We are all aware of the volatile commodities landscape. Gold, silver, copper, and rare earths have dominated the headlines for the better part of the last year. But is it time to explore tungsten, and is there value in allocating exposure to it in portfolios?
Tungsten has long been viewed as a standard, highly specialised, industrial metal. However, it has rapidly transitioned into a cornerstone of national security and advanced technology manufacturing.
The metal is a top-priority, high-impact critical mineral for the United States, essential predominantly for defense and aerospace. Given that there are currently no major active producing tungsten mines in the U.S., it is easy to see why tungsten is viewed as a national security asset.
For market watchers, the narrative is evolving from a cyclical trade into a long-term macro thematic. Driven by extreme supply-demand imbalances, geopolitical fracturing, and a historic lack of Western investment, the global tungsten market entered a severe deficit in 2026, seeing prices explode by roughly 500% over the last 12 months.
Supply Disruptions and the China Factor
While high-tech demand is surging, the supply side has hit an unprecedented bottleneck. Much like the majority of critical commodities, the global supply chain currently has a singular point of failure: China controls approximately 83% of all global mine production and 52% of global reserves.
However, China's role in the market is changing drastically. Speaking recently on Tungco's 'Cliff’s Notes' podcast, William Parry-Jones, founder of Wolfram Advisory, highlighted a startling geopolitical dynamic. Following strict export controls implemented via Beijing's "Catalogue of Dual-Use Items," Chinese tungsten exports dropped by roughly 30%. Concurrently, China saw a 30% to 40% increase in its own tungsten imports.
Parry-Jones noted that China is battling severe internal headwinds. Many historical Chinese operations are reaching their end-of-life, forcing a transition away from cheap, byproduct tungsten toward higher-cost primary mining. Coupled with increasingly strict environmental inspections, China is actively prioritizing its domestic high-tech industries over global export markets.
The Price Response: When Supply Lags and Demand Surges
Decades of underinvestment outside of China have resulted in a historic lack of tier-one discoveries and immense lead times to bring new mines online.
Tungsten's price re-rating has reflected this reality. Ammonium Paratungstate (APT)—the global price benchmark—has surged roughly 500% over the last year. Breaking out of its historical US$300 per metric ton unit (mtu) average, it traded at approximately US$1,775 per mtu in early 2026.
This completely rewrites tungsten mining economics. Previous discoveries are now being re-targeted, capital investment has become relevant again, and these long-dormant projects are beginning to capture headlines.
The ASX Watchlist: Companies to Watch
With the global supply chain desperately seeking new, conflict-free primary sources in tier-one jurisdictions, the Australian market is well worth consideration. For investors looking to track this macroeconomic shift, a handful of ASX-listed small caps are providing direct exposure to the tungsten thematic.
EQ Resources (ASX: EQR)
Status: Mid-Tier Producer / Expanding Operations
The Opportunity: EQR stands out as an established, active producer. Having successfully revitalized the historic Mt Carbine asset in Queensland, the company is capturing the significant APT price rally in real-time, bypassing the decade-long lead times typically faced by explorers. Furthermore, their strategic acquisition of the Saloro operation in Spain cements their status as a critical, multi-jurisdictional supplier for European and U.S. markets that are actively diversifying away from Asian supply chains.
American Tungsten & Antimony Ltd (ASX: AT4)
Status: Advanced Exploration / Development
The Opportunity: AT4 is aggressively positioning itself to capture the immense upside of the current development wave. Operating directly in the U.S. with its Dutch Mountain and Tennessee Mountain projects, AT4 is advancing a strategy to become a vertically integrated domestic supplier. In a market where the U.S. Defense Logistics Agency is actively looking to stockpile critical minerals, AT4’s strategic footprint offers highly leveraged exposure to this thematic.
The Agile Explorers: TGN, LRV, IR1, and KOB
The rising tide of the tungsten deficit is also elevating a broader basket of explorers holding prospective tenure, providing early-stage discovery watchlists for investors:
Tungsten Mining NL (ASX: TGN): Holds a substantial legacy resource inventory across Australia. The new US$1,700+ APT price environment fundamentally shifts the underlying economics of their historically dormant projects.
Larvotto Resources (ASX: LRV): Known for a dynamic critical minerals portfolio, Larvotto offers a compelling platform to capitalize on the widening structural deficits facing technology and defense metals.
Iron Road Ltd (ASX: IR1) & Koba Resources (ASX: KOB): Agile explorers testing highly prospective ground. As major mining houses and government entities look to fund the next generation of critical mineral deposits, companies with active drilling campaigns are prime candidates for market attention following successful assays.
Ultimately, the global tungsten industry is undergoing its most fundamental transformation in decades. As governments intervene to secure supply chains and spot prices hold at record highs, the sector offers a fascinating macro study in resource security.
