U.S. Ramps Up Efforts to Secure Critical Mineral Tungsten by 2027
The U.S. Department of Defense is ramping up efforts to secure a critical mineral, tungsten, investing millions in domestic and allied projects. This move comes as the global market for tungsten expands, driven by high demand in defense, aerospace, and electronics. The U.S., heavily reliant on imports, aims to phase out adversarial tungsten by 2027.
Tungsten, renowned for its unmatched heat resistance and strength, is vital for high-performance applications. However, the U.S. currently has no domestic tungsten production, importing over 10,000 metric tons in 2023, mostly from China. China controls over 80% of global supply and holds more than half of the known reserves.
To diversify its supply chain, the U.S. is investing in domestic projects and new procurement rules. Almonty Industries is considering acquiring a U.S. tungsten deposit, while Guardian Metal Resources is advancing projects in Nevada. Meanwhile, other countries like Australia, South Korea, and Canada are exploring new tungsten sources, despite high costs and technical challenges.
The global tungsten market grew from USD 6.04 billion in 2024 to USD 6.50 billion in 2025, with a projected CAGR of 7.95% to reach USD 11.16 billion by 2032. Key demand drivers include electronics, defense, industrial tools, and green technology. As demand rises and supply tightens, tungsten stocks are gaining investor attention, with companies like Elemental Altus Royalties Corp. (ELE.V) and American Tungsten (TUNG) seeing increased momentum.
The U.S. Department of Defense's efforts to secure tungsten by 2027 aim to reduce strategic risks for defense applications and high-tech industries. As the global tungsten market expands, driven by diverse demand, securing reliable and diverse supply chains will be crucial for the U.S. and other countries.
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