US tungsten producer Elmet to acquire 4.99 percent stake in Vietnam’s MSR for $124.75 M

US tungsten producer The Elmet Group, which received a $450 million investment from the US Department of War in mid-September, is set to acquire a 4.99% stake in Vietnam-based Masan High-Tech Materials for $124.75 million, alongside a multi-year supply agreement.

Elmet and Masan High-Tech Materials, which trades on Vietnam’s Unlisted Public Company Market (UPCoM) under the ticker MSR, announced the cooperation in separate statements on Thursday. The transaction will include a long-term supply arrangement between the two companies.

The deal remains subject to regulatory and corporate approvals, with completion expected in early October.

First major deal following Pentagon investment

The transaction marks Elmet’s first significant move since receiving the US government investment.

Under the investment announced by the Department of War on September 14, the US department will acquire up to a 19.9% ownership stake in Elmet.

Elmet plans to use the funding to expand tungsten manufacturing capacity in the US and establish partnerships with mining and processing companies across the US, Australia and Spain. The broader strategy is aimed at reducing American dependence on Chinese tungsten supplies.

Separately, a contract with the Defense Logistics Agency, valued at up to $2 billion, covers tungsten supplies for the US national stockpile.

The investment in MSR represents Elmet’s first equity stake in an overseas tungsten producer since receiving the US government funding. The transaction implies a valuation of approximately $2.5 billion for Masan High-Tech Materials.

Under the agreement, Elmet will receive a seat on MSR’s board and assist the company with its planned transition from Vietnam’s UPCoM market to the Ho Chi Minh Stock Exchange, according to Elmet.

Multi-year tungsten supply agreement

Elmet and MSR have also entered into supply agreements extending beyond eight years. Under the arrangement, MSR will supply tungsten products and provide conversion services from its Vietnamese operations.

The agreement covers approximately 1,250 tonnes of tungsten-trioxide equivalent annually. At current prices, MSR estimates the initial term could generate around $1.5 billion in aggregate gross revenue.

Tungsten is prized for its high hardness and ability to withstand extreme temperatures, making it important for applications spanning munitions, aerospace, semiconductors and AI hardware. China accounts for an estimated 80-85% of global tungsten supply and tightened export controls on the metal in 2025. MSR is the largest tungsten refiner outside China.

MSR reports strong first-half performance

Masan High-Tech Materials generated approximately $423 million in revenue during the first half of 2026 and recorded net profit of $83 million.

For the full year, the company expects revenue of around $1.4 billion and net profit of approximately $233 million.

MSR operates the Nui Phao mine and a tungsten-processing facility in Vietnam’s Thai Nguyen province. The company is majority-owned by Masan Group, a Vietnamese conglomerate with businesses spanning consumer goods and retail.