This hard, rare metal has quietly become one of the most strategically significant resources in the US government's assessment of supply chain vulnerabilities. Understanding why tungsten tops the US priority list of critical minerals provides valuable insight for investors seeking opportunities in an increasingly complex global resource landscape.
The US Critical Minerals Strategy
In 2022, the US Geological Survey (USGS) published America's definitive list of 50 critical minerals that serve essential functions in the nation's economy and defense infrastructure. This comprehensive assessment evaluated minerals based on their importance to vital industries, vulnerability to supply disruption, and potential impact of shortages on national interests.
Tungsten earned a position at the very top of this list, reflecting both its irreplaceable properties and the precarious nature of its supply chain. This designation wasn't merely academic—it triggered a cascade of policy initiatives designed to address the vulnerability:
In April 2025, a Presidential Executive Order directed federal agencies to conduct comprehensive assessments of critical minerals supply chains, with particular emphasis on those deemed most vulnerable to geopolitical risk and disruption. The order specifically highlighted tungsten as a priority resource requiring immediate attention.
The Department of Defense allocated over $100 million to strengthen domestic tungsten processing capabilities, recognizing that even with raw material access, the US lacks sufficient capacity to convert ore into usable forms for advanced manufacturing.
Congress approved expanded funding for the Defense Production Act Title III program, which provides financial incentives for companies developing domestic sources of critical minerals, with tungsten projects receiving priority consideration.
These initiatives reflect a growing recognition that supply chain security for critical minerals is not merely an economic concern but a fundamental component of national security planning. As the Department of Defense noted in a recent statement: "Access to reliable sources of critical minerals like tungsten is essential to maintaining America's military readiness and technological edge."
Tungsten: The "Hard Metal" with Irreplaceable Properties
To understand tungsten's strategic importance, one must first appreciate its exceptional physical and chemical properties. With the highest melting point of any metal (3,422°C), remarkable density (19.3 g/cm³, similar to gold), and the ability to maintain hardness at extreme temperatures, tungsten possesses a combination of characteristics that make it irreplaceable in numerous applications.
These properties translate into critical applications across sectors vital to national security:
In military systems, tungsten is essential for armor-piercing ammunition, missile components, and radiation shielding. Its density and hardness make it ideal for kinetic energy penetrators that can defeat advanced armor systems. As a defense analyst recently noted, "There is simply no viable substitute for tungsten in many weapons systems that form the backbone of US military capabilities."
The aerospace industry relies on tungsten for high-temperature components in aircraft engines, counterweights, and specialized alloys. As aircraft designs push the boundaries of performance, the demand for materials that can withstand extreme conditions continues to grow.
In cutting-edge electronics, particularly semiconductor manufacturing, tungsten's heat resistance and electrical properties make it essential for creating the microscopic connections in advanced chips. As one industry expert explained, "The miniaturization of electronics that powers everything from smartphones to missile guidance systems depends on tungsten's unique properties."
Beyond these applications, tungsten plays a vital role in creating super-strong tools used in manufacturing processes across the industrial base. From drill bits that are harder than rock to cutting tools used in precision machining, tungsten carbide has become what many consider "the dream metal for demanding modern world tech applications."
This combination of irreplaceable properties and critical applications explains why tungsten has been designated as a mineral of highest concern in assessments of supply chain security. Unlike some resources that can be substituted with alternatives, tungsten's unique characteristics make it essentially irreplaceable in many of its most important applications.
The Geopolitical Chess Game Over Critical Minerals
The strategic importance of tungsten has made it a focal point in the increasingly complex geopolitical competition between major powers. As nations jockey for resource advantage, tungsten supply has become both a vulnerability and a leverage point in international relations.
At the center of this dynamic is China, which currently controls 65 to 90% of the global tungsten supply. This dominance gives Beijing significant leverage over global supply chains, particularly as tensions with Western nations have escalated. The recent China export ban on tungsten and other critical minerals represents a calculated move in this ongoing strategic competition.
The timing of the export ban announcement—shortly after a change in US administration—suggests a deliberate attempt to test American resolve and response capabilities. By restricting access to resources vital for defense and high-technology applications, China has signaled its willingness to use resource leverage as a geopolitical tool.
Russia's position in the global tungsten market adds another layer of complexity to this situation. As the world's second-largest producer, Russia has historically served as an alternative source to Chinese material. However, current geopolitical tensions and sanctions regimes have complicated access to Russian resources, further constraining global supply options.
In response to these challenges, new international partnerships are emerging. The United States has strengthened cooperation with allies including Canada, Australia, and European nations to develop alternative supply chains for critical minerals. These "mineral security alliances" represent a new front in the competition for resource security, with tungsten as a priority focus.
For investors, these geopolitical dynamics create both risks and opportunities. Companies positioned to develop domestic supply chains for tungsten in politically stable jurisdictions stand to benefit from government support and growing demand. However, the volatile nature of international relations introduces uncertainty that must be carefully factored into investment decisions.
Supply Chain Security Initiatives
Recognizing the strategic vulnerability created by dependence on foreign tungsten sources, the United States has launched a multi-faceted approach to strengthening supply chain security for this critical mineral. These initiatives create a supportive environment for companies developing domestic resources, with implications for investors in the mining investment space.
Public-private partnerships have emerged as a cornerstone of this strategy. The Department of Defense has established cooperative agreements with several junior mining companies to accelerate the development of domestic tungsten resources. These arrangements typically include funding support, technical assistance, and commitments to purchase production, reducing the market risk that often challenges new mining ventures.
The Defense Production Act (DPA) has been increasingly applied to critical minerals projects, with tungsten receiving priority designation. This powerful legal framework allows the government to provide financial incentives, expedite permitting processes, and even mandate production of materials deemed essential to national defense. For companies developing tungsten resources, DPA designation can significantly reduce development timelines and costs.
Strategic stockpiling has also returned as a policy tool after decades of reduced emphasis. The National Defense Stockpile, managed by the Defense Logistics Agency, has received increased funding to rebuild reserves of critical minerals including tungsten. This creates a guaranteed market for new production, further reducing the risk profile for companies developing domestic resources.
International cooperation complements these domestic initiatives. The United States has strengthened partnerships with allies including Canada, Australia, and European nations to develop resilient supply chains for critical minerals. These arrangements create opportunities for companies operating in allied nations to participate in supplying the US market, expanding the potential investment landscape beyond purely domestic operations.
Investment Implications of Tungsten's Critical Status
The convergence of tungsten's strategic importance and government support for domestic production creates a unique investment landscape. For investors interested in the critical minerals sector, understanding how these factors affect company valuations and development timelines is essential to identifying opportunities with favorable risk-reward profiles.
Government support provides significant advantages to companies developing domestic tungsten resources. Beyond direct funding, this support often includes:
- Expedited permitting processes that reduce development timelines
- Technical assistance from national laboratories and research institutions
- Preferential procurement policies that guarantee market access
- Tax incentives that improve project economics
These advantages are particularly significant for junior mining stocks, which typically face challenges in securing funding and navigating regulatory requirements. Government support can transform marginally economic projects into compelling investment opportunities by reducing both costs and risks.
Among the companies positioned to benefit from this supportive environment, American Tungsten Corp. (CSE: TUNG, OTC: DEMRF) stands out for its focus on near-term production potential. The company's flagship IMA Tungsten Mine project in Idaho represents one of the most advanced tungsten development opportunities in the United States.
What makes this project particularly interesting from an investment perspective is its status as a past-producing mine with existing infrastructure and permits. Rather than starting from scratch—a process that can take a decade or more for new mining projects—American Tungsten Corp. is reviving a proven resource with a clear path to production.
The company's strategic advantages include:
- A defined resource with high-grade tungsten mineralization
- Existing permits that significantly reduce development timelines
- Proximity to transportation infrastructure and potential customers
- A management team with extensive experience in critical minerals development
Long-term demand projections for tungsten remain robust, driven by both traditional applications and emerging technologies. Defense requirements continue to grow as systems become more sophisticated, while the transition to advanced manufacturing and renewable energy creates new applications for tungsten's unique properties.
Price forecasts reflect this strong demand outlook, with analysts projecting sustained premium pricing for tungsten produced in secure jurisdictions. This "security premium" recognizes the value that manufacturers and defense contractors place on reliable access to essential materials, creating favorable economics for domestic producers.
Conclusion
The intersection of national security concerns and critical minerals supply has created a compelling investment narrative in the tungsten sector. As the United States works to reduce dependence on foreign sources and strengthen domestic supply chains, companies positioned to meet this need stand to benefit from both government support and market demand.
For investors interested in this sector, the key considerations include:
- Project development timelines and proximity to production
- Management experience in navigating the unique requirements of critical minerals development
- Capital requirements and funding strategies
- Relationships with government agencies and potential customers
American Tungsten Corp. (CSE: TUNG, OTC: DEMRF) represents an interesting case study in how these factors can align to create investment opportunity. By focusing on reviving domestic production at the IMA Tungsten Mine, the company addresses a critical national need while potentially delivering value to shareholders.
The broader lesson for resource investing in today's complex geopolitical environment is the importance of understanding the strategic context of mineral resources. Beyond traditional metrics of grade and tonnage, factors such as jurisdiction, security of supply, and alignment with national priorities increasingly influence project economics and company valuations.
As global competition for critical minerals intensifies, investors who recognize these dynamics may find opportunities in resources that serve essential functions in an increasingly technology-dependent and security-conscious world. In this landscape, tungsten—the hard metal with irreplaceable properties—stands out as a resource whose strategic importance transcends its relative obscurity in mainstream investment discussions.
This article is for informational purposes only and should not be considered investment advice. Always conduct your own due diligence before making any investment decisions.
Discover more about critical minerals investment opportunities
