U.S. Eyes South Korean Mine to Break China’s Grip on Critical Metal Tungsten
The U.S. government is stepping up its efforts to secure critical minerals, including tungsten, a key component in weapons, semiconductors, and industrial machinery. With China currently dominating over 80% of the global tungsten supply chain, the U.S. has turned its attention to the Sangdong Mine in South Korea, which is poised to resume operations this year. While the U.S. has not commercially mined tungsten since 2015, the Sangdong Mine could potentially generate 50% of the remaining global supply, making it a critical piece in the puzzle to break China’s dominance.
Key Takeaways
- U.S. government researchers visited the Sangdong Mine in South Korea to assess its potential in boosting global tungsten supply.
- The Sangdong Mine, owned by a subsidiary of Almonty Industries, is set to resume operations this year.
- China’s dominance in the tungsten market raises concerns about potential export restrictions and supply disruptions.
- The U.S. is actively exploring alternative sources of critical minerals to reduce its reliance on China.
- The Biden administration has identified critical minerals as a national security priority and has imposed tariffs on tungsten and other vital metals.
The Growing Importance of Tungsten
The demand for tungsten is expected to increase significantly in the coming years, driven by the growth of the electronics, aerospace, and defense industries. However, the global tungsten market is highly concentrated, with China holding a stranglehold on supply. This puts the U.S., and indeed the entire world, in a precarious position, as China has the potential to wield its dominance as leverage in international affairs.
Recent moves by China to restrict exports of antimony, another critical metal, have sparked alarm in the tungsten market. Market analysts fear that similar restrictions could be imposed on tungsten, potentially leading to price hikes and supply disruptions.
The U.S. Response
The U.S. is taking a multi-pronged approach to address its dependence on China for critical minerals.
Domestic Mining and Processing
The U.S. Energy Department has already awarded $151 million in grants to boost domestic mining and processing of critical minerals. The government is also actively working to simplify permitting processes and provide incentives to encourage the development of new mines.
International Partnerships
The U.S. is actively seeking to strengthen partnerships with countries like Canada and Australia to secure access to critical mineral resources. The U.S. government has also taken steps to promote responsible sourcing practices and reduce the risk of conflict minerals being used in supply chains.
Strategic Stockpiling
The U.S. government maintains a strategic stockpile of critical minerals, including tungsten, which can be used to buffer against supply disruptions. This stockpile is regularly reviewed and updated, and the U.S. is investing in expanding its capacity to store and manage these critical resources.
The Future of Tungsten
The global scramble for critical minerals is set to intensify in the coming years. The U.S. is determined to reduce its reliance on China, but the task will be challenging. Reopening mines, building new facilities, and developing responsible sourcing practices will require significant investment and effort. The Sangdong Mine could be a critical asset in the effort to reshape the global tungsten market, but it is just one piece of a larger puzzle. The U.S. must continue to work with its allies and explore new technologies to secure access to essential resources and maintain its economic and national security.
