At Extreme Investor Network, we provide expert insights into the world of finance, with a focus on critical minerals and their impact on the global supply chain. In a recent article, we explore the current state of tungsten, a vital material used in weapons, autos, electric car batteries, semiconductors, and industrial cutting machines.
China currently dominates the supply chain for many critical minerals, but surprisingly, it has not implemented sweeping restrictions on tungsten. This metal, known for its hardness and high energy density, is essential for various industries, including chipmakers like Taiwan Semiconductor Manufacturing Company and Nvidia.
Despite tensions in global trade, Lewis Black, CEO of Almonty Industries, believes that there won’t be any significant issues concerning tungsten supply. Black mentioned that “tungsten has always been a diplomatic metal,” underscoring its importance in maintaining stable international relations.
While the Biden administration recently increased tariffs on tungsten imports, China did not include the metal in new regulations for rare earths production. This decision indicates China’s intention to avoid escalating tensions with other countries.
As the demand for non-Chinese tungsten rises, efforts to diversify away from China are gaining momentum. Almonty Industries is set to open a tungsten mine in South Korea, potentially producing half of the world’s ex-China tungsten supply. This move aligns with growing global efforts to secure critical minerals from non-Chinese sources.
With soaring tungsten prices and expectations for higher demand, the market is experiencing a shift. The U.S. is transitioning from a net seller to a buyer of tungsten, underscoring the need for a diversified supply chain.
To address this demand, companies outside of China are exploring opportunities in countries like South Korea. IMC Endmill, an affiliate of the Warren Buffett-owned IMC Group, recently invested in a tungsten powder manufacturing facility in South Korea, showcasing the trend of non-Chinese companies entering the tungsten supply chain.
At Extreme Investor Network, we offer in-depth analysis and unique insights into the evolving landscape of critical minerals. Stay tuned for more updates on the latest trends and developments in the world of finance and investments.