As early as the beginning of December 2024, there were initial indications that China would impose certain restrictions on its tungsten exports. After the Chinese government further tightened export control on tungsten and molybdenum in early February 2025, Western industries have been increasingly seeking reliable alternatives. While Beijing leverages its dominance in critical metals as a geopolitical lever, companies like Almonty (TSX:AII) Industries are benefiting by building independent supply chains. With strategic partnerships, a relocation of its headquarters to the US, and the revival of one of South Korea’s largest tungsten mines, the Company is positioning itself as a key player in a market characterized by scarcity and increasing demand.
Almonty Industries: A strategic partner for Western industry
At the beginning of January 2025, Almonty (TSX:AII) announced that it would move its headquarters from Canada to the United States – a step that was approved by an overwhelming majority of shareholders. The background to this is tighter US regulations, such as the National Defense Authorization Act, which prohibits the procurement of critical raw materials from China, Russia, Iran, and North Korea from 2027. For CEO Lewis Black, it was clear that the US offers not only a stable legal framework but also access to a growing network of defense and technology partners. The domestication underscores Almonty’s focus on establishing itself as an “ally” of American industry.
Sangdong: A mine with global appeal
At the heart of the strategy is the Sangdong mine in South Korea, which is considered the largest tungsten deposit outside of China. The fully permitted project, which is expected to start production in mid-2025, has an expected mine life of more than 90 years. Synergies in logistics and infrastructure will be created thanks to the proximity to the revitalized molybdenum project, which is also located on the Sangdong property. Tungsten offtake agreements are already in place with the Plansee Group and the US manufacturer Global Tungsten & Powders. The latter has secured 45% of long-term tungsten production. This will enable the Company to plan its cash flows for the future. In addition to the mine in South Korea, the Company also owns tungsten deposits in Portugal, where the Panasqueira mine is already in production and Spain.
Offtake agreement for the molybdenum deposit
Another source of cash flow comes from the offtake agreement concluded in January 2025 with the South Korean group SeAH M&S, a supplier to SpaceX, which will purchase 100% of the molybdenum from Sangdong at a minimum price of USD 19 per pound. “The minimum price offers a stable foundation and access to low-interest domestic construction loans as we advance our molybdenum project while keeping the material in South Korea strengthens local supply chains and supports domestic industry,” explains Black. The project is fully approved and scheduled to begin production in late 2026. SeAH is simultaneously building a USD 110 million factory in Texas that will supply SpaceX and the US defense and civilian space industries. In this way, Almonty is not only strengthening South Korea’s raw material autonomy, but also the US defense industry.
Forging networks: Partnerships with ADI and military expertise
In mid-March 2025, Almonty signed a cooperation agreement with American Defense International (ADI), an influential Washington lobbying firm. ADI, whose client list includes SpaceX, is expected to accelerate Almonty’s networking with government agencies and key industries. On March 24, General Gustave F. Perna, former head of the US logistics operation Operation Warp Speed to combat COVID-19, joined the Board of Directors. “His unparalleled expertise in global logistics, supply chain strategy, and defense-related industries will be essential as we shift our corporate headquarters to the United States and strengthen our role as a key tungsten supplier to American industry,” commented Lewis Black. Perna is currently a member of other boards of directors, such as Allison Transmission and MD Helicopters – industries in which tungsten also plays a role.
Insider purchases by the CEO
At the end of March 2025, CEO Lewis Black sent a strong signal. Two share purchases of 50,000 shares each underline his confidence in the Company’s strategy. Such transactions are often seen by investors as an indicator of future value appreciation, as no one invests money expecting to take a loss. Mr. Black is a major shareholder in his company and likely has a better understanding of the tungsten market than most. These transactions have recently led to renewed rumors of a possible takeover. The market capitalization is currently around CAD 579 million, which can be seen as favorable due to the project’s uniqueness.
Why tungsten and molybdenum could become the “New Oil”
Tungsten, with the highest melting point of any metal, is indispensable for armaments, semiconductors, and green technologies. Molybdenum, in turn, is used in steel alloys for rockets and wind turbines. However, while demand is rising, China and allied states control over 85% of global production. Accordingly, Almonty Industries is the logical alternative, especially since the Company aims to supply around 7% of the global tungsten supply by 2027.
For those who want to learn more about why tungsten is essential for the economy, watch the full interview here.
Almonty’s positioning outside Chinese spheres of influence, combined with US support, makes the Company a strategic partner for NATO countries and technology giants. Analysts such as Peter Thilo Hasler of Sphene Capital see significant upside potential here and point to comparisons with US competitors such as MP Materials, which are valued significantly higher. The price target is CAD 5.20, which is significantly higher than the current share price of CAD 2.10. Since the beginning of the year, the share price has already risen by over 180% at its peak.
Almonty Industries combines geopolitical timing with operational excellence. Through US domestication, long-term offtake agreements, and the expertise of key figures such as General Perna, the Company is optimally positioned to benefit from the global shortage of raw materials. The Sangdong mine, a hub for tungsten and molybdenum, will not only strengthen South Korea’s industry but also the Western defense alliance. For investors focusing on critical metals, Almonty offers a rare combination of stability and growth within a market that has long since become the scene of geopolitical power struggles.
Conflict of interest
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