Almonty Industries: Wolfram's Strategic Linchpin Secures Tariff Exemption and Production Momentum

Almonty Industries gains US tariff exemption for tungsten, positioning it as a key supplier for defense contractors facing a 2027 China sourcing ban. Its stock surges as production ramps up.

The U.S. Department of Defense has secured a landmark $400 million deal for rare earths, but the reverberations are being felt most acutely in the wolfram sector. Almonty Industries Inc., a key non-Chinese producer, has just received official U.S. government exemption from new punitive tariffs on its tungsten products. This move, coupled with explosive price action and imminent production growth, solidifies the company's role as a strategic linchpin in Western supply chain decoupling efforts.

Almonty's stock surged over 15% in a single session on the news of its corporate relocation from Toronto to Dillon, Montana, last week. The move is far from symbolic. It positions the company closer to U.S. defense agencies, prime contractors, and its own Gentung tungsten project in Montana, acquired in late 2025 and slated for production start later this year. The share price, now at C$30.66, marks a new 52-week high and has more than quadrupled since the start of the year.

The tariff exemption arrives as a critical deadline looms for American defense contractors. Starting January 1, 2027, U.S. law will prohibit them from sourcing tungsten through Chinese supply chains. With China, Russia, and North Korea dominating global output, Western alternatives are scarce. Almonty has proactively secured a binding offtake agreement with Tungsten Parts Wyoming, guaranteeing a monthly supply of at least 40 tonnes of tungsten oxide exclusively for U.S. missile, drone, and munition systems.

Operational execution is now the focal point. The company's flagship Sangdong mine in South Korea is on the cusp of commercial production, expected to begin in the second quarter of 2026. The mine processes approximately 640,000 tonnes of ore annually with a wolfram trioxide grade of 0.51%, triple the global average. A planned Phase 2 expansion aims to double Sangdong's processing capacity to 1.2 million tonnes of ore per year by 2027. At full capacity, Sangdong alone could supply an estimated 40% of global tungsten demand outside China.

Financially, Almonty is well-equipped for its U.S. expansion. The company's treasury holds a robust C$268.4 million, bolstered by recent oversubscribed financings. These funds will support bringing the Gentung Browns Lake project in Montana online in the second half of 2026, which would mark the first domestic U.S. tungsten production in over a decade.

The macro backdrop is extraordinarily favorable. The spot price for tungsten APT skyrocketed 534% by mid-March 2026, reaching $2,250 per tonne. Analysts at BMO forecast a persistent supply deficit for the year, noting a lack of short-term solutions. This price explosion occurs alongside China's recent tightening of export controls on critical minerals like antimony, further straining non-Chinese supply.

Despite a recent net loss of approximately C$65 million, analyst sentiment remains strongly positive with a unanimous "Strong Buy" rating. The average price target stands at C$23.71, with a range from C$7.50 to C$36. The company has also deepened its Pentagon ties through a partnership with American Defense International and by appointing retired four-star General Gustave Perna to its board.

The coming weeks will deliver crucial operational data. Almonty is scheduled to release its first quarterly production figures from Sangdong in May 2026, followed by an Annual General Meeting on June 8 where details on the Phase 2 expansion are expected. The market's re-rating of Almonty reflects a broader trend of sharp differentiation among critical minerals developers, rewarding those with near-term production and tangible strategic advantages. For now, Almonty sits at the confluence of geopolitics, scarce supply, and operational delivery.