Tungsten demand outpaces supply amid shift from China

Significance

China, the world’s largest producer of the metal, imposed 20% tariffs on tungsten concentrates in 2022 and has since restricted exports to protect domestic reserves. Its output fell by 4.6% in 2023. The supply crunch comes as demand rises from applications including tanks, jet engines, nuclear fusion reactor walls and solar panels.

Impacts

• Seeking more output, Toronto-based Almonty Industries is restoring an old Japanese underground tungsten mine in South Korea’s mountains.
• Self-sufficiency drives are rising; despite large reserves, China’s Ministry of National Security defines tungsten as a critical mineral.
• With parts of Myanmar’s territory in the hands of rebels, output from its reserves of tin-tungsten assets has been severely affected.