Almonty Industries, Hensoldt, and Renk Group: Strategic moves for Europe's strength

Almonty Industries: The great hope in the tungsten market against China's dominance

The company Almonty Industries is increasingly coming into focus as a major player in the tungsten market – a commodity that China controls with around 90% of the global supply. According to CEO Lewis Black, this monopoly position could "cripple the industry". "We seem to be the only ones standing up to China's market dominance," he emphasizes. Since February 2025, China has been restricting the export of tungsten – a defiant response by Beijing to new US tariffs under President Trump.

This monopoly position could, according to CEO Lewis Black, "paralyze the industry." "We seem to be the only ones holding out against China's market dominance," he emphasizes. Since February 2025, China has been restricting tungsten exports – a defiant response from Beijing to the new US tariffs under President Trump.

"This is a serious situation," warns Black, because tungsten is indispensable: from semiconductors to armor-piercing shells, the metal is needed worldwide. The Almonty stock has multiplied in the last 24 months. Black sees his company as the "last man standing" – an assessment he underpinned on February 25 at the 14th International Investment Forum. Almonty is now on the verge of a milestone: the Sangdong mine in South Korea, once one of the world's largest tungsten mines, will begin its first phase of production in two to three months.

Between now and 2026, the Company plans to use its own funds of USD 17 million to double its output and cover up to 10% of global demand. "The strategic importance of the Sangdong mine is demonstrated by a 15-year offtake agreement with the Plansee Group," explains Black. "It secures us revenues of USD 580 million and a minimum price of USD 235 per MTU with no cap" In the tungsten market, MTU stands for "Metric Ton Unit" and corresponds to 10 kg of tungsten trioxide (WO₃) – at 235 USD/MTU, Almonty will therefore receive the minimum price for this amount.

With a lifespan of over 90 years and tungsten content three times higher than the global average, Sangdong is becoming an indispensable resource for the West. This is crucial for defense contractors like Rheinmetall, which need hundreds of tons of tungsten for ammunition. But Black sets clear priorities: "The US and South Korea come first."

Hensoldt on record course: Defense boom thanks to billion-euro special fund

**Radar specialist Hensoldt is flying high: Since Reuters reported on the multi-billion special fund for defense and infrastructure in Germany, the share price has been on an upward trajectory. The coalition of the CDU and SPD is considering a fund of up to EUR 900 billion to upgrade the Bundeswehr and thus defense – a response to Trump's pressure on Ukraine and Europe's concern about a faltering US policy.

Hensoldt is already profiting from the developments. Analysts are raising the target price to EUR 47.59 after a strong annual result (EUR 2.2 billion in revenue) – an increase of 17%. The forecast for 2025 predicts EUR 2.61 billion in revenue, representing a growth of 16%.

For investors, it is a clear signal: the defense boom is boosting Hensoldt. But implementing it entails risks – a two-thirds majority in the German parliament is needed, and the Left Party remains skeptical about rearmament. Nevertheless, the market is betting on the security turnaround.

Renk Group: Propulsion for the security turnaround

Renk Group AG is also strengthening its position in the defense sector. The credit rating agency Moody's has given the Company a "Ba2" rating with a stable outlook, indicating a solid credit rating. The German transmission specialist reported a 23% revenue growth for 2024. In the fourth quarter, the order situation grew by 60%, with a firm order backlog of EUR 1.8 billion.

Renk is benefiting from its market leadership: around 70% of sales come from defense contracts, such as for tank and ship gear units. Renk is targeting an EBIT of EUR 300 million and an annual growth of 15% by 2027. This is supported by the acquisition of Cincinnati Gearing Systems, which strengthens the US naval base. Liquidity remains robust, with over EUR 100 million in cash and an unused credit line of EUR 75 million.

For investors, Renk could be a winner of the security turnaround: its strong position with NATO countries and a boom in orders ensure visibility. However, commodity price fluctuations and acquisition risks could slow the Company down. However, Moody's sees upside potential if debt continues to fall and fiscal policy remains conservative – a strong driver for the geopolitical chess game.

Almonty is positioning itself as a key player against China's raw material dominance in the tungsten sector. The South Korean Sangdong mine is proving to be a strategic trump card in the face of power shifts. Hensoldt is benefiting from the German defense boom and is convincing with strong revenue growth and a 17% share price increase. The prospect of multi-billion defense funds is driving the share price, but implementation depends on political agreement. The Renk Group is consolidating its role in the defense sector with a solid "Ba2" rating from Moody's and a booming order book supported by NATO partnerships. Revenue growth of 23% and US expansion through Cincinnati Gearing Systems promise stability.