U.S. Funds Global Tungsten Network as China Supply Risk Grows

The U.S. is using government finance, defense funding, and stockpiling to rebuild tungsten supply chains and reduce reliance on China, according to Fastmarkets. Tungsten is used in armor-piercing munitions, aerospace alloys, and advanced manufacturing, but U.S. domestic mining has faded over several decades.

Washington’s strategy combines support from the Export-Import Bank of the United States (EXIM), the U.S. International Development Finance Corporation (DFC), and the Department of Defense (DoD). The effort comes as China increases export restrictions and the U.S. prepares to restrict materials from adversaries in defense contracting.

Overseas, EXIM and DFC are backing tungsten projects outside China. Cove Capital’s Northern Katpar and Upper Kairakty projects in Kazakhstan have received major U.S. support, with EXIM committing about $900 million in debt financing and DFC confirming $700 million.

Cove Capital chairman Pini Althaus told Fastmarkets the U.S. role goes beyond funding. “We have been granted official US trade advocacy status by the government to support our efforts in bidding for and acquiring the project,” he said.

EXIM has also issued letters of interest for allied projects, including a possible $34 million, 10-year facility for EQ Resources’ Mt Carbine tungsten mine in Australia and up to $95 million for Tungsten West’s Hemerdon tungsten and tin mine in Devon, UK.

In Rwanda, DFC provided about $3.9 million in technical assistance to Trinity Metals for ESG programs at the Nyakabingo mine. Trinity Metals later signed offtake arrangements with U.S. processor Global Tungsten & Powders, with first shipments of tungsten concentrate reaching Pennsylvania in September 2025.

Guardian chief executive Oliver Friesen said U.S. agencies are now “speaking to each other” to move approvals forward more quickly. Andreas Keller, chief executive of Scandinavian Steel AB, also told Fastmarkets that licensing has picked up as capital returns to mining. “You get the license much quicker; you can open a mine,” Keller said.

Article Source: Fastmarkets

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