Why is tungsten demand rising?
The tightening of supply is happening just as demand is increasing, not just in the rest of the world, but also in China which has switched from being a net exporter of tungsten, to being a net importer of tungsten.
Most importantly, tungsten is critical to national security and defense infrastructure in an increasinsly volatile world, from Ukraine to the Middle East:
- military demand, from helicopters to fighter jets, armour piercing ammunition to bullet-proof vehicles, is expected to increase 12% in 2026. And note, once fired, the metal cannot be recycled.
- semiconductors
- electric batteries
- and then there’s mining itself, where tungsten is used across drilling, machines and mining across a range of metals and ores — just as prices rise almost across the board
Is the tungsten market in long-term deficit?
The tungsten market is in severe and structural deficit. And new supply coming online is limited, scarcity of high-grade deposits, and high upfront costs that are limiting supply.
Non-China production rose by 20% yoy to 19,000 tons in 2025, but this was largely down to the start of the China-controlled Boguty mine in Kazakhstan. US mining investment company Cove Capital signed a deal in November 2025 to lead development of another large tungsten deposit in Kazakhstan, backed by $900 million from the US Export-Import Bank. The challenge is that Kazakhstan is a country caught a ‘great game’ for resources between China, Russia, Europe and America.
In Vietnam, the second largest tungsten producer outside China, the Nui Phao mine operated by Masan Resources contributes significantly to global supply. However, the mine has seen production decline by 15% year-on-year in 2024, due to lower grades and throughput.
Australia, has world’s 2nd largest tungsten resources, but only one active tungsten mine at Mt Carbine mine, currently exploring US government funding opportunities.
Russia holds substantial tungsten reserves and is a significant producer. However, sanctions by the UK and EU, imposed in response to the invasion of Ukraine, are complicating trade and investment.
Aiming to fill the domestic production gap, American Tungsten started construction at its Ima project in Idaho. Between 1945 and 1957, the property produced approximately 199,449 metric ton units of tungsten trioxide.
South Korea’s Almonty Sangdong mine restart is nearing first production, moving to 2,300 tonnes in 2026, and 4,600 tonnes from 2027, with material bound for US markets — making it one of the most important new ex-China supply additions.
That leaves the ex-China market dependent on a narrow set of restarts, expansions and development projects, including Tungsten West’s Hemerdon restart in the UK, Fireweed’s Mactung project in Canada, EQ Resources’ European operations, and smaller US and Australian projects.
