet Group afin de sécuriser la chaîne d’approvisionnement américaine en tungstène (GlobeNewswire)
Analysis — what this means
Sectors affected
- Critical minerals mining
- Defense manufacturing
- Industrial metal supply chains
Historical parallels
- The Elmet Group's $2.5B DOD agreements (2026)
- US Department of War $450M investment in Elmet Group for tungsten security (2026)
Key entities
Sources
- The Elmet Group schließt langfristigen Wolfram-Abnahmevertrag mit Tungsten West für die Hemerdon-Mine — GlobeNewswire
- The Elmet Group nabs $2.5B in DOD agreements — Yahoo Finance
- Le Département de la Guerre des États-Unis réalise un investissement historique de 450 millions de dollars dans The Elmet Group afin de sécuriser la chaîne d’approvisionnement américaine en tungstène — GlobeNewswire