Tungsten—a formidable mineral with a rising price, a tightening supply chain, and growing geopolitical implications. As global markets respond to shifting economic and defense priorities, tungsten has emerged as a strategic asset with significant implications for industries ranging from aerospace to semiconductors.
Why Are Tungsten Prices Rising?
Over the past few years, tungsten prices have surged into a highly profitable zone. This increase is fueled by global recognition of its strategic importance. The U.S., EU, Canada, Australia, and South Korea have all classified tungsten as a critical raw material due to its economic significance and high supply risk.
Tungsten’s unique properties—high density, extreme hardness, and resistance to heat—make it indispensable across multiple industries. Its applications in automotive manufacturing, aerospace technology, mining operations, energy infrastructure, and military defense are driving skyrocketing demand. Moreover, as the world increasingly shifts toward electric vehicles and cutting-edge defense systems, the need for tungsten continues to escalate.
The Widening Supply-Demand Gap
The global dependence on China for tungsten supply is a growing concern, with over 83% of production originating from China, and Russia and Vietnam serving as secondary suppliers. This concentration presents significant risks to market transparency and supply security, particularly amid rising geopolitical tensions.
Industry experts predict a widening supply deficit, with annual demand growth estimates ranging from 3.2% to 8%. Sectors such as cemented carbides, superalloys, and semiconductors are driving this imbalance, placing further pressure on tungsten availability. With supply struggling to keep pace, tungsten’s role as a critical mineral is more pronounced than ever.
Geopolitical Risks and Military Demand
Military demand is a crucial driver in tungsten’s market trajectory. The metal is essential for advanced defense technologies, including tank armor, armor-piercing munitions, and hypersonic weaponry. As global military tensions rise, so does tungsten demand.
European nations such as Poland, Romania, and France have increased military spending, while China continues aggressive investments in hypersonic technology. This intensifying arms race has exacerbated tungsten supply concerns, placing additional strain on an already fragile market.
Transparency Challenges and Strategic Solutions
Beyond supply and demand dynamics, tungsten’s sourcing remains a critical issue. It is classified as a conflict mineral, meaning it is often mined in politically unstable regions. The U.S. Securities and Exchange Commission (SEC) mandates that companies disclose whether their tungsten sourcing involves conflict-affected areas, but transparency challenges persist.
Further complicating the picture, China recently announced export restrictions on tungsten, effective February 4, 2025. These restrictions, targeting five key metals used in defense, clean energy, and other high-tech industries, signal further volatility in the global tungsten supply chain.
The Role of Almonty in the Tungsten Market
One of the key players addressing these supply chain challenges is Almonty Industries (TSX: AII | ISIN: CA0203981034) As a leading tungsten producer, Almonty is focused on securing alternative sources outside of China. The company operates significant tungsten mines, including the Sangdong Mine in South Korea, which is set to become one of the largest tungsten production sites globally. Almonty’s commitment to sustainability, ethical sourcing, and strategic supply chain diversification positions it as a critical player in stabilizing the global tungsten market.
By investing in projects that enhance supply security, Almonty is helping reduce reliance on Chinese tungsten while ensuring a steady supply for key industries. As geopolitical tensions and demand pressures continue to rise, the role of companies like Almonty will be essential in shaping the future of tungsten markets.
Watch conversations with CEO, Lewis black on Global Tungsten Market and Supply Security as well as their news of receiving final commitments under an A$18.45 million equivalent equity placement and so much more
The Future of Tungsten Markets
With demand rising, supply tightening, and geopolitical factors at play, tungsten’s future remains uncertain but highly strategic. Market participants, from investors to policymakers, must monitor developments closely. Diversification of supply chains, increased recycling efforts, and strategic stockpiling are potential solutions that could alleviate some of the pressure.
As tungsten continues to shape capital markets and global trade, staying ahead of trends in pricing, supply chain shifts, and regulatory changes will be critical for industries and investors alike. One thing is clear: tungsten is more than just a metal—it’s a market force with global implications.
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