China is known for dominating the supply chain for many critical minerals, but surprisingly, it has not imposed sweeping restrictions on tungsten, a metal that is highly valued for its hardness and energy density. Tungsten is used in a wide range of industries, including weapons, automobiles, electric car batteries, semiconductors, and industrial cutting machines. Chipmakers such as Taiwan Semiconductor Manufacturing Company and Nvidia rely on tungsten in their production processes.
Despite its importance, tungsten has always been seen as a diplomatic metal, according to Lewis Black, CEO of Almonty Industries, a Canada-based company that is investing in reopening a tungsten mine in South Korea. Black believes that China has refrained from imposing restrictions on tungsten to avoid escalating tensions with other countries.
While the Biden administration recently raised tariffs on tungsten imports, China did not include the metal in new regulations aimed at increasing oversight of its rare earths production. This move by China suggests that the country is not overly concerned about the tariffs imposed by the U.S.
Black is optimistic about the potential for his company to benefit from efforts to diversify away from Chinese tungsten. Almonty claims that the mine in South Korea has the potential to produce 50% of the world’s tungsten supply outside of China. Demand for non-Chinese tungsten is on the rise, with countries like the U.S. and Europe seeking to establish China-free supply chains.
The soaring prices of tungsten reflect the increasing demand and limited supplies of the metal. Chinese buyers have been increasing their purchases of tungsten, indicating a shift in the market dynamics. As the U.S. faces a potential shortage of tungsten, there is a growing need to secure a stable supply of the metal from sources outside of China.
Other non-Chinese companies are also looking to invest in tungsten production, with projects in South Korea gaining traction. IMC Endmill, an affiliate of Warren Buffett’s IMC Group, recently signed an agreement for a significant investment in a tungsten powder manufacturing facility in South Korea.
Efforts to produce tungsten outside of China have faced challenges in the past, with projects languishing for years. Almonty’s plans to reopen the tungsten mine in South Korea represent a step towards diversifying the global supply chain for tungsten. However, Black emphasizes that the company does not intend to compete directly with Chinese producers, as it aims to maintain a small share of the global tungsten market.
Overall, the dynamics of the global tungsten market are evolving, with increasing demand and limited supplies driving prices higher. As countries seek to reduce their dependence on Chinese tungsten, there is a growing opportunity for projects outside of China to establish a foothold in the market. Almonty’s investment in the South Korean tungsten mine reflects this trend towards diversification and security in the critical minerals supply chain. Entonces traduce al español y devuelve solo el texto en español. Guarda las etiquetas HTML. No devuelvas la versión en inglés. No me repitas. No me devuelvas el texto enviado. Solo proporciona el texto en español.