Recent visits from U.S. government researchers to the Sangdong Mine in South Korea reveal efforts to boost the supply of tungsten, a critical metal essential for various industries. The mine, owned by Almonty Industries, has the potential to produce 50% of the world’s tungsten supply outside of China, which currently dominates over 80% of the metal’s supply chain.
The U.S. has not commercially mined tungsten since 2015, leaving the country reliant on foreign sources for critical minerals. With China’s increasing control over the global supply chain and potential export restrictions on essential metals like antimony, there is a growing need to diversify and reduce dependence on Chinese resources. The Biden administration’s tariffs on tungsten and other critical minerals highlight the importance of strengthening national security through domestic production.
The threat of escalating trade tensions between the U.S. and China underlines the risks associated with relying on a single source for critical minerals. The possibility of Beijing using export controls as a retaliatory measure in response to tariff hikes or geopolitical conflicts could disrupt global supply chains and impact industries reliant on tungsten and other essential metals. The U.S. Energy Department’s efforts to incentivize domestic mining and processing of critical minerals demonstrate a proactive approach to reducing vulnerabilities in the supply chain.
Future Outlook
As countries adapt to the changing geopolitical landscape and navigate through economic uncertainties, there is a growing emphasis on securing stable sources of essential resources like tungsten. Diversifying the supply chain and investing in domestic production are crucial steps towards enhancing national security and ensuring a sustainable foundation for industries that depend on critical minerals. By fostering partnerships between government agencies, mining companies, and research institutions, countries can mitigate risks associated with overreliance on a single source for essential metals. The dynamic nature of global trade relations and evolving geopolitical factors necessitate strategic planning and proactive measures to safeguard the availability of critical minerals for future generations.