China, Tungsten and a Supply Shock in Metal Critical for War that Will Last Far Beyond Iran Conflict – by Kevin Williams (CNBC.com – June 4 2026)

Key Takeaways

• U.S. imports about 80% of tungsten from China.
• War demand lifts tungsten prices roughly 30% year‑over‑year.
• Tungsten critical for armor‑piercing ammo, aerospace, medical devices.
• Pentagon launches program to develop domestic tungsten mining.
• Congress considers strategic tungsten reserve for national security.

Pulse Analysis

Tungsten, the world’s densest metal, underpins everything from high‑performance drill bits to the penetrators that give modern artillery its lethal edge. Its unique hardness and high melting point make it irreplaceable in defense, aerospace, and medical equipment, yet the United States sources the bulk of the material from Chinese mines and processing plants. This dependence creates a strategic vulnerability, especially as China tightens export controls in response to geopolitical pressures.

The twin wars in the Middle East and Ukraine have amplified that vulnerability. U.S. forces have expended unprecedented quantities of tungsten‑based munitions, while allies ship additional rounds to Ukraine, driving global demand beyond pre‑conflict levels. Prices have surged roughly 30% compared with the previous year, and inventories at major manufacturers are dwindling. Even a reopening of the Strait of Hormuz would not fully alleviate the gap, because the underlying consumption curve remains steep and alternative suppliers are scarce.

In response, the Pentagon has launched a domestic tungsten initiative, funding exploration of U.S. deposits in Nevada and Idaho and incentivizing private‑sector partnerships. Simultaneously, Congress is debating a strategic tungsten reserve to hedge against future supply shocks, mirroring stockpiling practices for rare earths and critical minerals. These moves aim to blunt China’s leverage, stabilize prices for industrial users, and ensure that the United States retains the material edge required for both current conflicts and future defense needs.