Tungsten's Global Demand Soars Amid China's Dominance
Tungsten, a dense, brittle, and grayish-white metal, is gaining global attention due to its vital applications in high-performance electronics, defense, aerospace, and green technology. Its high melting point and tensile strength make it indispensable, but its supply chain is dominated by China, raising strategic concerns.
China controls over 80% of global tungsten supply and holds more than half of the known reserves. This dominance has led to tight supply, production issues, and high prices. The U.S. Department of Defense is investing in domestic tungsten projects and tightening procurement rules to reduce reliance on adversarial nations. U.S. companies like Elemental Altus, American Tungsten, and Patriot Critical Minerals are actively working to diversify the supply chain.
The tungsten market is booming, expanding from USD 6.04 billion in 2024 to USD 6.50 billion in 2025, with a projected CAGR of 7.95% to reach USD 11.16 billion by 2032. This growth is driven by rising demand in defense, aerospace, and electronics. Canadian companies like Almonty Industries are also expanding their influence in the U.S. sector through potential acquisitions.
Tungsten's unique properties make it a critical mineral for various industries. However, its supply chain dominance by China poses strategic risks. Efforts to diversify the supply chain are underway, with U.S. investments and companies actively working to reduce reliance on China. The growing market and increasing demand further emphasize the need for a secure and diverse tungsten supply.
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