China’s Monopoly Is Crumbling – Prices Soaring
For decades, China dominated the tungsten market, accounting for around 80% of global production and a large share of processing. But it is precisely this imbalance that is now becoming a problem. Export controls, geopolitical tensions, and regulatory interventions are accelerating the decoupling of supply chains. The consequences are already visible, and the market is facing a structural deficit. Demand from the defense industry, chip manufacturing, and high-tech sectors is growing rapidly, while supply is failing to keep pace. According to forecasts, the market is expected to expand significantly in the coming years, while bottlenecks in critical intermediate products such as tungsten hexafluoride are set to increase. The rise in the price of ammonium paratungstate reflects this trend and is likely to become structurally entrenched given the geopolitical situation.
Unique Positioning – Why Almonty Stands Out
Almonty Industries prepared for this exact scenario early on and established a strategic foothold that is unparalleled in the Western commodities sector. At the heart of this is the Sangdong mine in South Korea, one of the historically most significant tungsten deposits outside of China, which has been brought back into production after decades of inactivity and is now being gradually ramped up. Significant volumes are already being processed in the current phase, but the true potential lies in the planned expansion, which is expected to nearly double production capacity and position the company as a dominant supplier outside of China in the long term.
What is decisive here is not only the quantity but, above all, the quality of the mined material, which, due to its purity, is particularly suitable for high-end applications in the defense and semiconductor industries and thus offers a clear competitive advantage.
In parallel, the company is pursuing a consistent geopolitical strategy. The relocation of the company’s headquarters to the US is far more than a symbolic step; it opens direct access to government support programs, strategic partnerships, and a market that, given regulatory requirements, will increasingly rely on non-Chinese suppliers in the future. Particularly relevant in this context is the planned start of production on US soil, which could place Almonty in a key position within the American raw materials strategy. Governments are increasingly acting as buyers and investors themselves and are willing to pay significant premiums for security of supply.
Broadly Diversified
Added to this is the company’s broad international footprint. With existing production in Portugal and the further development of projects in Spain, the company is creating additional diversification and strengthening its role as a reliable supplier to European industries. This geographic diversification not only reduces operational risks but also increases the company’s strategic importance across multiple economic regions simultaneously. This expansion is supported by a solid financial foundation, which allows the company to drive large-scale projects forward while responding flexibly to market changes.
Another key point is the management’s long-term vision. CEO Lewis Black is deliberately pursuing the development of a comprehensive Western tungsten ecosystem rather than working toward a monopoly-like position. This strategy may seem unusual at first glance, but it makes economic sense. Large industrial customers require multiple stable supply sources to secure their production chains. Only through a broader supply can a transparent and sustainable market price be established that is not distorted by government intervention from individual countries. In this context, Almonty positions itself not only as a producer but as a central building block of a new, independent raw materials architecture in the West.
A Revaluation on the Horizon
The combination of a structural supply deficit, geopolitical relevance, and rising prices makes tungsten one of the most exciting commodity markets in the coming years. Almonty Industries plays a key role here. With growing production capacity, strategic proximity to the US, and a clear positioning as a key Western supplier, the company possesses significant potential for a revaluation. Should the high price level solidify and the geopolitical premium be priced in more strongly, the stock is likely to be poised for a sustained upward trend.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a “Transaction”). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
