Tungsten shortage escalates in the US and Europe amid Chinese export controls
The US and Europe are facing a severe shortage of tungsten, crucial for military factories and advanced technology sectors. China, responsible for over 80% of global tungsten production, added tungsten to its export control list in February 2025, resulting in a more than 40% decline in exports. Consequently, prices surged by 557% over the past thirteen months.
Tungsten is a critical metal used in armor manufacturing, aerospace components, and electronics. The US does not produce any tungsten domestically since its last mine closed in 2015, leaving the country fully dependent on imports. European industries also rely heavily on imports, making them vulnerable to shifts in the global market.
China’s export restrictions are both political and economic tools that pressure other countries to seek alternative suppliers and invest in their own mining operations. However, replacing Chinese tungsten quickly on the market is extremely difficult, posing risks for US and EU security programs.
China’s dominance in the tungsten market is due to large-scale mining and processing, chiefly in Jiangxi Province, accounting for over 80% of the world's tungsten reserves. The Chinese government tightens export controls to maximize its strategic leverage and financial gains.
Given the supply constraints and soaring prices, the US and European states face the challenge of developing local resources or securing new suppliers. Market trends suggest tungsten shortages may persist for years, significantly impacting the defense industry.
This situation highlights the importance of diversifying sources of strategic materials and strategic resource security planning amid growing geopolitical tensions.
