Nearly 80% of tungsten deposits are located in China. The metal's hardness is close to that of diamond and is used in the manufacture of weapons, cars, batteries for electric cars, semiconductors and chips.
Tense relations between the US and China are causing some investors to turn to South Korea. There, for example, by the end of the year, Canada-based Almonty Industries will invest 75 million USD in opening a tungsten mine. The mine has the potential to produce 50% of the world's tungsten supply, which now comes from China.
In May of this year, the Joe Biden administration raised tariffs on imports of the metal. At the same time, Chinese authorities have refrained from including the metal in new regulations to strengthen oversight of domestic production of rare earth elements.
Globally, there is already an increase in the demand for tungsten that is not Chinese. The US REEShore Act bans the use of Chinese tungsten in military equipment from 2026. The European Commission has extended tariffs on imported Chinese tungsten carbide for another 5 years , Almonty Industries recalls.