Magellan Aerospace Profits Surge 72% Driven by Defense Sector Growth

Magellan Aerospace

Magellan Aerospace profits jumped 72% to C$10.8 million ($7.7 million) in the first quarter, demonstrating strong performance across commercial and defense segments. The Canadian aerospace components producer reported total revenue growth of 11% to C$260.9 million ($186.2 million) compared to the same period last year. Magellan Aerospace profits benefited from diversified revenue streams, with 62% from commercial customers and 38% from defense sector contracts.

Supply Chain Challenges Impact Commercial Aerospace Operations

Commercial aerospace production faces significant headwinds as supply chain delays affect major customers including Boeing and Airbus. Magellan expects these supply chain disruptions could persist throughout 2025, potentially reducing commercial sales volumes. Meanwhile, US tariffs threaten to delay deliveries and slow overall commercial aerospace production, creating additional challenges for Magellan Aerospace profits in the commercial segment.

However, defense sector demand shows promising growth potential due to increasing global conflicts and trade tensions. European defense buyers have shifted away from US products due to tariff concerns, potentially boosting demand for Magellan's defense offerings. Therefore, defense spending increases could offset commercial aerospace headwinds and support sustained Magellan Aerospace profits growth.

Strategic Partnerships Expand Global Manufacturing Footprint

Magellan secured key contracts and partnerships to strengthen its market position across multiple regions. The company signed an amendment with GE Aerospace to produce engine components for the Korean KF-21 aircraft program on March 6th. As a result, this contract diversifies Magellan's defense portfolio beyond traditional North American and European markets.

Furthermore, Magellan signed a memorandum of understanding with aerospace manufacturer Aequs to explore joint sand casting facility construction in India. This strategic partnership could provide cost-effective manufacturing capabilities while accessing India's growing aerospace market. Consequently, these international expansions support long-term Magellan Aerospace profits growth through geographic diversification.

The company's revenue distribution reflects its global reach, with 40% from Canada, 31% from Europe, and 29% from the United States. This balanced geographic exposure helps mitigate regional market risks while capitalizing on defense spending increases worldwide.

The Metalnomist Commentary

Magellan's strong Q1 performance highlights the resilience of specialized aerospace component manufacturers amid supply chain disruptions and geopolitical tensions. The company's strategic pivot toward defense contracts and international partnerships positions it well to capitalize on global defense spending increases while managing commercial aerospace headwinds effectively.

Enovix Targets Defense Industry Growth Amid Rising Demand for Secure Battery Supply Chains

Enovix

US-Based Battery Maker Leverages Allied Supply Chain Compliance for Competitive Edge

Drone and Defense Sector Inquiries Rise Post-Election

Enovix, a US-based battery manufacturer, is actively pursuing growth in the defense industry as it seeks to capitalize on its robust supply chain and technological strengths. The company reported a $222 million loss in 2024, widening from the $214 million loss in 2023, but sees clear momentum in new market opportunities.

Defense Sector Interest Accelerates Revenue Shift

A significant portion of Enovix's 2024 revenue now comes from conventional graphite battery products supplied to the defense sector. According to CEO Raj Talluri, the firm is prioritizing segments with acute battery constraints or supply chain requirements that play to Enovix’s strengths. Although Enovix remains committed to its core markets in smartphones, wearables, and laptops, the company is adapting to shifting demand.

Following the US elections in November, Enovix observed a marked increase in interest from drone manufacturers and defense suppliers searching for battery solutions that meet allied-country supply chain requirements. These requirements have become critical amid global security concerns and evolving trade policies.

Global Production Footprint Shields Against Trade Headwinds

Enovix manufactures batteries in South Korea and Malaysia, with research and development based in India. Talluri noted that both manufacturing locations are highly favorable for US-bound shipments, minimizing exposure to international trade friction. This diversified production base provides Enovix with stability and ensures compliance with allied procurement standards—a crucial advantage for defense-related contracts.

The company’s evolving strategy highlights a broader shift as defense customers demand not just advanced battery technology, but also secure, traceable supply chains. Enovix’s positioning in this arena could be key to offsetting continued financial losses and unlocking future growth.

Elmet Defense Contract Supports US Molybdenum Manufacturing Expansion

Elmet Technologies

Elmet defense contract funding will support expanded US production of molybdenum and other refractory metal products used in defense applications. The Department of Defense awarded the company $4.3mn to improve production capabilities and increase manufacturing capacity.

Elmet defense contract support is focused particularly on molybdenum products used in modern defense interceptor programs. The investment strengthens a domestic supply chain for materials that must perform under extreme heat, mechanical stress and demanding operating conditions.

Elmet defense contract also reflects broader US efforts to secure strategic processing capacity inside the country. Molybdenum is important not only as an alloying metal, but also in high-performance components where heat resistance and strength are critical.

The company produces pure molybdenum products and molybdenum-based alloys at its Lewiston, Maine, facility, with additional manufacturing operations in Michigan and Ohio.

Molybdenum Capacity Supports Defense Interceptor Programs

Molybdenum is valued for its high melting point, strength at elevated temperatures and resistance to thermal degradation. These properties make it important for aerospace, defense, electronics and other advanced industrial applications.

Interceptor systems require materials capable of maintaining performance under intense thermal and mechanical conditions. That creates demand for tightly controlled refractory metal products rather than standard industrial grades.

Elmet plans to use the new funding to improve existing production capabilities and expand capacity. This could strengthen output of both pure molybdenum products and engineered molybdenum alloys.

The contract also highlights the importance of downstream manufacturing. Securing raw molybdenum alone does not guarantee defense supply security unless domestic producers can convert it into qualified components and material forms.

For the US defense sector, expanding domestic processing reduces reliance on imported finished refractory metal products and gives manufacturers greater control over quality, traceability and production schedules.

Refractory Metals Gain Strategic Supply Chain Importance

Elmet operates three US manufacturing sites in Lewiston, Maine, Coldwater, Michigan, and Euclid, Ohio. That footprint gives the company a broader domestic platform for refractory metal processing.

The latest investment strengthens this network at a time when governments are placing greater emphasis on domestic production of strategic materials used in defense systems.

Refractory metals such as molybdenum are especially sensitive because production volumes are relatively small compared with major industrial metals, while qualification requirements can be high.

This makes manufacturing capacity itself a strategic asset. Even modest disruptions can affect specialized defense programs when alternative qualified suppliers are limited.

The contract therefore carries significance beyond its $4.3mn value. It supports the retention and expansion of technical capability inside the US defense industrial base.

The Metalnomist Commentary

The Elmet award shows that defense supply security depends on qualified processing capacity as much as raw material access. Molybdenum may be a small-volume market, but its role in high-temperature defense systems gives domestic manufacturing outsized strategic value.

Elmet Defense Contract Expands US Molybdenum Manufacturing Capacity

Elmet Technologies

Elmet defense contract funding will support expanded US production of molybdenum and other refractory metal products used in defense applications. The Department of Defense awarded the company $4.3mn to improve production capabilities and increase manufacturing capacity.

Elmet defense contract support is focused particularly on molybdenum products used in modern defense interceptor programs. The investment strengthens a domestic supply chain for materials that must perform under extreme heat, mechanical stress and demanding operating conditions.

Elmet defense contract also reflects broader US efforts to secure strategic materials and processing capacity inside the country. Molybdenum is important not only as an alloying metal but also in high-performance components where heat resistance and strength are critical.

The company produces pure molybdenum products and molybdenum-based alloys at its Lewiston, Maine, facility, with additional manufacturing operations in Michigan and Ohio.

Molybdenum Capacity Supports Defense Interceptor Programs

Molybdenum is valued for its high melting point, strength at elevated temperatures and resistance to thermal degradation. These properties make it important for aerospace, defense, electronics and other advanced industrial applications.

Interceptor systems require materials capable of maintaining performance under intense thermal and mechanical conditions. That creates demand for tightly controlled refractory metal products rather than standard industrial grades.

Elmet plans to use the new funding to improve existing production capabilities and expand capacity. This could strengthen output of both pure molybdenum products and engineered molybdenum alloys.

The contract also highlights the importance of downstream manufacturing. Securing raw molybdenum alone does not guarantee defense supply security unless domestic producers can convert it into qualified components and material forms.

For the US defense sector, expanding domestic processing reduces reliance on imported finished refractory metal products and creates more control over quality, traceability and production schedules.

Refractory Metals Gain Strategic Supply Chain Importance

Elmet operates three US manufacturing sites in Lewiston, Maine, Coldwater, Michigan, and Euclid, Ohio. That footprint gives the company a broader domestic platform for refractory metal processing.

The latest investment strengthens this network at a time when governments are placing greater emphasis on domestic production of strategic materials used in defense systems.

Refractory metals such as molybdenum are particularly sensitive because production volumes are relatively small compared with major industrial metals, while qualification requirements can be high.

This makes manufacturing capacity itself a strategic asset. Even modest disruptions can affect specialized defense programs when alternative qualified suppliers are limited.

The contract therefore carries significance beyond its $4.3mn value. It supports the retention and expansion of technical capability inside the US defense industrial base.

The Metalnomist Commentary

The Elmet award shows that defense supply security depends on qualified processing capacity as much as raw material access. Molybdenum may be a small-volume market, but its role in high-temperature defense systems gives domestic manufacturing outsized strategic value.

Factorial Solid-State Battery Cells Enable Extended Drone Range for Avidrone

Factorial Energy

Factorial solid-state battery cells achieved a milestone deployment as the US battery technology startup shipped its first FEST® (Factorial Electrolyte System Technology) lithium-metal battery cells to Canada's Avidrone Aerospace. The Factorial solid-state battery cells deliver up to 50% higher energy density compared to conventional lithium-ion batteries, enabling extended range capabilities for cargo drones in defense, commercial, and emergency response applications.

Revolutionary Energy Density Transforms Drone Performance

Factorial solid-state battery cells provide up to 50% greater energy density than conventional lithium-ion batteries, unlocking longer flight times, greater payload capacity, and expanded mission range. Initial modeling by Avidrone suggests that FEST® technology could double the range of its aircraft for a given payload, a transformational upgrade for drone-based delivery, surveillance, and emergency response. The proprietary FEST technology utilizes solid-state lithium-metal chemistry optimized for high-power, lightweight applications essential for next-generation unmanned aerial vehicles.

Meanwhile, Avidrone will integrate Factorial's solid-state cells into its high-endurance cargo drone platform for demonstration flights focused on evaluating energy efficiency, power discharge, payload capacity, and range under real-world operating conditions, including high altitudes, variable temperatures, and sustained vibrations. The testing program validates performance under operational stresses typical in tactical and industrial drone missions, providing critical data for commercial deployment.

Strategic Market Entry Addresses Defense Supply Chain Security

However, the partnership represents more than technological advancement, addressing growing demand for domestically sourced battery solutions in defense and aerospace sectors. "This delivery is a major step forward in bringing our battery platform to the skies," said Siyu Huang, CEO of Factorial. "Drones are not just an emerging market – they're a strategic priority for national defense, critical logistics, and infrastructure resilience". The US-based manufacturing platform supports defense requirements for secure, American-made energy storage solutions.

Therefore, Avidrone develops and manufactures unmanned rotorcraft which can lift payloads in excess of 50lbs over ranges of 50 miles and autopilot control systems for government, defense, and commercial applications. "In unmanned systems, weight equals range – and range defines the mission," said Scott Gray, Founder and CEO of Avidrone Aerospace. "Factorial's solid-state cells give us a critical edge in endurance and payload, unlocking new capabilities for defense, logistics, and beyond".

Expanding Market Opportunities Beyond Electric Vehicles

Furthermore, while Factorial maintains its commitment to electric vehicle markets through partnerships with Stellantis, Mercedes-Benz, and other automotive manufacturers, the drone sector represents a strategically aligned growth market.

Demand for high-performance, domestically developed batteries in drones presents an opportunity to engage early customers, accelerate manufacturing maturity, and apply critical performance feedback. These capabilities transfer directly to Factorial's EV roadmap while supporting defense sector requirements.

As a result, the global unmanned aerial systems market expansion provides substantial opportunities for advanced battery technologies. Market forecasts indicate drone sector growth of $36.1 billion between 2024 and 2028, with military applications alone projected to reach $65 billion by 2032. Factorial's entry positions the company advantageously within this rapidly expanding market while demonstrating practical applications for solid-state battery technology beyond traditional automotive applications.

The Metalnomist Commentary

Factorial's entry into drone applications demonstrates how solid-state battery technology can unlock transformational performance improvements in weight-critical applications, with the potential to double aircraft range representing a quantum leap in unmanned systems capabilities. The strategic timing aligns with growing demand for domestically sourced defense technologies, positioning Factorial to capture dual-use market opportunities while advancing its core electric vehicle technology through real-world aerospace validation.

New Engine Builds and Legacy Parts Fuel Robust Titanium Demand in Aerospace and Defense Markets

Demand for titanium is on an upward trajectory, driven primarily by the aerospace sector’s ongoing need for current-generation engines and a growing demand for spare parts in legacy aircraft programs, delegates at the International Titanium Association (ITA) conference learned Monday. The aerospace sector’s consumption of titanium is set to expand at a compounded annual growth rate (CAGR) of 10.5 percent over the next five years, according to Marty Pike, president of ATI’s specialty materials unit. This growth reflects a convergence of factors, including new engine builds, heightened maintenance needs, and strategic defense applications.

Driving Forces Behind Aerospace Demand

Increasing build rates among airframe manufacturers and a rise in maintenance, repair, and overhaul (MRO) services are key forces behind titanium’s expected growth, particularly as Airbus and Boeing face backlogs totaling over 14,000 aircraft through 2034. CFM International's LEAP engines and Pratt & Whitney’s geared turbofan engines remain the primary drivers for current-gen engine demand, with production of these platforms expected to increase by 53 percent over the next two years.

"This creates significant opportunity for not only standard-quality titanium but also premium-quality titanium," Pike noted. Titanium is essential in engine applications, including compressor discs, turbine blades, and fasteners, and plays a crucial role in optimizing aircraft performance.

Another notable shift is the doubling effect seen in the demand for spares and new builds, as airlines keep older fleets in operation longer and maintenance cycles accelerate. Historically, spares represented 25 percent of material demand, but this figure could increase to 30-50 percent, driven by intensified MRO cycles.

Titanium's Strategic Role in Defense Markets

Titanium's utility extends into the defense sector, where geopolitical factors continue to fuel demand. As defense budgets surge—reaching a record $2.44 trillion globally in 2023, according to the Stockholm International Peace Research Institute—the metal is increasingly utilized in fighter jets, drones, and other high-performance military equipment. Sam Stiller, Howmet Aerospace's vice president of engineered structures, emphasized that titanium's lightweight and high-temperature resilience make it ideal for stealth applications and advanced drone programs. The F-35 fighter jet, a prime example, comprises 20 percent titanium by weight.

Challenges and Prospects Amid Global Supply Constraints

While titanium demand in aerospace and defense remains robust, panelists cautioned that constrained production rates and supply chain bottlenecks present challenges for manufacturers. Nonetheless, the defense industry’s demand, along with increased aerospace production rates, continues to underscore titanium’s long-term growth prospects in critical sectors.

Boeing defense strike replacement workers plan tests US jet program resilience

Boeing defense strike

Boeing defense strike replacement workers are now central to the company’s response to a protracted machinist walkout. The aerospace group plans to hire permanent staff at key defense facilities where union members have been on strike since early August. As a result, Boeing defense strike replacement workers could shape production stability across several US fighter and tanker programs.

Union standoff drives Boeing defense strike replacement workers strategy

Boeing’s decision to recruit Boeing defense strike replacement workers follows weeks of deadlock with the IAMAW union. More than 3,200 machinists rejected Boeing’s latest four year contract offer and walked out on 4 August. The company insists the proposal is the best local deal it has ever presented to the union.

One of the sharpest flashpoints is a $5,000 ratification bonus that Boeing withdrew after the original offer expired. Striking workers compare this figure with the $12,000 bonus paid to commercial segment staff in 2023. Therefore they see the gap as evidence that defense workers receive weaker recognition despite supporting critical national programs.

Boeing has already posted job openings and scheduled a job fair to attract new recruits. However, the pace of training and certification remains uncertain in a highly specialised aerospace environment. Any delay in qualifying Boeing defense strike replacement workers could prolong disruption rather than resolve it.

Fighter jet programs face execution and supply chain risks

The strike directly affects Boeing’s defense facilities in Missouri and Illinois, which support multiple fighter and unmanned platforms. These sites build and sustain the F 15, F/A 18 and T 7A Red Hawk, as well as the MQ 25 Stingray. Consequently, extended labour unrest and reliance on Boeing defense strike replacement workers could ripple through US and allied air forces.

To keep lines running, Boeing has already redeployed non union staff from other locations into the affected plants. This move preserves minimal operations but may not match the productivity and institutional knowledge of long serving machinists. Meanwhile, program partners and defense customers will watch for schedule slippage, cost increases and quality concerns.

The company now faces a complex trade off between preserving bargaining leverage and protecting critical delivery milestones. If talks remain frozen, the longer term cost of higher turnover and training may outweigh any near term wage savings. Therefore, management and union leaders both carry responsibility for avoiding damage to high profile defense exports and readiness.

The Metalnomist Commentary

Boeing’s labour standoff shows how concentrated skills and tight defense timelines amplify industrial relations risk. For governments and suppliers, this episode underscores the need to diversify production, deepen talent pipelines and strengthen crisis playbooks. If Boeing resolves the dispute while protecting quality, the outcome could redefine labour strategy across the wider aerospace sector.

Defense & Security 2025 turns Bangkok into Asia’s defense crossroads

Defense & Security 2025

Defense & Security 2025 opens in Bangkok with record scale and deep strategic signaling. Defense & Security 2025 hosts 580 companies, 28 national pavilions, and 26,000 visitors. Defense & Security 2025 runs 10–13 November at IMPACT under Thailand’s defense ministry.

China’s strategic push shapes the exhibition’s competitive landscape. Thailand has fielded Chinese VT-4 tanks, VN-1 IFVs, drones, and QBZ-195T rifles. Thailand has in recent years purchased more Chinese arms by value than US systems. Therefore, the halls highlight Chinese offerings across air, land, and maritime domains. Meanwhile, invited delegations exceed 350 senior officials from 35 countries.

Scale and content reinforce the show’s Asia-Pacific weight. Exhibits span missiles, tanks, UAVs, ships, satellites, and secure comms. Exhibitors also show electronic warfare, cyber, and counter-terror systems. As a result, the event functions as a tri-service marketplace with policy dialogue. Twenty seminars and conferences convene industry and government experts.

Defense & Security 2025, China Sector

China’s export expansion meets Thailand’s modernization

China’s export pattern concentrates on Asia and Oceania buyers. Asia-Oceania take 77% of Chinese arms exports, with Africa at 14%. Pakistan accounts for 63% of Chinese exports, followed by Bangladesh and Thailand. Consequently, regional procurement pipelines increasingly feature Chinese platforms and components.

Thailand’s modernization plan advances across multiple suppliers. The cabinet approved a phased purchase of 12 Gripen E/F jets over a decade. The estimated cost is 60 billion baht for the Gripen program. Thailand’s 2024 defense budget totals 198.3 billion baht, up 2% year on year. Therefore, procurement mixes US Strykers, Chinese VN-1s, and Israeli UAVs.

ASEAN’s rearmament cycle accelerates in parallel. Indonesia’s defense budget reached $13.2 billion in 2023. Singapore’s spending reached $13.4 billion in 2023 after a 10% rise. Singapore is acquiring eight F-35B fighters to expand airpower. Vietnam is upgrading naval capabilities to protect maritime claims.

Defense & Security 2025

Global spending pledges and exporter dynamics reframe supply chains

NATO members set a higher ambition at the June 2025 summit. Members committed to invest 5% of GDP in defense. This marks a major uplift from the earlier 2% benchmark. As a result, delivery slots, components, and workforce will tighten globally.

Exporter shares define competitive pressures through 2020–24. The United States held 43% of global arms exports. France and Russia followed in second and third positions. China accounted for 5.9% and ranked fourth. Therefore, Chinese vendors face strong US and European competition in premium segments.

Defense & Security 2025 serves more than a sales floor. Organizers prioritize invited government buyers and curated agendas. Discussions focus on autonomy, AI ISR, resilient logistics, and cyber. Exhibitors pitch lifecycle packages with training and local sustainment. Co-production, MRO, and data rights feature in many deal rooms.

The Metalnomist Commentary 

Bangkok’s show captures a decisive shift toward diversified sourcing and localization. Expect tougher offset terms, co-development, and data-centric sustainment as ASEAN hedges suppliers. Financing creativity will separate winners from followers in the next procurement wave.

US DoD Invests in Domestic Niobium Production to Secure Supply

The US Department of Defense (DoD)

The US Department of Defense (DoD) is taking significant steps to secure the domestic supply of niobium, a metal essential for defense and aerospace applications. In a strategic move to reduce reliance on imports, the DoD has awarded a $26.4 million grant to Global Advanced Metals (GAM) under the Defense Production Act Investments (DPAI) program. This funding will enable GAM to enhance production of high-purity niobium oxide at its Pennsylvania facility. The investment aligns with the National Defense Industrial Strategy, prioritizing the expansion of domestic production to mitigate supply chain risks.

Niobium's Role in Defense and Aerospace

Niobium, known for its high strength-to-weight ratio and refractory properties, plays a crucial role in aerospace components. Its lower density compared to other refractory metals makes it ideal for reducing mass in systems like jet engines, solid rocket motor skirts, and turbine nozzles. As China accelerates its development of hypersonic weapons, the US government has expressed concern about securing a reliable supply of niobium for applications in these advanced defense platforms.

The grant to GAM will also enable the company to refine its production processes, integrating new workflows that are expected to increase efficiency. As niobium oxide is currently predominantly sourced from Brazil, this move marks a critical step toward reducing US dependence on foreign sources.

America's Response to Global Competition

In addition to GAM's efforts, the DoD is also supporting projects aimed at enhancing the cost-efficiency of niobium-based materials. The Powder Alloy Development of Additive Manufacturing (PADAM) project, led by America Makes and financed by the Air Force Research Laboratory (AFRL), is focused on improving niobium alloy production, particularly Nb C-103. This project seeks to expand the supply base while making niobium powder feedstocks more affordable and versatile for defense applications.

The increased focus on niobium highlights its importance in the defense sector, particularly as the US faces growing competition from nations like China, which is developing hypersonic missiles that rely heavily on niobium components. The success of these initiatives will not only secure the US niobium supply but also support the nation's defense systems for years to come.

Littlejohn Capital Acquires 3P Processing to Expand Aerospace Metals Portfolio

3P Processing

Littlejohn Capital has announced the acquisition of 3P Processing, a Kansas-based aerospace metal processor specializing in aluminum, titanium, and steel components. The deal marks a strategic move into the aerospace finishing sector, where precision metal processing is vital for both commercial and defense-grade applications. The 3P Processing acquisition aligns with Littlejohn’s broader investment focus on industrial and defense manufacturing.

3P Processing operates out of Wichita, Kansas, a key hub in the U.S. aerospace supply chain. The company provides metal surface finishing for critical aircraft components used in commercial aviation, business jets, and defense programs. Littlejohn’s acquisition provides 3P with growth capital and operational support to expand its capabilities in a market defined by tight tolerances, certifications, and defense compliance.

Strategic Fit in Industrial and Defense Supply Chains

The 3P Processing acquisition fits Littlejohn Capital’s strategy of investing in lower mid-market manufacturing firms that require transformation or scaling. With defense and aerospace markets placing increased emphasis on resilient domestic processing capacity, acquisitions like this bolster national supply chain security.

Littlejohn brings experience across sectors including automotive, industrial services, and defense logistics, which can support 3P’s next phase of growth. As original equipment manufacturers (OEMs) increasingly localize metal processing needs, 3P is well-positioned to benefit from these evolving supply chain dynamics.

Aerospace Finishing Demand Set to Grow with Jet and Defense Orders

Demand for precision metal processing is rising amid new commercial aircraft orders, military modernization, and increased defense budgets. The 3P Processing acquisition enhances Littlejohn’s exposure to this niche but essential part of the aerospace value chain. With titanium and aluminum components playing central roles in weight-sensitive designs, finishing capabilities are critical to product performance and safety compliance.

Although financial terms were not disclosed, the move underscores a growing trend: private equity targeting aerospace component specialists to capitalize on the post-COVID recovery and long-term defense spending cycles.

The Metalnomist Commentary

The 3P Processing acquisition by Littlejohn Capital reflects a broader shift in private equity interest toward certified aerospace manufacturing assets. As OEMs seek reliability and scale in North American processing, well-capitalized firms like 3P stand to gain from the reshoring of finishing operations.

Almonty Tungsten Revenue Stable at C$7.9 Million Despite US Relocation Costs

Almonty

Almonty tungsten revenue increased modestly by 1% to C$7.9 million in Q1 despite significant relocation expenses related to US incorporation. The Canadian tungsten miner's Almonty tungsten operations demonstrated resilience with mining income rising 24% to C$752,000, primarily driven by increased production at the Panasqueira mine in Portugal while managing substantial corporate restructuring costs.

Production Growth Offsets Corporate Restructuring Impact

Almonty tungsten mining operations delivered improved operational performance despite challenging circumstances. Income from mining activities increased 24% to C$752,000, reflecting enhanced production efficiency at the company's Portuguese Panasqueira facility. However, operating expenses more than doubled from C$4.3 million to C$9.5 million, primarily due to costs associated with the US incorporation process.

Meanwhile, the company reported a substantial C$34.6 million loss compared to C$3.8 million in 2024, largely attributed to non-cash losses from equity value changes during US incorporation. Almonty initiated this strategic relocation in January to enhance competitiveness in global tungsten and molybdenum markets, positioning itself closer to key North American defense contractors and technology companies.

Sangdong Project Drives Future Growth Expectations

However, Almonty tungsten prospects improve significantly with the approaching Sangdong project production in South Korea. The company secured a comprehensive offtake agreement in January, selling 100% of Sangdong Molybdenum project output to South Korean ferro-molybdenum producer SeAH. This strategic partnership provides guaranteed revenue streams and eliminates marketing risks for the high-grade molybdenum operation.

Therefore, the Sangdong facility represents a transformative asset for Almonty's production portfolio and revenue diversification strategy. South Korea's established metals processing infrastructure and SeAH's long-term commitment create optimal conditions for sustained project success. The molybdenum market's strong fundamentals support premium pricing for high-quality concentrate production.

Defense Applications Strengthen Market Position

Furthermore, Almonty secured critical defense sector contracts that demonstrate tungsten's strategic importance. The company signed a binding three-year agreement with Tungsten Parts Wyoming (TPW) to supply 40 metric tonnes monthly of tungsten oxide for defense applications. This contract provides stable revenue streams while supporting US national security supply chain objectives.

As a result, tungsten demand continues expanding in defense and technology sectors due to the metal's exceptional properties. Tungsten carbide applications in cutting tools leverage the material's high melting point and hardness for machining operations. Growing defense spending and advanced manufacturing requirements create sustained demand for reliable tungsten suppliers like Almonty.

The Metalnomist Commentary

Almonty's strategic US relocation, despite near-term costs, positions the company advantageously for North American defense and technology market access while the Sangdong project provides substantial production growth potential. The combination of established Portuguese operations, emerging South Korean molybdenum production, and secured US defense contracts creates a diversified revenue base supporting long-term tungsten market leadership.

EU Steel Industry Faces Key Policy Shifts: A Call for Concrete Measures

EU Steel

The mood among European policy makers regarding the steel industry has notably shifted, with increasing support for the sector’s future. According to Axel Eggert, director-general of Eurofer, the European steel industry association, policymakers are beginning to recognize the importance of addressing the growing challenges in global steel production. However, while this shift in mood is encouraging, Eggert emphasized that these positive words must be followed by tangible actions.

Rising Political Support for EU Steel Industry

Eggert pointed out that there is more political backing for the European steel sector, especially as lawmakers become increasingly aware of the massive overcapacity in global steel production, particularly CO2-intensive steel. The Organization for Economic Cooperation and Development (OECD) predicts that global steel capacity will grow by 157 million tons over the next three years, which will likely negate the decarbonization efforts of the EU steel industry.

In response, the European Parliament has called for a European steel action plan, which has been embraced by European Commission President Ursula von der Leyen. However, Eggert stressed that while these statements are promising, they must be followed by concrete measures to ensure the long-term sustainability of the industry.

Green Steel and Public Procurement as Key Measures

One of the critical measures that Eggert advocates for is the implementation of public procurement for green steel. With the EU's ambitious decarbonization targets — a 55% reduction in CO2 emissions by 2030 and carbon neutrality by 2050 — Eggert emphasized that EU governments should lead by example. This means prioritizing green steel in public sector construction, vehicles, and other products, which would support European producers committed to decarbonizing their operations.

Global Overcapacity and Trade Distortions Impacting EU Steel

The steel industry crisis is largely driven by global overcapacity and low demand in Europe, exacerbated by high energy costs. Compounding this issue is the low-priced steel being exported by countries like China, Japan, and India, which depresses global markets. China’s exports, in particular, have been an issue for EU steel producers, as the country benefits from state subsidies, leading to significant trade distortions.

Eggert discussed how the EU has implemented anti-dumping measures on stainless steel from Indonesia, but Indonesia has circumvented these by exporting processed steel to third-party countries like Taiwan, Vietnam, and Turkey, which then re-export the products back to the EU. This tactic, along with the support from Chinese investments in Indonesia’s steel industry, has made Indonesia’s steel sector one of the largest globally.

EU Trade-Defense Measures: Need for Improvement

Eurofer has called for enhanced EU trade-defense measures to tackle issues such as dumping and excessive capacity from third countries. Eggert emphasized the need for improved steel safeguards and more effective enforcement of existing trade defense instruments. Currently, anti-dumping duties on Chinese steel are too low, undermining the efficacy of EU trade policies.

Carbon Border Adjustment Mechanism (CBAM) Concerns

The EU’s carbon border adjustment mechanism (CBAM) has been another point of contention. Third countries are already looking to export steel from their lowest CO2-emitting plants to avoid paying CBAM costs. Eggert advocated for including indirect CO2 emissions (Scope 2 emissions) in the CBAM, particularly for stainless steel, which is a major contributor to indirect emissions.

Scrap Export Concerns and India's Decarbonization Challenge

Finally, Eggert addressed concerns from India regarding the potential for a European export ban on scrap metal. While the EU does not currently have a scrap export ban, Eggert pointed out that India itself has export restrictions on scrap and needs to focus more on decarbonizing its domestic steel sector. He also warned that if India delays its decarbonization efforts until 2070, the EU will face a significant disadvantage in the global steel market.

Stonepeak to Acquire Forgital Group, Expanding Aerospace Components Portfolio

Forgital Group

Stonepeak, a prominent US-based investment firm, has reached an agreement to acquire Forgital Group, an Italy-based aerospace components manufacturer, from Carlyle, another US investment group. This acquisition, which is pending regulatory approvals, is expected to be finalized by the second quarter of 2025. While financial details of the transaction have not been disclosed, the deal marks a significant move for Stonepeak in expanding its presence in the aerospace and defense sectors.

Forgital Group: A Leading Aerospace Component Manufacturer

Forgital Group is known for its expertise in manufacturing seamless rolled rings and assembling fan modules, critical components used in commercial aerospace and defense applications. The company’s products serve as compressor and turbine discs in aircraft engines, which are vital for both performance and safety in modern aviation.

In addition to its aerospace offerings, Forgital serves a wide range of industrial markets, producing components from high-performance materials such as titanium, aluminum, and nickel-based alloys. With nine production facilities located across Italy, France, and the US, Forgital has a well-established footprint in the global manufacturing landscape.

Strategic Acquisition to Strengthen Aerospace Portfolio

The acquisition of Forgital Group fits within Stonepeak’s broader strategy to strengthen its portfolio in high-growth industries, particularly aerospace and defense. By adding Forgital’s specialized manufacturing capabilities, Stonepeak positions itself to capitalize on the increasing demand for advanced aerospace components, driven by both commercial aviation and defense sector needs.

Forgital's focus on high-performance materials, including titanium and nickel alloys, aligns with the growing demand for lightweight yet durable materials in the aerospace industry. These materials are essential for improving fuel efficiency and reducing emissions in aircraft, making them a key area of investment as the industry moves toward more sustainable technologies.

Regulatory Approval and Closing Timeline

The acquisition is still subject to regulatory review, with completion anticipated by the second quarter of 2025. Upon finalizing the deal, Stonepeak will integrate Forgital’s operations into its portfolio, expanding its capabilities in the aerospace components sector. The deal is poised to enhance Stonepeak’s position in a competitive market, which is increasingly driven by technological advancements and the push for more efficient aerospace manufacturing.

5N Plus Semiconductor Materials Demand Rises as Germanium Refining Gains Strategic Value

5N Plus

5N Plus semiconductor materials demand remains strong despite rising input and operating cost pressure expected in 2026. The Canadian materials producer sees continued demand from solar, artificial intelligence, defense, and high-purity specialty semiconductor markets.

The company expects geopolitical uncertainty and broader economic factors to increase costs this year. However, 5N Plus semiconductor materials remain well positioned because AI-related power demand is supporting the solar sector and strengthening demand for advanced materials used in high-performance applications.

5N Plus reported strong 2025 results, with revenue rising 35pc year on year to $391mn. Its specialty semiconductors segment grew 41pc to $285mn, while performance materials revenue increased 22pc to $106mn. Profit more than tripled to $50.6mn, highlighting strong operating momentum despite a more complex cost environment.

Solar and Defense Demand Support Specialty Materials Growth

Solar remains a key demand driver for 5N Plus. The company expects its Germany-based solar cell producer Azur Space to expand production capacity by another 25pc in 2026. This follows capacity increases of 35pc in 2024 and 30pc in 2025.

This expansion shows how specialty solar materials are gaining value as AI, data centres, satellites, and power-sensitive applications increase demand for reliable energy technologies. Even with US policy shifts, 5N Plus expects solar-related demand to remain strong because underlying electricity needs continue to rise.

Defense is also becoming a more important opportunity. Several large defense companies have shown interest in 5N Plus’ ability to refine and recycle strategic minerals. This reflects a wider industrial shift in which high-purity materials, recycling capability, and secure domestic supply are becoming central to defense procurement.

Germanium Refining Expands US Critical Materials Capability

Germanium refining is emerging as a strategic growth area for 5N Plus. The US Department of Defense awarded the company $18.1mn in January to scale germanium refining capacity at its St George facility in Utah.

The project will gradually increase the company’s ability to recycle and recover metal from industrial waste. 5N Plus aims to produce 20 metric tonnes per year of high-purity germanium through 2030, strengthening US access to a critical material used in semiconductors, infrared systems, fiber optics, solar cells, and defense technologies.

The company expects the germanium expansion to have very little impact on 2026 revenue because commercial benefits will take at least a year to emerge. Still, the project has strategic value because it connects recycling, refining, and secure supply of high-purity materials in North America.

The Metalnomist Commentary

5N Plus shows how specialty materials companies are becoming strategic infrastructure for AI, defense, and energy transition supply chains. The near-term challenge is cost inflation, but the long-term opportunity is high-purity refining and recycling for materials that governments increasingly view as security-critical.

Howmet 2025 Guidance Adjusted Amid Tariff Uncertainty

Howmet

Aerospace and Defense Market Shows Diverging Trends

Howmet 2025 guidance has been revised as the company widened its full-year revenue outlook to $7.88bn–$8.18bn. However, the lower end was reduced by $50mn due to increasing tariff-related uncertainty. The company cited potential risks to commercial aviation and freight sectors, particularly in the U.S. market, as key factors for the adjustment.

Strong Defense Aerospace Sales Offset Commercial Concerns

Despite concerns over trade barriers, Howmet 2025 guidance remains supported by robust defense sector growth. The company’s defense aerospace revenue surged by 19% year-over-year to $333mn in Q1. CEO John Plant highlighted that defense demand remains “steady and growing,” contrasting with weakness in commercial aviation driven partly by Boeing’s tensions with Chinese carriers.

Boeing Outlook and Profit Growth Provide Stability

Howmet remains optimistic about Boeing’s short-term outlook, even though Chinese airlines are no longer accepting its aircraft. Boeing is Howmet’s largest customer, making its trajectory critical to Howmet’s performance. Net income in Q1 rose 42% year-over-year to $344mn, reinforcing the company’s stability despite trade headwinds. Howmet 2025 guidance still reflects confidence in its diversified portfolio and market positioning.

The Metalnomist Commentary

Howmet’s strategic flexibility is clear in its response to global tariff volatility. The strength in defense markets may act as a cushion against commercial softness, but ongoing U.S.–China aerospace tensions warrant close monitoring.

India Launches First Private Military Aircraft Plant in Partnership with Airbus

Tata Advanced Systems

India has officially launched its first private military aircraft manufacturing facility, marking a significant milestone in its defense and aerospace sector. Tata Advanced Systems, in collaboration with Airbus, has unveiled the final assembly line for the Airbus C-295 military transport aircraft in Vadodara, Gujarat. This is a key development under India's “Make in India” initiative, aimed at boosting local defense manufacturing capabilities and reducing dependency on foreign suppliers.

Strategic Milestone for India’s Aerospace Industry

The Tata Aircraft complex, which is the first private plant in India to assemble military aircraft, will produce the Airbus C-295 in collaboration with Airbus Spain. The plant is expected to deliver its first C-295 aircraft by 2026, with more than 85% of the assembly and production of 13,000 components to be completed domestically. Out of the 40 C-295 aircraft planned, 16 will be assembled in Seville, Spain, with six already delivered to the Indian Air Force (IAF).

The C-295 program is part of India's broader efforts to modernize its military equipment. As the largest customer for the Airbus C-295, India plans to purchase a total of 56 aircraft. This move aligns with the Indian government’s ongoing push to encourage private defense manufacturing, a sector that has traditionally been dominated by state-run entities.

Airbus's Expanding Role in India

Airbus, which views India as a critical resource hub, is not only involved in aircraft assembly but is also expanding its footprint in India through the manufacturing of components, engineering development, and maintenance, repair, and operations (MRO) services. The company is investing in various aspects of the Indian aerospace ecosystem, including pilot training and academic partnerships to strengthen local expertise and human resources.

The Tata-Airbus collaboration is a reflection of India's growing role as a key player in the global aerospace and defense industry, with both companies working toward creating a self-sufficient defense manufacturing base within the country.

US Antimony DLA contract strengthens US strategic antimony supply

US Antimony

US Antimony DLA contract marks a major step in rebuilding North America’s antimony supply chain and defense resilience. The five-year, fixed-price US Antimony DLA contract is worth up to $245mn and targets nearly 6.7mn lbs of metal. As a result, the US Antimony DLA contract positions the company as the core domestic supplier for this critical mineral.

DLA moves to secure domestic antimony for the stockpile

The US Defense Logistics Agency awarded US Antimony a contract to supply ingots for the National Defense Stockpile. Deliveries will go to the Scotia Depot in New York, with first shipments expected this week under the multi-year framework. The tender directly cited US Antimony as the only source of qualifying domestic-grade material, underscoring its unique position.

US Antimony operates the only two antimony smelters in North America, in Montana and at Madero in Mexico. The Madero smelter reopened in April, restoring additional regional capacity for processed antimony products. Together, these assets give the company integrated upstream and midstream control from ore to ingot.

Antimony’s role in defense and critical minerals strategy

Antimony is a core ingredient in many strategic and military applications, especially for alloys and flame retardants. It is used in batteries, cables and specialized defense components, making secure supply a national priority. Therefore, the contract fits into Washington’s broader push to rebuild domestic and allied capacity for critical minerals.

The DLA has expanded its National Defense Stockpile purchases across several critical minerals this year. Recent tenders and RFIs have targeted cobalt, bismuth, high-purity aluminum, scandium flake, niobium and ferro-niobium. This portfolio approach aims to reduce dependence on unstable or adversarial foreign sources.

Market implications for antimony and strategic metals

The US Antimony DLA contract sends a strong demand signal to antimony markets and potential investors. Long-term, fixed-price offtake can support capital spending, operational stability and potential future expansions. Meanwhile, the contract highlights the value of having permitted, operating smelter capacity in politically stable jurisdictions.

Global antimony supply remains concentrated, with China still dominating mine output and processing. As a result, Western buyers increasingly seek diversified supply chains, including North American and allied producers. US Antimony’s position as the only North American smelter operator makes it a central part of this shift.

The Metalnomist Commentary

This deal effectively transforms US Antimony from a niche smelter into a strategic asset for US defense planners. For the broader critical minerals sector, it signals that long-dated government offtake contracts may become a key financing tool for non-Chinese supply.

Enovix Expands into Asia with Strategic South Korea Acquisition

Enovix

US-based battery technology company Enovix has announced the acquisition of a battery cell manufacturing facility in South Korea.

The move marks a strategic expansion aimed at addressing rising demand from the defense sector, a key target market for advanced energy storage solutions. The facility was acquired from SolarEdge, an Israeli energy technology firm. Though the financial terms remain undisclosed, the acquisition includes both the physical plant and essential development and production equipment.

Silicon-Anode Battery Production to Scale Up

Enovix specializes in silicon-anode lithium-ion batteries, known for higher energy density and longer life cycles than traditional graphite-based cells. With this new manufacturing footprint in Asia, the company aims to accelerate production to meet growing military and industrial needs. The South Korean facility will allow Enovix to scale its output more efficiently and closer to global clients in Asia-Pacific, enhancing both delivery timelines and cost efficiency. This acquisition reflects a broader trend of American tech firms diversifying production locations amid geopolitical and supply chain pressures.

Broader Market Implications for Defense and Energy Storage

The defense industry has increasingly turned to high-performance lithium-ion batteries to power advanced systems, from drones to tactical communications. Meanwhile, South Korea remains a global battery production hub, home to major players like LG Energy Solution and Samsung SDI. Enovix’s entry into this ecosystem may also signal potential partnerships or talent acquisitions in one of the world’s most competitive battery markets. By localizing part of its manufacturing, Enovix not only enhances capacity but also strengthens its resilience against future disruptions in the US-China technology corridor.

The Metalnomist Commentary

Enovix’s move into South Korea highlights a strategic pivot toward regionalized production to support defense-grade lithium-ion batteries. As demand spikes for high-energy-density storage solutions, this acquisition strengthens the company’s hand in a competitive and geopolitically sensitive industry. For metals suppliers and cell integrators, it also signals growing urgency to align with agile, dual-continent battery players.

Phoenix Tailings Raises $76M to Launch First US Standalone Rare Earth Metals Plant

Phoenix Tailings

Phoenix Tailings rare earth plant to meet US defense demand

US-based startup Phoenix Tailings has raised $76 million in Series B funding to build a rare earth metals plant in New Hampshire. The Exeter facility will be the first standalone US rare earth refinery capable of producing finished metals directly from diverse feedstocks. Once fully operational, the site will have a 500t/yr production capacity—matching the entire annual demand of the US defense sector.

Exeter facility to refine key rare earth elements for magnet manufacturers

Initial output from the Phoenix Tailings rare earth plant will start this summer at 200t/yr, ramping up to 500t/yr in time. The facility will produce neodymium-praseodymium, ferro-dysprosium, dysprosium, and terbium—all essential for permanent magnets used in defense, electric vehicles, and medical devices. It will process feedstocks from mines, coal ash, recycling streams, and other industrial byproducts, offering flexible sourcing.

Global investors back strategic US supply chain expansion

The oversubscribed $76 million Series B round was led by Envisioning Partners of Korea and included Escape Velocity, Builders Vision, Yamaha Motor Ventures, M Power, and Sumitomo’s Presidio Ventures. This strong international investor support highlights the growing urgency to establish domestic rare earth supply chains. Phoenix Tailings already runs a 40t/yr commercial facility and sources concentrates from allied nations.

The Metalnomist Commentary

The Phoenix Tailings rare earth plant represents a major step in reshoring critical mineral processing to the US. Its feedstock flexibility and defense-aligned production profile could reduce dependence on China’s REE dominance. This deal also shows that global capital is actively fueling secure and resilient rare earth value chains.

US Army Critical Minerals Leases Bring Processing Onto Military Installations

US, critical minerals

US Army critical minerals leases will place four commercial processing facilities on military installations for the first time, marking a new approach to securing domestic supplies of graphite, lithium, boron and rare earths.

US Army critical minerals leases were conditionally awarded to Empire State Mines, Energy X, Ioneer USA and REalloys on 25 June. The facilities are expected to begin development in 2027, with initial operating capacity targeted by or before 2028.

US Army critical minerals leases are strategically significant because they move critical mineral processing directly onto federal military property. The model reduces the need for the government to build and operate the facilities itself while creating a dedicated pathway for private investment.

The initiative also reflects a broader shift in US industrial policy. Washington is increasingly focused on processing capacity, not just access to mineral deposits, because refining and conversion remain major vulnerabilities in defense supply chains.

Military Land Becomes a Platform for Mineral Processing

The four companies will focus on different critical materials. Empire State Mines will process graphite, Energy X will target lithium, Ioneer USA will process boron, and REalloys will handle rare earths.

These materials serve different markets, but all have strategic relevance. Graphite and lithium are key battery inputs, rare earths support permanent magnets, and boron is used in advanced materials, glass, ceramics and selected defense applications.

The projects will be developed through the Army’s Enhanced Use Lease model. This allows underutilized military land to be leased to private-sector companies while the Army remains the landlord.

The commercial operators will bear the costs of financing, designing, building, operating, securing and eventually decommissioning the facilities. They must also pay rent at or above fair market value.

This structure limits direct government construction risk while still giving the Army influence over where strategic processing capacity is located.

The model could also shorten parts of the project-development process if sites already have suitable infrastructure, security and federal oversight. That could make military installations attractive locations for strategically sensitive processing projects.

Defense Policy Shifts Toward Domestic Processing Capacity

The leases are part of the Army’s Strategic Capital Initiatives, which aim to use private investment to accelerate military modernization and supply-chain resilience.

The significance lies in the processing stage. The US has identified numerous domestic and allied mineral resources, but many still depend on overseas refining or conversion before they can enter defense manufacturing.

Locating commercial plants on military property signals that processing is increasingly viewed as strategic infrastructure. The Army is effectively using its land base to support industrial capacity that private markets have struggled to build quickly enough.

The approach has already been tested outside critical minerals. The Army has used similar lease structures for a Hanwha Defense USA munitions facility and data center projects involving Carlyle and CyrusOne.

If the mineral projects reach production on schedule, the EUL model could become a repeatable tool for other materials. It offers the government a way to support domestic capacity without taking full ownership or construction responsibility.

For the wider market, the message is clear. US critical minerals policy is moving further downstream, with processing, refining and conversion becoming central to defense supply security.

The Metalnomist Commentary

The Army’s lease awards turn underused military land into industrial infrastructure for critical minerals. The model could become important if it proves capable of moving processing projects from policy support to commercial production faster than conventional development routes.