This Metal Is Found in Many Weapons, AI Chips, and High-Tech Devices! Almonty Industries Meets Exploding Demand

Production In Sangdong Has Begun

In December 2025, something happened that many industry experts had deemed impossible. The first truckload of ore rolled into the processing yard of the Sangdong Mine in South Korea. After more than three decades of inactivity, one of the world's largest tungsten deposits returned to business. The operator's CEO emphasized at the time the crucial role this project plays in diversifying Western supply chains away from the Chinese monopoly.

Today, just a few months later, the celebratory mood has given way to industrial seriousness. The first phase of expansion is fully operational, and the plant is running according to schedule. What is happening here deep beneath the Korean earth could change the West's supply architecture for a generation.

Anyone who considers this development an exaggeration has not understood the market. Tungsten is no ordinary industrial metal. It is the material that makes rocket nozzles malleable and keeps semiconductor connections reliable. Demand from the defence industry has intensified further due to the ongoing conflicts in the Middle East. Various industry reports indicate that US stocks of tungsten-containing ammunition have dropped significantly. At the same time, the semiconductor industry is warning of shortages of tungsten hexafluoride. Japanese suppliers have reportedly informed Korean chip giants that their inventories will only last until the middle of the year.

China's export controls have artificially intensified this pressure. Strict licensing requirements have been in effect since February 2025, and additional bans on certain dual-use military goods to Japan have been in place since January 2026. As a result, the reference price for ammonium paratungstate skyrocketed to over USD 3,100 per MTU, an increase of more than 200% within a few months.

The key point, however, is that this price surge no longer appears to be a short-term phenomenon. Analysts at Bank of America raised their forecasts for 2026 to just under USD 2,900 per MTU, or 10 kg of tungsten trioxide (WO3). That is an increase of 65%. And even this figure could be on the low end, as recent market movements show.

An Asset With A Triple Advantage

Sangdong is not just any mine. The average ore grade of 0.51% WO3 is about three times higher than the global average. This means lower production costs, higher margins, and less technical risk. The planned mine life exceeds 45 years. In the first phase, 640,000 t of ore are to be processed annually, corresponding to just under 230,000 MTU of tungsten concentrate. A second expansion phase, scheduled to start in 2027, would double this capacity.

At full capacity, Sangdong alone could meet about 40% of total global tungsten demand outside of China. This is no longer a niche position; it is of systemic importance.

Management has deliberately prepared for this phase without expensive pre-sales or subordinated financing deals. Offtake agreements with fixed price floors but no price caps secure revenue. Two capital increases in 2025 raised over USD 200 million in gross proceeds. Accordingly, the company has enough capital to manage the ramp-up without acute financing pressure.

The North American Plan Takes Shape

Anyone who thinks Almonty remains purely a Korean play is mistaken. The strategic shift toward the US has already been completed. In April 2026, the company announced the relocation of its headquarters from Toronto to Dillon, Montana. Management justified this move not as a symbolic gesture, but as a clear expression of where the future lies: in building a Western tungsten supply chain free from Chinese dependencies.

The Gentung Project in Montana, a former producing mine, is scheduled to begin production in the second half of 2026. The planned capacity is approximately 140,000 MTU annually. A 15-year contract already covers over 90% of the first phase for US defence customers. In addition, former high-ranking US Army generals have been appointed as directors. This sends a clear message to the Pentagon.

What many overlook is that Almonty is now officially considered a US company, reports in accordance with US accounting standards, and thus meets the requirements for potential inclusion in US stock indices. This significantly broadens the shareholder base.

The Silent Capital That Does Not Appear On Any Balance Sheet

Perhaps the most important competitive advantage is something that does not appear on any balance sheet. It is specialized know-how. Knowledge of tungsten mining and processing has atrophied over the decades. Only two Western companies achieve recovery rates above 50%. Almonty is one of them.

The Moment Of Truth Is Drawing Near

The coming months will show whether the conservative planning pays off. The first reliable throughput data from Sangdong is due soon. The adjacent molybdenum project, one of the highest-grade deposits worldwide, is set to receive an updated resource estimate in June. In Portugal, the drilling program for the expansion of the historic Panasqueira mine is underway.

The fundamental equation is simple. A structural supply deficit meets demand driven by three megatrends: rising defence spending, the semiconductor supercycle, and the industrial renaissance of the West.

What The Analysts Are Saying

The price targets from the major firms range between USD 20 and just under USD 26. Cantor Fitzgerald cites USD 25.80, Texas Capital Securities and DA Davidson each cite USD 25, while Bank of America, B.Riley, and Diamond Equity Research are at USD 23. All agree that they do not expect a short-lived tungsten rally, but rather a multi-year phase of structural scarcity. The range reflects not so much doubt about the story as differing assumptions regarding the pace of production ramp-up in Korea and Montana.

The stock is currently trading at USD 17.45 on the NASDAQ.

Tungsten is not a short-lived fashion metal. It is the foundation upon which Western industries stand—or fall. Almonty Industries has awakened the Sangdong Mine from its slumber, pushed through its US strategy, and built a balance sheet that leaves room to maneuver. Tungsten prices are high, the contracts are long-term, and the margins are exceptional. Those who wait now risk not getting better data, but rather that the market has already priced in the next valuation step.