Tungsten's Role in U.S. Defense Supply Chains Faces New Challenges

Tungsten, a critical mineral essential for various industries including defense, is facing supply chain challenges due to China's dominance in production and recent export controls. China has historically produced around 80% of the world's tungsten, and new restrictions imposed in February 2025 have led to a dramatic price increase, with costs soaring from approximately $335 to over $2,900 per metric ton in just 17 months. This situation is exacerbated by rising military demands amid global conflicts, which are straining both defense and civilian supply chains. In response, the U.S. government has initiated negotiations to address national security risks associated with reliance on imported tungsten, while looking towards Australia as a potential partner for securing future supplies.

Key Details: • China controls about 80% of global tungsten production. • Export controls from China began in February 2025, leading to a price increase of approximately 810%. • The U.S. government is negotiating to reduce dependence on imported tungsten and other critical minerals. • Australia is being considered as a key partner for securing tungsten supplies.