Tungsten's Rising Demand Sparks Global Race for Secure Supply
Tungsten, a metal renowned for its exceptional heat resistance and strength, is grabbing global attention due to its crucial role in high-performance industries. This increased focus comes as China controls over 80% of the global tungsten supply, sparking concerns about supply chain resilience. In response, countries are exploring new sources and investing in domestic projects to reduce reliance on Chinese imports.
In September 2025, Elemental Altus Royalty, now operating as Elemental Royalty Corp. following a merger with EMX Royalty, is at the forefront of these efforts. The company's focus on tungsten royalties and streaming positions it well to benefit from the growing demand and tight supply that has seen tungsten bar FOB prices hold steady at USD 95-97 per kg.
Key demand drivers for tungsten include electronics and semiconductors, defense and aerospace, industrial tools, and green technology and electrification. The U.S., for instance, relies heavily on imports, predominantly from China, posing strategic risks for its defense and high-tech industries. To address this, the U.S. Department of Defense is investing millions in domestic tungsten projects and tightening procurement rules, aiming to phase out tungsten from adversarial nations by 2027.
Meanwhile, countries are diversifying their tungsten supply chains. New projects in Australia, South Korea, Canada, and Africa show promise, but scaling up production will take years. The global tungsten market, which expanded from USD 6.04 billion in 2024 to USD 6.50 billion in 2025, is projected to grow at a rate of 7.95%, reaching USD 11.16 billion by 2032. This growth has attracted investor attention to tungsten stocks, such as Elemental Altus Royalties Corp. (ELE.V) and American Tungsten (TUNG).
As tungsten's strategic importance grows, so does the need for a diverse and secure global supply chain. Companies like Elemental Royalty Corp. and governments worldwide are investing in domestic projects and exploring new sources to reduce reliance on Chinese imports. With a projected market growth of over 7% and stable high prices, the tungsten industry is poised for significant growth in the coming years.
