The tungsten market is a critical element in various industries such as weapons, autos, electric car batteries, semiconductors, and industrial cutting machines. China has established itself as the dominant player in the global tungsten supply chain, controlling over 80% of the market. The metal’s importance has led many countries to seek alternatives to reduce their dependence on Chinese supply.

In response to China’s dominance, the U.S. and Europe have taken steps to diversify their tungsten supply chains. The U.S. REEShore Act prohibits the use of Chinese tungsten in military equipment starting in 2026. Additionally, the European Commission extended tariffs on imported Chinese tungsten carbide for another five years. These measures aim to reduce reliance on China and establish a more secure supply chain.

The increasing demand for tungsten, coupled with limited supplies, has driven prices to multi-year highs. Despite efforts to diversify supply chains, the challenge remains in finding alternative sources for tungsten. Projects outside China, such as Almonty Industries’ mine in South Korea, offer potential solutions to meet the growing demand for non-Chinese tungsten.

Efforts to produce tungsten outside of China have faced numerous challenges over the years. Projects such as the mine in New Brunswick, Canada, have struggled to become operational despite promising potential to increase global tungsten capacity. The complexity of establishing new tungsten sources highlights the difficulties in reducing dependence on China in the global supply chain.

Non-Chinese companies are also making investments in the tungsten market to diversify the supply chain. Companies like IMC Endmill, an affiliate of the Warren Buffett-owned IMC Group, have made significant investments in tungsten powder manufacturing facilities in South Korea. These initiatives represent efforts to create alternative sources of tungsten outside of China and reduce reliance on Chinese supply.

The global tungsten supply chain is at a critical juncture, with efforts underway to diversify away from China’s dominance. While challenges remain in establishing new sources of tungsten, initiatives like Almonty Industries’ mine in South Korea offer promising solutions to meet growing demand. As countries strive to secure their supply chains, the future of the global tungsten market will depend on successful efforts to reduce dependence on Chinese supply.


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