China’s tungsten supply tariffs bad for defense and tech industries
China announces new export controls on 25 rare metals, including tungsten, which are critical to modern technology. China said new export controls are on in retaliation to 10% tariff by Trump on all US imports from China.
China dominates global tungsten supply with more than 80% of the world’s mining and processing in 2023, as well as 58% of World’s reserves at 2.3 million metric tons. China’s dominance is increasingly seen as a strategic vulnerability by the US, EU and Japan amidst escalating geopolitical tensions.
Tungstenis known as one of the strongest-known naturally-occurring materials and is critical across modern technology, from smart phones to hypersonic missiles.
It is listed as a critical mineral in many countries for the following reasons:
- military: accounting for 12% of demand, with the highest melting-point of any metal, tungsten is essential across a range of military applications, including armour-piercing munitions, tank armour, and missiles
- technology: tungsten is crucial in the efficiency and durability of solar panels, semiconductors, and robotics
- electric vehicles: electric vehicles need approx 2kg of tungsten for gearing systems, battery anodes and cathodes, as well as about 2,000 wiring looms in the vehicle’s semiconductors
- tungsten is also used in mining equipment, energy production, construction, and aerospace
