Key facts
- Global tungsten prices have surged significantly over the past year due to Chinese export controls and production constraints.
- Tungsten is now considered a strategic commodity crucial for defense, advanced manufacturing, and emerging technologies like AI and electric vehicles.
- Australian tungsten producers, led by EQ Resources, are capitalizing on the supply crunch to expand operations and secure market share.
- EQ Resources, with mines in Australia and Spain, is experiencing a sharp increase in inquiries and is focused on boosting production.
- The global supply of tungsten is heavily concentrated in China, with the rest of the world facing significant shortages.
Global tungsten markets are experiencing significant shifts driven by China's imposition of export controls on the metal, creating a rare opportunity for Australian producers. Tungsten, once a niche industrial input, has rapidly evolved into a strategically sensitive material critical for defense, advanced manufacturing, and emerging technologies such as artificial intelligence and electric vehicles.
Global tungsten prices have surged dramatically over the past year, climbing from around $300 per metric tonne unit (mtu) in early 2025 to approximately $2800–3150/mtu by March 2026. This price increase is largely attributed to tighter export controls and production constraints in China, which has historically dominated global supply, accounting for 85% of production. These supply-side pressures, coupled with geopolitical tensions and drawdowns of strategic defense stockpiles, are creating vulnerabilities in global value chains and prompting a renewed focus on diversification outside of China.
Australian producers are poised to capitalize on this evolving landscape. EQ Resources, with producing mines in Queensland, Australia, and Spain, is actively working to increase its output to meet the growing global shortage. Managing Director Craig Bradshaw noted that the company has seen a sharp uptick in inquiries, with potential buyers urgently seeking tungsten and even requesting quotes for air freight due to the critical supply shortfall. Bradshaw highlighted tungsten's essential role in semiconductor manufacturing for AI, its use in cutting silicon wafers for solar panels, and its incorporation into EV batteries to improve performance and longevity.
Other Australian companies are also advancing their tungsten projects. Tungsten Mining is undertaking a significant drilling program at its Watershed project, with its chair Gary Lyons emphasizing the robust tungsten prices and the value of secure supply. Larvotto Resources has reported high-grade tungsten results from its Metz Mining Centre drilling. Capital markets are also reflecting the sector's renewed confidence, with companies like Tungsten Mining securing substantial funding to support project development and expansion.