The simultaneous ongoing wars in Iran and Ukraine are rapidly depleting global tungsten resources. Tungsten is used in military products such as armor-piercing projectiles, as well as in drill bits, industrial equipment, and electronics manufacturing. With rising military demand, both the United States and Europe are seeking new, stable sources.
China still dominates global supply.
China remains the core of the global tungsten supply. The report cites data showing that global tungsten production in 2024 was approximately 81,000 tons, with China accounting for the largest share, reaching up to about 80%, while the United States produced virtually nothing. Global supply has tightened further since China began restricting exports in February 2025, citing national security concerns.
The development of alternative mineral resources is being accelerated.
Amid tight supply, projects in Kazakhstan, South Korea, and Portugal are gaining more attention. An affiliate of Australian mining company Cove Capital is advancing a tungsten mine development in Kazakhstan, aiming to convert underdeveloped local reserves into new supply.
Cove Kaz expects the project to produce 12,000 tons annually once fully operational, roughly equivalent to 15% of current global annual mine production. The company is currently advancing engineering studies and construction plans for the mine and refining facilities, with plans to commence construction within the next 18 months, but has not yet provided a timeline for full production.
Meanwhile, Canadian miner Almonty Industries is also expanding its operations. Its Sangdong tungsten mine in Gangwon Province, South Korea, completed its first phase of commissioning in March of this year, marking the resumption of production at the deposit after more than 30 years of shutdown. Almonty also has operating mines in Portugal and has expressed interest in developing tungsten mines in the United States.
The US will tighten its procurement policies in 2027.
The United States' focus on tungsten stems not only from rising prices but also from defense supply security. The report mentions that new procurement rules from the U.S. Department of Defense will take effect on January 1, 2027, restricting the use of tungsten metal powder and heavy alloys mined, refined, and produced in China.
This means that the US military industry and related manufacturing systems need to establish alternative supply chains more quickly. Market estimates indicate that the US alone may require as much as 20,000 tons of tungsten annually in the future, not including additional needs such as national defense stockpiles.
Trump family investments under scrutiny
The Kazakhstan project has garnered more attention because its capital arrangements involve the Trump family. Reports indicate that Donald Trump Jr. and Eric Trump previously invested in Skyline Builders Group, which subsequently merged with Cove Kaz Capital on April 30th of this year. The company plans to rename itself Kaz Resources after the transaction, with the process expected to be completed by the end of 2026 or early 2027.
The specific investment amounts by the two individuals have not yet been disclosed. Because the transaction involves key mineral resources and national security issues, US lawmakers and oversight agencies have requested a review of the dealings. A spokesperson for the Trump Organization stated that the Trump family was not involved in the merger transaction and has always been a passive investor in Skyline Builders Group, without assuming a management role.
Additional information:The report mentioned that the U.S. government has pledged up to $1.6 billion in support for critical mineral projects through channels such as the Export-Import Bank of the United States, indicating that critical metal supply chains are being incorporated into a more explicit national security agenda.
