In a recent development, U.S. government researchers paid a visit to a South Korean mine to assess the progress towards increasing the supply of tungsten, a critical metal used in various industries. This visit marks a significant step in the efforts to reduce dependence on China, which currently dominates over 80% of the global tungsten supply chain.
Tungsten is an extremely hard metal that is essential for the production of weapons, semiconductors, and industrial cutting machines. With China’s stronghold on the market, there has been a growing concern over the reliance on a single country for such a crucial resource.
The Sangdong Mine, owned by a subsidiary of Canada-based Almonty Industries, is gearing up to resume operations this year. The mine has the potential to produce up to 50% of the world’s tungsten supply, apart from the dominance of China. The U.S. Geological Survey, a government agency analyzing natural resources availability, sent four mineral resource scholars to assess the mine’s capabilities.
The U.S. government has not commercially mined tungsten since 2015, leading to concerns about the country’s reliance on foreign sources for critical minerals. The Biden administration has identified critical minerals as a national security concern and has announced tariffs on tungsten and other essential resources to boost domestic production.
While China has not applied export restrictions on tungsten yet, the increasing leverage in the global supply chain has raised concerns. There are expectations that Beijing may implement stricter export controls, following restrictions on a similar metal called antimony. The possibility of new export controls in response to trade disputes, as suggested by experts, poses a challenge to the global supply chain.
In response to the growing challenges in the critical minerals supply chain, the U.S. government has taken steps to encourage domestic mining and processing. The visit to the Sangdong Mine in South Korea signifies a crucial effort to diversify the supply chain and reduce dependence on a single source. As the global market for critical minerals evolves, it becomes imperative for nations to collaborate and develop sustainable solutions to ensure a stable supply for essential industries.