MSR Partner Elmet Wins USD 2B US Defense Tungsten Contract

Overview

A unit of Elmet Group (NASDAQ: ELMT), a strategic partner of Masan High-Tech Materials (MSR), has been awarded a contract worth approximately USD 2 billion by a US Department of Defense agency to rebuild the National Defense Stockpile and strengthen the American tungsten supply chain. MSR, one of the largest tungsten producers outside China, is named in the report as a key partner in Elmet’s global supply chain. The award matters for MSR because it links Vietnam’s Núi Pháo polymetallic mine to a US-backed critical-minerals procurement program.

Key Facts

• The US Department of Defense awarded a contract of about USD 2 billion to an Elmet Group member unit, reported by Reuters on 14 September.
• The contract carries a guaranteed disbursement commitment of USD 150 million, covering supply of ore, concentrate and sodium tungstate for strategic programs.
• Elmet separately raised about USD 450 million from the US Department of Defense through preferred shares and warrants to fund plant expansion in Maine, Michigan and Ohio.
• Elmet Group, founded in 1929 and headquartered in Maine, describes itself as the only 100% US-owned vertically integrated producer of pure tungsten and molybdenum products and high-temperature alloys.
• Elmet shares rose more than 30% after the deal was announced.
• Vietnam holds approximately 309,407 tonnes of WO3-equivalent tungsten resources and reserves, mostly at the Núi Pháo polymetallic mine in Thái Nguyên, operated by MSR with designed capacity of 3.5 million tonnes of run-of-mine ore per year.
• Potential resources at the extended Núi Pháo area and Núi Chiếm are estimated at up to 115 million tonnes of polymetallic ore, supporting 20-30 years of further mining and processing.
• MSR closed at VND 48,300 on 15 September 2026.

What Happened

According to Reuters, a US Department of Defense unit formally awarded a package worth about USD 2 billion to a member unit of Elmet Group on 14 September, aimed at rebuilding the National Defense Stockpile and reinforcing the country’s tungsten supply chain. The contract includes a guaranteed disbursement commitment of USD 150 million and covers the supply of ore, concentrate and sodium tungstate for strategic programs. In parallel, Elmet mobilized roughly USD 450 million from the Pentagon through the issuance of preferred shares and warrants, directly financing expansion of production facilities in Maine, Michigan and Ohio.

The report states that MSR, listed on UPCOM, is one of the world’s largest tungsten producers outside China and one of the important partners in Elmet’s global supply chain. It notes that the Pentagon’s multibillion-dollar commitment comes as the US faces a shortage of operating tungsten mines, forcing it to urgently seek alternative supply sources and reduce dependence on external markets amid tightening global controls on mineral trade. Tungsten, with its record melting point and superior hardness, is described as irreplaceable in aerospace, high-tech and advanced defense equipment. The article does not disclose the value of any direct MSR contract or the volume MSR would supply under the arrangement.

Market Context

MSR trades on UPCOM, Vietnam’s unlisted public company market, and closed at VND 48,300 on 15 September 2026. The stock sits in the basic resources sector, where Vietnamese materials names have been sensitive to global critical-minerals policy and to news flow around Western efforts to diversify away from Chinese tungsten supply. The Elmet award is a foreign-demand signal for the tungsten chain rather than a direct earnings event for MSR, and the article does not quantify any revenue accruing to the Vietnamese producer. The report also does not provide MSR share price reaction to the news.

Strategic Significance

The core of the thesis is processing depth, not resource ownership. The article notes that MSR, through Masan Tungsten Company Limited (MTC), has mastered hydrometallurgy and refining to produce high-purity lines such as ammonium paratungstate (APT) and tungsten oxide, which is what allows a Vietnamese producer to move deeper into the value chain of industrial groups such as Elmet. A US defense-backed effort to rebuild tungsten stockpiles and diversify away from Chinese supply creates a structural, policy-driven demand channel for non-China refined tungsten capacity. For long-term investors, the question is whether MSR converts this strategic positioning into contracted volumes and pricing power, rather than remaining an upstream ore and concentrate supplier.

What to Watch

• Any MSR disclosure on direct supply volumes, contract values or offtake terms with Elmet or US defense-linked buyers.
• Elmet’s production ramp timelines at the Maine, Michigan and Ohio facilities, which determine feedstock demand.
• US Department of Defense stockpile procurement updates and further critical-minerals awards.
• MSR quarterly results for APT and deep-processing product volumes and margins.
• Vietnamese policy or licensing developments at Núi Pháo and the extended Núi Pháo and Núi Chiếm areas.