Backed by $450M defense deal, US' Elmet acquires 5% in Vietnam's tungsten producer MSR
Elmet Group, backed by a $450M U.S. defense deal, will buy a 4.99% stake in Vietnam's Masan High-Tech Materials (MSR) for $124.75M, alongside a multi-year supply agreement. The deal, pending approval, values MSR at $2.5B and includes an 8-year supply contract worth $1.5B in revenue. MSR reported H1 2026 revenue of $423M and net profit of $83M, guiding to $1.4B revenue and $233M net profit for the year.
How this was made
The 30-second read
Why it matters
The acquisition gives Elmet a foothold in Vietnam's largest non‑Chinese tungsten refiner, while providing Masan High‑Tech Materials with US defense‑backed capital and market access.
Market read
A strategic cross‑border partnership in a critical mineral, likely to influence both US defense supply chains and Vietnam's mining sector.
What to watch
Currency risk and the long-term price volatility of tungsten could affect the financial returns of the partnership.
Background
The US Department of War recently invested $450M in Elmet, aiming to secure domestic tungsten production and reduce dependence on China.
Market effects
Strengthens US tungsten supply chain and may reduce reliance on Chinese imports, benefiting the broader materials sector.
Boosts Vietnam's mining sector visibility and could attract foreign investment to the Ho Chi Minh Stock Exchange.
Highlights geopolitical shift in critical minerals, potentially influencing global defense and AI hardware supply chains.
Counterpoint
The deal may face regulatory delays or integration challenges, limiting upside for both parties.
Key entities
- CompanyElmet Group
US tungsten producer receiving $450M from the US Department of War.
- CompanyMasan High‑Tech Materials
Vietnamese tungsten refiner listed on UPCoM under the code MSR.
