U.S. Efforts to Diversify Tungsten Supply Amid Global Tensions

The United States is currently facing a significant challenge in its defense sector due to its reliance on foreign sources for tungsten, a crucial metal used in various military and technological applications. This need has become acute as the U.S. engages in conflicts that deplete its stockpiles of advanced weapons and ammunition.

Tungsten’s Role in Defense

Tungsten is an essential component in fighter jets, bunker-buster bombs, armor-piercing rounds, and missile systems. Its absence from active U.S. commercial production since 2015 has made the country reliant on foreign supply, predominantly from China.

Lewis Black, the CEO of Almonty Industries, a company that has reopened a tungsten mine in South Korea, highlighted the scarcity of large-scale tungsten mines worldwide. The mine, located in Sangdong, resumed operation after more than 30 years of inactivity due to Chinese competition. Black described tungsten as a “war metal,” underscoring its importance in both the military sector and the tech industry.

Efforts to Stabilize Supply Chains

Steve Allen, the chief operating officer of Almonty, pointed out that the demand for tungsten is expected to grow. Ensuring a stable tungsten supply chain is crucial for future needs. The pressure on tungsten sources has intensified since tensions involving Israel and Iran began, threatening global supplies of the metal.

Experts estimate a four-year recovery period for U.S. munitions stockpiles to pre-conflict levels, which is vital in the event of further conflicts, like a potential confrontation with China. The ongoing shortage impacts U.S. allies such as Japan and South Korea, which depend on American defense systems.

China’s Dominance and U.S. Strategy

China has been the dominant force in the tungsten market, responsible for over 80% of global production. This dominance results from cost-effective production practices that include subsidies, lower labor costs, and fewer regulations. In contrast, the U.S. heavily relies on tungsten recycling and imports to meet its needs, importing over 6,000 metric tons of processed tungsten annually.

Amidst a trade standoff with the U.S., China imposed export controls on tungsten and other critical minerals, causing their prices to spike. Although a temporary truce was agreed upon, uncertainty remains.

The extraction and processing of tungsten are complex due to its heat resistance and density. This process generates hazardous waste, a factor that has historically deterred U.S. production. According to experts, much of the knowledge and expertise in tungsten mining in the U.S. was lost when the industry declined in the 1990s.

Reviving Domestic Production

Almonty’s Sangdong mine, with its newly installed safety technology and strategic importance, could potentially supply tungsten for a century. The company aims to process about 1.2 million tons annually. With its headquarters moved from Toronto to Dillon, Montana, for strategic reasons, Almonty is also working to restart a mine in Montana, ensuring a domestic source of tungsten for U.S. defense.

Kickstarting a domestic tungsten industry is vital for U.S. defense, according to Almonty’s Steve Allen. Establishing an American tungsten mine now is crucial for the country’s defense autonomy.