What's Happening?
The Sangdong mine in South Korea, operated by Almonty Industries, is set to become a significant source of tungsten for the United States. This development comes as the U.S. seeks to diversify its supply
chains away from China, which currently dominates the global market for rare earths and critical minerals. Almonty Industries' CEO, Lewis Black, has signed an agreement with U.S. officials to supply tungsten, a mineral vital for defense applications. The mine, which has a historical significance dating back to the early 20th century, is expected to be operational by early 2026, producing 1.2 million tons of tungsten ore annually.
Why It's Important?
The U.S. reliance on China for critical minerals has been a strategic vulnerability, especially amid ongoing trade tensions. Tungsten's applications in defense, such as in armor and missile guidance systems, make it indispensable. The Sangdong mine's output will help mitigate this dependency, enhancing U.S. national security. The move also reflects broader efforts to establish alternative supply chains for critical materials, a process that is expected to be challenging and time-consuming. The U.S. government's involvement underscores the strategic importance of securing these resources.
What's Next?
Almonty Industries plans to expand its operations, including a new mine in Montana, to further support U.S. supply chain independence. However, the transition away from Chinese materials will be gradual, requiring significant investment in infrastructure and workforce training. The U.S. may face disruptions in industries reliant on these materials during this period. The Sangdong mine is expected to be fully operational by the first quarter of 2026, with ongoing efforts to ensure a stable supply of tungsten to meet U.S. defense needs.
