Almonty Industries Secures Key Defense Contract Amid Supply Chain Shift

Almonty Industries signs a 3-year US defense off-take agreement as institutional holdings surge 55%. The move capitalizes on China's export restrictions and a 160% tungsten price rise.

Almonty Industries is making tangible progress with its North American expansion strategy, capitalizing on growing geopolitical concerns over mineral supply chains. The tungsten producer has now secured a definitive off-take agreement linked specifically to U.S. defense applications, a move that coincides with significant project advancements.

Institutional Confidence and Market Performance

The company's strategic positioning outside of Chinese-dominated supply lines is drawing increased attention from major investors. Data from the last quarter shows the number of institutional funds holding Almonty shares surged by more than 55%, reaching a total of 107. This growing institutional interest is reflected in the equity's performance: the stock currently trades at 21.52 CAD, marking a substantial year-to-date gain of nearly 79%.

A notable vote of confidence comes from asset manager Van ECK, which dramatically increased its position. The firm now holds over 11 million shares valued at approximately 99 million US dollars, underscoring fundamental belief in the company's operational timeline.

A Binding Agreement for Defense Supply

Almonty is not waiting for its U.S. production to come online before generating revenue from the defense sector. The company has finalized a binding purchase agreement with U.S. defense supplier Tungsten Parts Wyoming and Israeli processor Metal Tech. This contract guarantees the monthly delivery of a minimum of 40 tonnes of tungsten oxide for an initial three-year term.

Crucially, the supplied material is designated exclusively for U.S. defense applications, including systems for missiles, drones, and artillery. The agreement also incorporates a contractual price floor, indexed to prevailing market rates, which provides Almonty with protection against future downward price volatility.

Geopolitical Dynamics Fueling Expansion

The urgency behind Almonty's U.S. push stems from a fundamental shift in the market for critical minerals. China currently controls over 80% of global tungsten production and has recently imposed noticeable restrictions on exports. Compounding this, U.S. legislation will ban the import of Chinese tungsten for defense procurement starting in 2027. This combination of strict export controls and robust demand drove the tungsten price up by more than 160% in 2025.

To address the emerging supply gap in the West, Almonty is advancing a parallel production strategy across three continents:

• Südkorea (Sangdong): The first phase is already operational, with an expansion planned for 2027 to double tungsten output.
• USA (Montana): For the fully acquired Gentung Browns Lake project, the company is targeting production readiness in the second half of 2026.
• Portugal (Panasqueira): An extensive drilling program aims to enable mining at deeper levels and extend the mine's operational life.

With the impending production launch in Montana and its active supply contract, Almonty is solidifying its role within the Western defense supply chain.