Tungsten in Focus: Almonty's Strategic Position and the Battle for Western Resource Sovereignty – Implications for SpaceX and Sandvik

A Market in Structural Deficit

The effects of geopolitical decoupling are driving unprecedented market dynamics. Prices for tungsten products have risen sharply in recent months. According to recent reports from Global Market Insights, the global tungsten market was estimated at approximately USD 7.3 billion in 2025 and is projected to grow to over USD 11.6 billion by 2035. The short-term forecasts from The Business Research Company are even more aggressive, projecting a growth rate of 8.7% for 2026. The supply shortage has driven the price of ammonium paratungstate (APT) to record levels of USD 3,040 per MTU. Market experts expect the price of APT to stabilize at a high level. A continued pursuit of record highs cannot be ruled out.

Almonty Industries: The Guardian of Western Supply

Almonty Industries is at the center of efforts to achieve self-sufficient Western tungsten supply. The company, which recently relocated its headquarters to the US, has positioned itself as one of the leading non-Chinese tungsten producers through a far-sighted consolidation strategy. Its flagship is the Sangdong mine in South Korea, which was successfully brought back online in March after more than 30 years of inactivity. This facility is initially designed to process 640,000 tons of ore annually, enabling the production of approximately 2,300 tons of tungsten concentrate per year. Upon completion of the planned expansion phase in 2027, capacity will increase to 1.2 million tons, meaning Almonty is expected to produce over 40% of the world's tungsten outside of China. According to CEO Lewis Black, the material from Sangdong is characterized by exceptional purity, as typical impurities such as uranium or phosphorus are practically absent. This simplifies further processing for both civilian and military applications.

To deepen its integration into the US defense ecosystem, Almonty relocated its headquarters to Dillon, Montana. This location is in close proximity to the recently acquired Gentung Browns Lake Tungsten project, which is scheduled to begin production by the end of 2026. Additionally, Almonty has strategically strengthened its board with former US generals to solidify relations with the Pentagon. The company is also driving growth in Europe. A drilling program is underway at the Panasqueira mine in Portugal to develop deeper zones and thus secure an annual production target of 124,000 MTU. In Spain, the company plans to develop the Valtreixal project as an open-pit mine following approval. Financially, the company recently reported improved results.

The Lewis Black Doctrine for a Western Tungsten Ecosystem

Despite its increasingly dominant strategic position, CEO Lewis Black advocates a notable philosophy: in a recent post published on the company's website, he explicitly expresses his hope that potential Western competitors will also successfully bring additional mines into operation. This mindset stems from the realization that major customers such as Sandvik or Rheinmetall need multiple reliable sources to secure their supply chains. If Almonty were to remain the sole supplier, these customers would ultimately have to purchase their finished components in China, which would hinder the entire Western manufacturing industry in the long term. Successful Western competition would also lead to transparent pricing that could no longer be manipulated by Chinese subsidies.

Sandvik and SpaceX: The Industry's Insatiable Demand

The enormous demand from industry underscores the importance of a stable Western tungsten ecosystem. The Swedish Sandvik Group is a global leader in cutting tools and mining equipment, whose performance relies heavily on tungsten carbide. To secure its supply, Sandvik controls the entire value chain, from the state-of-the-art mine in Mittersill, Austria, to the final powder, through its subsidiary Wolfram Bergbau und Hütten AG. Since raw material shortages pose a constant risk, Sandvik has set itself the ambitious goal of increasing its waste circularity to 90% by 2030 to become more independent through recycling. In practice, however, the recycling of tungsten often reaches its limits.

On the other hand, companies like SpaceX are driving a sharp rise in demand. Elon Musk's company, valued at USD 1.5 to USD 2 trillion ahead of its IPO, uses tungsten for engine components and heat shields in its reusable Starship program due to its extreme heat resistance. The high-density metal also plays a central role in military initiatives such as the Golden Dome missile defense shield. Nuclear fusion could become another massive driver of demand. Reports identify SpaceX as a potential system integrator for Helion Energy's facilities, where plasma temperatures of 150 million degrees Celsius were already demonstrated in 2025. For such commercial fusion reactors, tungsten is the only realistic material for the inner walls. Should this technology scale up industrially in the coming years, the already massive demand for tungsten will reach new heights, making the current supercycle appear only as an early phase of a much larger structural trend. Almonty is perfectly positioned for this scenario.