While Ukrainian President Volodymyr Zelensky meets with German Chancellor Friedrich Merz in Berlin today, market attention is turning to a critical but widely underestimated commodity: tungsten. In an increasingly confrontational global environment, the importance of strategic metals is growing – not only for the defense industry, but also for the energy and tech sectors. And right in the middle of it all is Almonty Industries Inc. (TSX:AII), an up-and-coming producer with projects in Portugal and South Korea, preparing to make the Western world independent of Chinese tungsten supplies. Read more in the report.
The battle for a rare metal – and a company at the center
The global security situation is coming to a head. NATO countries are massively increasing their defense spending, while at the same time dependence on raw materials from geopolitically unstable regions such as China, Iran, North Korea, and Russia is considered a serious weakness. Around 90% of the global tungsten supply of around 100,000 tons is currently controlled directly or indirectly by Chinese companies. Given Chinese and Western sanctions, one thing is clear: defense production cannot rely on hostile supply chains forever.
Almonty in the starting blocks
The US currently requires around 10,000 tons of tungsten annually to meet its defense and high-tech needs. Almonty (TSX:AII) currently supplies around 900 tons from Portugal, but with the Sangdong mine in South Korea nearing completion, it is aiming for 4,000 tons per year in the medium term – with the option of doubling production in the short term. These figures underline Almonty’s potential to become a critical supply lifeline for the West. Dependence on the East could be reversed – with Almonty as the key player. The Company is currently relocating its headquarters from Canada to the US – a strategic move that aligns with plans for a NASDAQ listing. With the move to one of the world’s most liquid stock exchanges, the stock will likely gain significantly in visibility and trading volume.
Geopolitics meets resource scarcity
Added to this situation is the ongoing geopolitical uncertainty. US President Donald Trump is once again talking about modernizing the US military and the need to stand firm against Russia and other powers. Even peace efforts with Putin have so far had no lasting effect. This continues to drive Western nations to invest in security, thus fueling demand for tungsten.
Dependence on tungsten is critical
However, it is not just military technology that requires this metal. Tungsten is used in energy technology, aviation, medical technology, and even in smartphones such as the iPhone – for example, in vibration components. Demand is growing across many sectors. The problem: New tungsten projects often fail due to environmental regulations, permits, or lack of financing. This is where Almonty stands out: The projects have been approved, the infrastructure is in place, the demand is there, and the geopolitical momentum is on their side.
Conclusion: The “small metal” with big potential
Almonty Industries is on the verge of a breakthrough. CEO and major shareholder Lewis Black leads the Company with a clear focus on investor interests. After around ten years of development work in South Korea, the Sangdong mine is about to start production – in the midst of a geopolitical environment that is causing demand for Western-controlled tungsten sources to escalate.
Over 100% upside potential
Analysts see enormous potential: Sphene Capital recently raised its price target from CAD 5.20 to CAD 5.40 – more than 100% price potential from the current level of CAD 2.60. However, anyone who understands the dynamics of this market knows that if the NASDAQ listing is successful and panic over supply security continues to rise, even this price target is only a stopgap. Tungsten is becoming the strategic currency of the future – and Almonty is set to be a game changer and takeover candidate.
Conflict of interest
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