The Defense Department is granting Canada's Fireweed Metals Corp. $15.8 million to accelerate the company's development of a tungsten mine, according to a Friday DOD release.
“The United States is overly reliant on overseas sources of tungsten,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in a statement accompanying the release, “and a secure North American supply for this commodity will mitigate one of our most critical material risks.”
Tungsten’s application as a “critical input for military-grade steel production, aerospace components, munitions and ground vehicle armor” makes it critical to national security, according to DOD.
Authorities granted under the Defense Production Act consider Canada a domestic source, meaning the investment “supports the 2024 National Defense Industrial Strategy goal of expanding support for domestic production of critical minerals,” DOD said.
Canada’s Department of Natural Resources has also granted a conditional approval to contribute up to approximately $9.2 million for Fireweed’s tungsten mine development, according to the release.
The mine will be established at the Mactung site in the Yukon, Canada -- “one of the world’s largest underdeveloped high-grade deposits of tungsten,” DOD said.
The award, which uses funds from the 2022 Additional Ukraine Supplemental Appropriations Act and is executed via the OASD(IBP)’s Defense Production Act Purchases office, aligns with the U.S.-Canadian Joint Action Plan on Critical Minerals announced in January 2020.
The plan “advances both countries’ common interest in strengthening North American critical mineral production needed for defense, aerospace, clean energy, communication and other key industries,” DOD said.
The joint action plan enables those goals through an outline of “bilateral commitments to collaborate on industrial base investments, public-private partnerships and other projects to onshore and expand these capabilities,” according to the release.
The $15.8 million investment marks the latest of two awards from the DPAP office, totaling $22.4 million since the beginning of fiscal year 2025, the release said. It’s also the latest of six awards made to Canadian companies using DPA funds to implement a Canada-based project, according to DOD.