US imports 100% of its tungsten consumption
Tungsten has not been mined commercially in the US since 2015, instead the US imported 6,550 metric tons of tungsten from January-October 2024, making it one of the world’s largest importers of tungsten. The leading sources of imports are:
- Republic of Korea, 20%
- Bolivia, 18%
- China, 20%
- Vietnam, 10%
Stockpiles have remained below 50 metric tons for the past decade. Now, the officially stated aim of the US is to reduce dependency completely on China, with some of the most significant steps taken incluing:
- the REEShore Act of 2022 encourages the extraction of rare earths, including tungsten, to secure US supply chain by 2025 — and prohibits the use of tungsten from China in military equipment by 2026
- in 2024, the Biden administration raised tariffs on tungsten concentrate, tungsten oxide and tungstate from China by 25%, taking effect on January 1, 2025.
- in December, 2024, the US Department of Defense announced a US$15.8million award to Canadian company Fireweed Metals Corp to accelerate the development of a tungsten mine at the Mactung site in the Yukon, Canada, which is one of the world’s largest undeveloped high-grade deposits of tungsten
Global supply
As concerns about tungsten supply security escalate, numerous countries are increasing their investments in the sector.
Vietnam: Vietnam is the second largest tungsten producer outside China, with the Nui Phao mine operated by Masan Resources contributing significantly to global supply. However, the mine has seen production decline by 15% year-on-year in 2024, due to lower grades and throughput.
South Korea, with the Sangdong Tungsten Project, estimates to be one of the largest tungsten resources in the world with the potential to produce 50% of the world’s tungsten supply (ex China). Production is expected to start in 2025.
Despite the toughness of the metal itself, the global supply of tungsten is cracking. The world’s largest supplier, China, is threatening export restrictions and the West wants to secure supply from elsewhere.
As the global supply network is rewired, there are opportunities ahead, but the sharp price spike of 2024 is a warning of more volatility ahead.
