The supply crisis may affect the entire industry.
By early May 2026, tungsten had risen in price by 900% year-on-year and by 350% since January. The main reason is the export restrictions imposed last year by the leading producer, China, but the war in the Persian Gulf has exacerbated the situation. Media reports indicate that the U.S. is actively seeking tungsten needed for the production of new munitions to replace those used in strikes against Iran. Washington itself imports the refractory metal. Forbes examined why tungsten is so critically important (and not only for weapon production) and why the U.S. and Russia are racing to reactivate giant deposits that have been abandoned for many years.
The name "tungsten" dates back to the Middle Ages. This metal was found in tin ores, and during smelting, part of the tin turned into slag foam due to impurities, which is why German craftsmen dubbed it Wolf Rahm, meaning "wolf foam," as it "tears apart tin and devours it like a wolf devours a sheep." Since the early 20th century, this metal has been used in electric lamps, and during World War II, due to its resistance to high temperatures and strength, it became an important raw material for the arms industry.
In the war against Iran, the U.S. used a vast amount of munitions, including Tomahawk, Patriot, and Precision Strike missiles, NBC reports. "To replace them, a super-strong metal tungsten is required, the production and processing of which are mainly concentrated in China, forcing the U.S. to desperately seek it elsewhere," the report states. NBC reminds that tungsten has not been mined in the U.S. since 2015, and the administration of President Donald Trump has already set the goal of reducing dependence on Chinese shipments.
According to the U.S. Geological Survey, global tungsten production in terms of pure metal increased by 4% year-on-year in 2025, from 82,000 to 85,000 tons. China mined 67,000 tons last year, or about 80% of the total global tungsten volume. Following it at a significant distance was Vietnam with 3,000 tons, and Kazakhstan was in third place with 2,400 tons. Russia and North Korea share fourth place with a production volume of 2,000 tons.
South Korea is absent from the list, although, as NBC reported, the American company Almonty Industries revived the Sangdong mine located in this country in March of this year to replace Chinese supplies. It was closed more than 30 years ago because it was impossible to compete with cheap Chinese metal. The mine can currently produce 2,300 tons of tungsten concentrate per year, containing approximately 1,185 tons of metal, and by 2027 this volume will double to 4,600 tons (2,370 tons in terms of pure metal). Additionally, Almonty intends to build a tungsten mine in the U.S. itself, in Montana, and the American investment company Cove Capital created a joint venture with the Kazakh state company Tau-Ken Samruk in November of last year to develop a large tungsten deposit in the eastern part of the Central Asian state.
Prices Soared
Tungsten is not traded on exchanges; its price is actually formed through negotiations between consumer enterprises and producers when contracts are concluded, said Sergey Grishaev, Director of Development and Strategy at the Association of Producers and Consumers of Rare and Rare Earth Metals (Association of RM and REE), to Forbes. The cost of tungsten products is typically calculated based on the price per metric ton unit (MTU) of ammonium paratungstate (APT), which includes insurance and freight for delivery to the port of Rotterdam. APT was chosen as a convenient indicator because it represents a highly purified intermediate product from which tungsten carbide for cutting tools and pure metal is obtained. The price of tungsten-containing products is calculated with a discount or premium to APT. One MTU equals 10 kg, and one MTU of APT contains approximately 7.93 kg of pure tungsten.
Tungsten prices surged after China imposed export restrictions last year and reduced quotas for its mining this year. On February 5, 2025, China introduced an export control regime for several types of dual-use raw materials, including tungsten, "to protect national security and interests, as well as to fulfill international non-proliferation obligations." The country is also the largest importer of tungsten-containing products. In 2025, China imported 12,139 tons of such products in terms of the metal contained in them, 39.5% more than in 2024, and exported 13,096 tons, 20% less year-on-year. By early May 2026, the price of APT in Europe was around $3,185 per MTU, having risen by 350% since the beginning of the year and by 900% year-on-year.
Not Just Munitions
The refractory metal is used not only in munitions; tungsten is applied in the production of carbide tools (drill pipes, turning tools), alloyed steels, electrodes, and filaments, as well as chemical compounds—catalysts and reagents. For this reason, weaponry is far from being the primary application area for tungsten by volume.
Additionally, one of the metal's compounds—tungsten hexafluoride—plays an important role in memory chip production. This substance can form ultra-thin tungsten films that fill microscopic contacts inside chips and allow them to withstand extreme temperatures. Tungsten alloys are also used in the production of internal combustion engines.
China's restrictions have not only impacted the U.S. The countries most dependent on Chinese tungsten remain Japan, South Korea, and European countries, where the metal is critically important for semiconductors, defense, and aerospace industries, as well as for the production of various tools.
Global manufacturers of carbide tools, automobiles, and machinery, such as Japan's Sumitomo Electric and Mitsubishi, Germany's Volkswagen, Mercedes-Benz, and Rheinmetall, as well as South Korean memory chip producers Samsung and SK Hynix, and many manufacturers of medical equipment, armaments, and aerospace industries are under pressure, experts note.
