RTX, Almonty Industries, Elmet Group – This Is Fundamental for the West

RTX: USD 45 Billion for New Missiles

The US government, in particular, is one of the leading customers in the field of innovative weapons systems. The industrial conglomerate RTX, through its defense division Raytheon, recently signed two extensive supply contracts with the US government totaling a maximum of over USD 45 billion.

In the first framework agreement, the US Department of Defense agreed with Raytheon, a subsidiary of RTX, on a delivery worth up to USD 20.7 billion. This contract focuses on the accelerated production of AMRAAM missiles. The Pentagon is thus responding to depleted ammunition reserves, which have been heavily strained by weapons deliveries to allies as well as by the conflicts in Ukraine and the Middle East. The weapons systems are used in both air combat and ground-based defence systems. The agreement is part of a government initiative to strengthen defence production. RTX has already nearly doubled production of these missiles in 2025 and is targeting an annual output of at least 1,900 units. However, final budget approval from the US Congress is still pending for large-scale investments in the supply chains.

In addition, Raytheon received another contract for the production of SM-6 interceptor missiles. This contract is valued at up to USD 24.4 billion and runs for five years, with a contractual option to extend for an additional two years. The SM-6 system is known for its versatility and is used for routine air defense, engaging surface targets, and defending against ballistic missiles. The weapon can be launched from both naval vessels and land-based platforms. To meet the US Navy's high procurement volumes, the company is currently investing heavily in additional personnel and in the automation of its production lines.

Almonty Industries: From Project Developer to Producer

For Almonty Industries, the timing could hardly be better. After years of development, the Sangdong mine in South Korea has taken the decisive step. The facility received its final operating permit, and tungsten concentrate was subsequently produced in Sangdong for the first time since 1993. The project is now becoming an actual producer at a time when Western nations are seeking to reduce their dependence on China for critical raw materials.

Sangdong is one of the most significant tungsten projects outside of China. A large portion of the planned production is already secured long term. The offtake agreement with Global Tungsten & Powders, part of the Plansee Group, was extended to 21 years and covers more than 90% of Phase I production. Once ramp-up is complete, at least 210,000 MTU of tungsten concentrate are to be delivered annually. Based on the APT price in effect at the time of the contract amendment, Almonty estimated the resulting annual contract revenue at approximately USD 490 million.

And Phase I is just the beginning. Phase II is expected to expand processing capacity significantly. At the same time, Almonty is further expanding its position along a westward-oriented tungsten supply chain. This includes operations in Portugal and Spain as well as new strategic initiatives in Rwanda. As a result, the company is increasingly evolving from a single mine operator into a more diversified tungsten platform.

For investors, this fundamentally changes the story. For years, the central risk was whether Sangdong would even reach production. This milestone has been reached. Now the focus is on the ramp-up, supply volumes, and cash flows.

If rising Western demand, high tungsten prices, and the production ramp-up all come together as planned, Almonty could grow to a whole new level. Sangdong is thus entering the market at precisely the moment when an independent tungsten supply is becoming increasingly valuable from a strategic perspective.

Elmet Group: Washington Is Investing Billions in Tungsten

Tungsten is an essential raw material because of its high density and heat resistance. Elmet is currently focusing its strategy specifically on reducing the vulnerability of its Western corporate customers to global supply bottlenecks. By linking its own processing capacities with contractually secured raw material sources, the company ensures an end-to-end value chain from ore mining to the finished precision component.

To secure long-term access to raw materials, the Elmet Group has agreed to acquire a stake in the Vietnamese raw materials group Masan High-Tech Materials. Elmet is acquiring a 4.99% minority stake for approximately USD 125 million in the company, which operates the major Nui Phao mine. The agreement includes an eight-year supply contract for approximately 1,250 metric tons of tungsten trioxide equivalent annually, with a projected transaction volume of USD 1.5 billion. In addition to a seat on the supervisory board, Elmet will assume an advisory role in Masan High-Tech Materials' planned initial public offering on the Ho Chi Minh City Stock Exchange.

The US government has also recently approached Elmet Technologies. The Defense Logistics Agency has entered into a firm agreement worth USD 36 million to supply high-strength molybdenum and tungsten alloys. These are primarily intended for use in the aerospace industry and in the manufacture of aircraft engines. In addition, Elmet is entering into a framework agreement for the long-term replenishment of national defense reserves. These contracts follow a previously awarded US government grant of USD 450 million, which is intended to strengthen domestic production capacity.

While RTX demonstrates how rapidly military demand is growing, Elmet is building out the American processing chain. Positioned in between is Almonty Industries, which has secured a new major source of tungsten outside of China. The battle for this strategic raw material has thus reached a new level.