United States Antimony Corporation (NYSE: UAMY) has been awarded a five-year contract valued at up to $245 million by the US Defense Logistics Agency (DLA) to supply antimony metal ingots for the national defense stockpile.

The announcement sent US Antimony’s stock soaring 17.8% during Tuesday’s trading session in New York, boosting the company’s market capitalization to approximately $975 million.

Antimony, a critical mineral for national and economic security, is essential in defense and high-tech applications such as flame-retardant materials, semiconductors, ammunition primers, and superhard alloys. However, the US has not produced antimony commercially since 2016, making domestic production a strategic priority.

US Antimony operates the only two smelters in North America capable of processing antimony metal. Both facilities are equipped to produce military-grade ingots, with initial deliveries under the new contract expected this week.

To bolster its supply chain, the company has been expanding its feedstock sources globally while advancing domestic mining projects. Recent exploration on its Alaska acreage revealed high-grade deposits, which the company says will enable efficient processing and strengthen the US supply chain. Additionally, US Antimony is progressing its Montana mining operations.

The company noted that alternative antimony sources, whether domestic or international, are at least three years away from achieving commercial-scale production and may not meet the stringent standards required for defense applications.

Chairman and CEO Gary Evans described the DLA contract as a “significant milestone” for the company. “This sole-source award highlights our unique position as the only fully integrated antimony operation outside of China,” Evans said, emphasizing the importance of securing a government contract nearly 17 times the company’s 2024 revenue of $14.9 million.

Founded decades ago, US Antimony produces and markets antimony, zeolite, and precious metals across the US and Canada. Its Montana facility processes ore into antimony oxide, antimony metal, and antimony trisulfide, while also recovering gold and silver.

The company’s Bear River zeolite operation in Idaho supplies materials for applications such as water filtration, nuclear waste treatment, agriculture, and other industrial uses.