Washington’s Tungsten Lifeline: How Almonty Industries Became a Pentagon Favorite

Tungsten prices hit record highs as China restricts exports, with Almonty Industries positioned as a key Pentagon supplier amid a US push for non-Chinese sourcing by 2027.

The scramble for critical minerals is reshaping global supply chains, and few companies are better positioned than Almonty Industries. The tungsten producer has become a central player in Washington’s push to reduce reliance on Chinese imports, with its stock surging over 620% in the past year as the strategic metal hits record prices.

Shares closed Wednesday at A$28.97, just shy of their 52-week high. The rally has been fueled by a perfect storm of geopolitical tension, export restrictions, and surging demand from both the defense and semiconductor sectors.

China’s Export Squeeze

Beijing’s tightening grip on tungsten supplies has been the primary catalyst. In early 2025, China replaced its quota system with a state-controlled licensing regime, allowing only 15 approved companies to export the metal. The impact was immediate: ammonium paratungstate (APT) shipments collapsed from 782 tonnes in 2024 to just 243 tonnes in the first 11 months of 2025. By early 2026, exports had effectively ground to a halt.

This supply shock has sent prices soaring. APT hit a record above US$3,100 per unit in April 2026, having traded at roughly US$1,944 in February. The price spike has been compounded by robust demand from defense contractors and chipmakers, who rely on tungsten hexafluoride for 3D-NAND memory production.

A Pentagon Mandate

Almonty’s strategic importance to the US has been underscored by a series of policy moves. The company’s tungsten ores, concentrates, and oxides have been explicitly exempted from reciprocal tariffs, and it supplies Global Tungsten & Powders in Pennsylvania under a long-term contract.

Starting January 1, 2027, the Pentagon will require all US defense contractors to source tungsten exclusively from non-Chinese suppliers. Tungsten Parts Wyoming has already signed a binding offtake agreement for at least 40 tonnes of tungsten oxide per month, earmarked for missiles, drones, and munitions.

Two Mines, One Strategy

Almonty is executing a dual-track production strategy. In South Korea, the Sangdong mine resumed operations in March after a 30-year hiatus. The Phase 1 facility processes 640,000 tonnes of ore annually and is expected to deliver around 2,300 tonnes of tungsten concentrate. Analysts at DA Davidson anticipate full capacity utilization by the second quarter of 2026. The ore grades about 0.51% tungsten trioxide — roughly three times the global average.

In Montana, the company is advancing the Gentung-Browns Lake project, which hosts mineral resources of 7.53 million tonnes. Production is slated to begin in the second half of 2026. The site will target an annual output of 140,000 metric tonne units, marking the first commercial tungsten mining in the United States in nearly a decade.

Almonty has relocated its headquarters to Dillon, Montana, positioning itself close to US defense agencies and funding programs. The move has already attracted competitors to the region, turning the Montana-Idaho corridor into a new hub for North American mineral exploration.

Institutional Stamp of Approval

The market is taking notice. Texas Capital initiated coverage on April 17 with a US$25 price target and a buy rating. B. Riley Financial and DA Davidson have set targets of US$23 and US$25, respectively. The number of institutional funds holding Almonty has jumped more than 55% to 107.

The company’s capital-raising efforts last year, including an IPO and follow-on financing in the hundreds of millions, have funded the expansion. The stock has gained roughly 119% year-to-date and has more than septupled from its 52-week low in May 2025. The relative strength index stands at 72, technically overbought but backed by strong fundamentals.

What’s Next

The board will decide on a previously authorized reverse stock split by April 30. The quarterly report in May will provide the first concrete production figures from Sangdong. And on June 8, shareholders will gather for the annual meeting, where details on the Phase 2 expansion are expected.

For Almonty, the next critical milestone comes in the second half of 2026, when the Gentung project must prove it can meet its ambitious production targets and physically close the gap in US supply security. With Washington’s support and a global tungsten market in turmoil, the company is betting that timing is everything.