U.S. Faces Tungsten Supply Challenge Amid Global Conflicts

The United States is consuming large amounts of advanced weaponry in its conflict with Iran, relying heavily on missiles and other munitions. A critical component in these weapons is tungsten, a metal dominated by Chinese production. This dependency has prompted the U.S. to seek alternatives.

Tungsten’s Essential Role

Tungsten is vital for national defense, used in fighter jets, bunker buster bombs, and missile systems. The U.S., lacking active commercial tungsten mines since 2015, wants to reduce its dependency on Chinese supplies. The former Trump administration stressed this need.

“There are very few large-scale tungsten mines on the planet,” said Lewis Black, CEO of Almonty Industries.

In South Korea, a mountain mine contains substantial tungsten ore reserves. Owned by a U.S. company, the Sangdong mine re-opened after competition with Chinese mining led to its shut down decades ago. CEO Black emphasized tungsten’s historical significance as a “war metal,” now crucial in technology sectors like semiconductors and batteries.

Supply Chain Challenges

As the U.S.-Israeli conflict with Iran intensifies, tungsten demand is set to grow. Steve Allen, Almonty’s COO, stressed the importance of securing a resilient tungsten supply chain for the future.

Restoring pre-war munition levels could take four years, a vital factor should tensions with China rise. This shortage affects allies like Japan and South Korea, both reliant on U.S. missile systems. Taiwan awaits a $14 billion U.S. arms package, delayed due to current conflicts.

Chinese Dominance

China, producing over 80% of the world’s tungsten and consuming more than half, enjoys low labor costs and less stringent regulations. U.S. reliance on recycling and imports highlights the supply vulnerability.

A trade dispute with the U.S. led China to impose export controls on rare earths, including tungsten, pushing prices to new heights. A tariff and rare earth agreement expires soon, adding uncertainty to future access.

Reviving U.S. Production

Tungsten extraction is challenging, both physically and environmentally. The U.S. lacks industry knowledge, having lost expertise to China over recent decades. Almonty’s South Korean mining operations are refocused on finding new tungsten deposits. Their mountain mine could produce tungsten ore for about 100 years if conditions allow.

Almonty plans to process 1.2 million tons of tungsten ore yearly. Their strategic move to Montana positions them closer to U.S. defense interests. Plans to reopen a Montana mine are underway, vital for establishing domestic supply.

“Re-establishing a tungsten mine in the United States is absolutely critical now and in the future,” emphasized Allen.