- Tungsten prices surged by more than 600%
- Growing demand is colliding with structural supply constraints
- Major Western economies identified tungsten as critical to their future
- The result is a race to secure new sources of supply
Tungsten is widely known as one of the toughest elements available, and it has recently become one of the hardest critical minerals to obtain.
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That impact on availability saw prices for tungsten climb by as much as 622% between January 2025 and April 2026 and while it has slipped back since that record high, European ferro-tungsten remained up roughly 47% to 60% year-to-date by mid-2026.
Tungsten is officially classified as a critical mineral by major economies including Australia, the United States and the European Union. It is considered essential in many industrial applications, particularly cemented tungsten carbides, whose hardness is close to that of diamond, used for cutting tools and in wear-resistant materials.
Analysts believe the tungsten market will be influenced by new and emerging technologies, including renewable energy generation, storage and transmission.
That demand comes as the global tungsten market is experiencing a severe structural supply deficit and surging prices driven by Chinese export curbs and rising defense demand.
The global tungsten market is currently valued at approximately US$6.66 billion and is projected to reach US$9.62 billion by 2030, reflecting a compound annual growth rate (CAGR) of about 9.6%.
Australia, as the holder of the world’s second-largest tungsten resources and with a mining history associated with the critical mineral tracing back more than 130 years, has a number of ASX-listed companies as front-runners in the rush to bring more of the critical material to the market.
For example, Tungsten Mining NL (ASX: TGN) continues to ramp up activity at its world-class Mt Mulgine project in Western Australia and the emerging Watershed asset in Queensland.
A recently completed pre-feasibility study on Mt Mulgine confirmed compelling technical and economic fundamentals at a time of tightening global tungsten supply.
The study results, unveiled in early September, revealed that it has the potential to be the world’s largest tungsten operation.
On the opposite side of the nation Tungsten Mining has achieved a significant milestone with its Watershed tungsten project in Far North Queensland now fully permitted for mining and production operations.
The company is ramping up activities on site, with the receipt of the approvals following on from the the positive June 2026 Watershed Preliminary Economic Evaluation (PEE), which demonstrated a pre-tax NPV8 of $1.31 billion and a pre-tax IRR of 198%.
Internationally, the United States is actively funding domestic and international tungsten projects through government-backed financing Defense Production Act awards and export-import loans to reduce reliance on Chinese supply chains.
Key US funding initiatives have focused on a range of domestic projects, with a number of Australian companies lining up to support North American demand.
The Department of Energy (DOE) recently held discussions with ASX-listed American Tungsten and Antimony (ASX: AT4) for up to US$25 million in funding to support the Tennessee Mountain project in Nevada.
Another ASX-listed company is targeting the US market with potential tungsten riches is Resolution Minerals (ASX: RML)
Resolution Minerals has completed a dual-listing on the NASDAQ to add impetus to its potential as future American supplier of critical metals for the defense needs of the US and its allies and meetings with potential US supporters,
“The commencement of trading on Nasdaq is a very important strategic milestone for Resolution Minerals and the natural progression of our growing presence in the United States.” MD, Ari Zaetz, said.
“Our focus remains firmly on advancing the Horse Heaven project in Idaho. At Golden Gate, we are undertaking our largest drilling program to date as we work to define the scale and extent of the emerging gold and tungsten system, while Antimony Ridge provides a second development opportunity focused on high-grade antimony.”
Meanwhile, up-and-comer QEM (ASX: QEM) is grabbing attention with its plans to fast-track exploration at the Garden Valley project in central-west Idaho, USA.
The company recently completed a detailed review and compilation of available historical geological, mining and exploration information to identify early exploration targets and activities.
The move followed the acquisition of all shares in Freshwater Metals, the owner of two critical minerals exploration projects: Big It and Garden Valley projects.
Big It is a past producer of tungsten, and is also prospective for antimony and gold, while the Garden Valley Project hosts the Vaught-Peck prospect which is prospective for niobium, tantalum and other rare earth elements (REE).
Garden Valley represents a highly prospective US rare-metal pegmatite project with exceptional coarse rare- metal mineralisation documented in historical government records and a perfect partner with the proven Big It asset.
Elsewhere, EQ Resources (ASX: EQR) is a global tungsten producer with mining activities in Australia and Spain.
The company recently reported consolidated production of 19,068 mtu for the month, representing an increase of 34% from July 2026 and the second-highest monthly production on record.
It also reported consolidated sales volumes totalled 17,246 mtu, generating a second month in a row of record revenue totalling A$55.1 million, with an average realised price of US$2,269 per mtu.
With a global recognition as a supplier of tungsten and expertise in mining the critical mineral, Australia’s position as a powerhouse in the growth of the specialist commodity is one to watch and follow.
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