The United States is accelerating efforts to reduce its reliance on Chinese tungsten, a critical mineral essential to aerospace, defense, and industrial applications. With China currently controlling about 80% of global tungsten supply, and the U.S. having not mined tungsten domestically since 2015, securing alternative sources has become a strategic priority.
China has imposed new export restrictions on tungsten and four other key minerals bismuth, indium, molybdenum, and tellurium requiring special licenses for overseas shipments. While not an outright ban, these restrictions echo previous measures taken on gallium, germanium, and antimony, all of which were later fully prohibited from being exported to the U.S. and other Western countries.
Tungsten prices, which had been declining, are already seeing an uptick in response to the news, with analysts expecting a significant supply squeeze. Investors are shifting focus to tungsten miners outside of China, leading to a surge in stock prices for companies with viable projects.
The Biden administration has taken proactive steps to curb dependence on Chinese tungsten. In December 2024, the U.S. imposed a 25% tariff on Chinese tungsten imports, signaling a shift toward self-sufficiency. Additionally, the U.S. military faces a 2027 deadline to halt all procurement of tungsten mined or manufactured in China and Russia, the world’s third-largest producer.
The Defense Logistics Agency is stockpiling tungsten, with plans to acquire up to 2,040 tons in the 2025 fiscal year. This reflects growing concerns over supply chain vulnerabilities, particularly as demand from the defense sector remains high. Tungsten is a critical component in armor-piercing ammunition, aerospace materials, and semiconductor production sectors where China’s dominance poses a significant strategic risk.
To support domestic production, the U.S. Department of Defense has awarded $15.8 million to Canada’s Fireweed Metals to accelerate the development of the Mactung tungsten mine in Yukon. Fireweed Metals has also secured funding from the Canadian government, highlighting the shared interest in securing a stable North American tungsten supply.
At the same time, South Korea’s Sangdong mine, once one of the world’s premier tungsten producers, is being revived by Almonty Industries. Almonty has already secured an offtake agreement with Global Tungsten & Powders, locking in a minimum floor price of $235 per metric ton unit (mtu) while current prices stand at $342.50 per mtu. This strategic move insulates the project from potential Chinese supply surges that have previously driven down global tungsten prices.
Despite these efforts, securing a stable tungsten supply outside of China will take time. While investments in Fireweed Metals and the restart of the Sangdong mine are positive steps, these projects are still in early stages, and immediate U.S. tungsten needs will continue to rely on imports.
If China fully bans tungsten exports, as it has with other critical minerals, prices could skyrocket, forcing U.S. manufacturers to pay a premium for non-Chinese sources. The Western strategy is shifting toward long-term contracts and price protections, as seen with Almonty’s agreements, to prevent the kind of price collapses that have plagued battery metals like lithium and cobalt.
The U.S. is clearly prioritizing tungsten as part of its broader effort to reduce dependence on China for critical minerals. Whether through government-backed projects, stockpiling, or strategic offtake agreements, the decoupling process is well underway. However, until new production comes online, the global tungsten market remains highly vulnerable to geopolitical shocks making it a key battleground in the ongoing critical minerals war.
https://www.mining.com/web/column-a-tungsten-tipped-answer-to-the-wests-critical-metals-dilemma/
https://stockhead.com.au/resources/chinas-tungsten-clampdown-sparks-market-optimism/
https://www.thearmchairtrader.com/canadian-stock-market-news/tungsten-mining-boom-is-here/