Countries Diversify Tungsten Supply Chains Amid Growing Demand
Countries worldwide are diversifying their tungsten supply chains, aiming to reduce dependence on China, which controls over 80% of global supply. This shift comes as demand for the critical mineral surges, particularly in high-tech industries and defense. Meanwhile, investors are taking notice, with companies like Elemental Altus Royencies Corp. (ELE.V) and American Tungsten (TUNG) gaining traction.
Tungsten's unique properties—unmatched heat resistance and strength—make it indispensable in various industries. The U.S. Department of Defense is actively securing tungsten supplies, investing in domestic and allied projects, and planning to phase out adversarial tungsten by 2027. Despite recent price stability at USD 95-97 per kg, global tungsten prices remain volatile due to Chinese export restrictions and rising demand.
Companies are exploring new tungsten sources. Guardian Metal Resources plc has initiated projects in Nevada, USA, while Pacific Bay Minerals is exploring in Canada. These efforts aim to bolster domestic supplies and reduce reliance on foreign sources. The global tungsten market is projected to reach USD 11.16 billion by 2032, growing at a CAGR of 7.95%. Key demand drivers include electronics, defense, industrial tools, and green technology.
As tungsten demand grows, particularly in strategic sectors, countries are racing to secure stable supplies. Diversification efforts are underway, with new projects in Australia, South Korea, Canada, and Africa showing promise. However, scaling up production will take time. Meanwhile, investors are capitalizing on the growing interest in tungsten stocks.
