Why the Tungsten Shortage Threatens SpaceX and Siemens Healthineers—and How Almonty Is Becoming the West's Top Supplier

SpaceX: No Engines Without Tungsten

High-tech pioneers like SpaceX regularly push the boundaries of physics when developing modern launch vehicles. In space rocket engines, temperatures in the combustion chambers reach well over 3,000°C, and pressures exceed 100 bar. Conventional nickel-based alloys fail under these conditions. According to the metal distributor Chemetal USA, SpaceX is therefore increasingly using novel tungsten-copper composite materials, comprising a mixture of 85% tungsten and 15% copper, for thermal hotspots in the Raptor system. This material change is reportedly paying off for SpaceX. Thanks to the tungsten components, SpaceX quadrupled the service life of its nozzles from 120 to 450 flight cycles and reduced heat-induced deformation by 72%, Chemetal USA writes in a blog post. This saves the innovative company, led by Elon Musk, an estimated USD 1.2 million per rocket launch.

Siemens Healthineers: No Compromises on Medical Precision

In medical technology, too, there is no substitute for critical metals with unique properties. Siemens Healthineers uses tungsten in cancer radiation therapy to target tumours with pinpoint accuracy. In systems manufactured by the subsidiary Varian, wafer-thin tungsten lamellae effectively block dangerous gamma rays while protecting patients' surrounding tissue. The goal is to irradiate only the cancer, and nothing else. At its Kemnath production site, Siemens Healthineers significantly increased its manufacturing capacity by installing a fully automated robotic production line. This shows that such devices represent a source of hope for the company. Due to its high atomic number, tungsten absorbs radiation much more effectively than toxic lead, allowing for thinner protective walls. In addition, studies demonstrate the potential of tungsten-based contrast agents for computed tomography (CT) scans, as they significantly reduce blooming artifacts in calcified coronary arteries.

Almonty Awakens a Sleeping Giant with Sangdong

As the industry searches for reliable tungsten sources, Almonty is stepping into the spotlight. With the Sangdong mine in South Korea's Gangwon Province, the company owns one of the largest deposits outside of China. Following extensive rehabilitation work, Almonty extracted its first ore last December and launched its processing plant in July. To kick things off, the mine is drawing on a stockpile of 139,700 metric tons of ore with grades ranging from 0.25% to 0.35% tungsten trioxide, representing a gross value of approximately USD 68 million. The processing plant is designed to process 640,000 metric tons of ore annually in the initial phase, thereby producing approximately 2,300 metric tons of high-purity tungsten concentrate. Management plans to double ore throughput to 1.2 million metric tons as early as 2027, thereby doubling annual concentrate production to 4,600 metric tons. Following the expansion, Almonty will be able to meet approximately 40% of global tungsten demand outside of China.

Financially, the project rests on a solid foundation. Almonty recently extended its offtake agreement with Global Tungsten & Powders, a subsidiary of the Austrian Plansee Group, to a 21-year term, which is expected to provide the operation with contractually guaranteed revenues of approximately USD 490 million per year. This agreement covers 4.41 million MTU of concentrate with a minimum annual purchase of 210,000 MTU. This means that approximately 90% of the tungsten from the first production phase has already been sold. The neighbouring Sangdong molybdenum project provides further momentum for Almonty through an exclusive agreement with South Korea's SeAH Group.

Almonty Aims for Global Production: Fresh Capital on Top Terms

In addition to South Korea, the group is expanding strategically in North America and Europe. In October 2025, Almonty acquired the Gentung Browns Lake project in the US state of Montana. The mine has a fully approved rock mill and is scheduled to begin production in phases as early as 2026. Annual capacity stands at approximately 140,000 MTU of concentrate. In Europe, the Portuguese Panasqueira mine, which has been part of Almonty since 2016, is currently being expanded. The targeted annual output is 124,000 MTU. Two additional projects in Spain, which are not currently in operation, round out the portfolio. Operationally, the Group is already posting strong figures despite the current ramp-up at Sangdong. In the first quarter of 2026, Almonty increased its revenue by 221% year-over-year to CAD 25.4 million, with operating cash flow of CAD 9.7 million. **To finance further growth, Almonty issued a USD 700 million convertible senior notes offering in June with a 2.25% coupon and a dilution threshold well above USD 40. The stock is currently trading at around USD 14.

The tungsten shortage and the Pentagon's ban on tungsten imports starting in 2027 play right into Almonty's hands. Analysts at Diamond Equity Research rate the stock as significantly undervalued and view Almonty as an indispensable infrastructure asset for the Western world. The analysts see the fair price target for the shares at CAD 31.80. The planned expansion of the Sangdong mine and the start of production in Montana are growth drivers, according to the New York-based research firm.