The Global Rush for 300 Billion in “Industrial Teeth”: Why the West Is Panicking, While China Remains Unshaken?
Hello everyone, I'm your financial journalist. Today, we're talking about a metal that might sound a bit obscure, but it's causing a huge stir in the international markets—tungsten.
If you follow the commodities market, you've probably seen the fluctuations in gold, silver, and copper recently. But you might not have noticed that a metal has seen its price soar by 310% in just 7 months, far outpacing gold and oil. It's not gold or copper; it's tungsten, often referred to as the “industrial tooth.”
What's even more interesting is that the heart of this price surge is located in a place you might be familiar with—Jiangxi.
Today, we'll break down the logic behind this news in simple terms and understand why Western countries are in a frantic search for tungsten, while China holds the power to set its price.
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1. Price Out of Control: From “Cheap” to “Exorbitant,” Overseas Buyers Panic Buying
First, let's clarify what's happening in the market.
The news mentions a key figure: in January 2026, ammonium paratungstate (APT), a major intermediate product of tungsten, was selling for around $900 per ton in the European market. By early September, the price had skyrocketed to $3,000 per ton.
What does that mean?
It's like going to the supermarket and finding eggs that cost $3 per pound at the beginning of the year, but suddenly $10 per pound by the end, with the shelves still empty.
Why such a sharp increase? Because it’s become unavailable to buy. China holds 70% of the world's tungsten reserves and has the most complete industrial chain. Tungsten was once considered abundant and easily accessible. But now the situation has changed:
1. China has restricted exports: China has tightened its tungsten export controls, significantly reducing the legal export volume.
2. Lack of mines abroad: Other countries have very few tungsten reserves, and mining them is difficult and costly.
As a result, factories abroad—those that produce missiles, chips, and photovoltaic panels—realized that without Chinese tungsten, their production lines would come to a halt. To keep operating, they had to buy at any cost, driving prices sky-high.
In short: This isn't just a simple supply-demand imbalance; it's a panic caused by a broken supply chain. Overseas buyers realized they can't obtain enough tungsten without going through China.
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2. Why Tungsten? How Important Is It?
Many might ask, “It's just a metal; why can't we find a substitute?”
That's where tungsten’s unique properties come into play. Tungsten is called the “industrial tooth” because of its extraordinary physical properties:
- Highest melting point: It has the highest melting point of all metals (over 3,400 degrees Celsius), making it extremely heat-resistant.
- High hardness: It's so hard that even hydraulic presses can't crush it; it can only be deformed.
- High density and wear resistance: These properties make it ideal for cutting tools and drills.
Where is it used?
- Electric vehicles: An electric car uses about 2 kilograms of tungsten.
- Photovoltaics: The wires in solar cells are often made of tungsten because it's thin and strong.
- Defense and military: Tungsten is essential for armor-piercing bullets, missile components, and satellites.
- Semiconductors: Tungsten is needed in the chip manufacturing process.
The bottom line: Without tungsten, a country's technology and defense industries would be paralyzed. No other metal can replace tungsten in extreme temperature and hardness applications.
Therefore, tungsten is not just an industrial material; it's a strategic resource. Whoever controls tungsten controls the heart of modern industry and defense.
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3. The West’s Dilemma: Money, but No Technology
Faced with soaring tungsten prices, countries like the United States, the UK, the EU, and Japan are anxious. They're spending money to mine new deposits and build reserves in an attempt to reduce their dependence on China. However, the news reveals a harsh reality: the West can't keep up.
1. The US: “Knowledge Lost, Industry from Scratch**
The US is in a difficult position. As the news quotes Barclays Bank, “There’s no relevant knowledge, no experts, no books. This knowledge was lost in the 1990s.”
- Zero production: By 2025, US domestic tungsten mining had ceased.
- Rebuilding is difficult: The US has launched a $12 billion program to build strategic mineral reserves and invested in Kazakhstan’s tungsten mines, with the Department of Defense also providing support. But having the ore doesn’t mean having the entire industrial chain.
- Lack of infrastructure: China has a complete chain from mining to processing and application, while the US only has a few companies that can process tungsten into powder. It’s like having flour but no bakeries, ovens, or delivery systems to turn it into bread.
2. The UK and EU: Late Start, Small Scale
The UK invested £71 million to restart an old mine with an annual output of 3,000 tons of tungsten powder, which is a drop in the bucket compared to China’s capacity.
The EU is also building strategic reserves but faces the same issue of having mines without the necessary industrial chain.
3. The Time Gap: Barclays Bank points out that the West’s hope to reverse the situation with subsidies and new mines is naive. Rebuilding a thirty-year-old industrial infrastructure isn’t just about mapping a mine; it requires a complete ecosystem, skilled workers, and years of experience. Money and time won’t solve this problem.
In short: The West is trying to catch up, but China has already “graduated.” By 2030, the dominance of the tungsten industry will still be in China’s hands.
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4. The Rise of Dayu, Jiangxi: From Mining to a 300 Billion Industry
The news highlights the remarkable transformation of Dayu County, Jiangxi:
1. Historical Background: In 1907, German missionaries discovered tungsten mines in Dayu and secretly transported the ore back to Germany. After the founding of the People’s Republic of China, Dayu became the “world capital of tungsten,” with 106 mines and 1.17 million tons of reserves.
2. Past Challenges: Dayu mainly focused on mining and selling raw materials, which meant low profits and little influence. The resources were depleting quickly.
3. Decisive Transformation: Dayu realized that selling raw materials was insufficient and needed to move towards deep processing. They built a complete industrial chain, from mining to fine-tuning, producing various tungsten products, and now have over 100 tungsten-related companies, with a total revenue of 10.7 billion yuan in the first half of 2026, a 199.3% increase!
4. Value Reevaluation: At current prices, Dayu’s 488,000 tons of tungsten reserves are worth over 300 billion yuan. This is about more than just selling ore; it’s about selling high-tech materials and the added value of the entire industrial chain.
In short: China (especially Jiangxi) has transformed from a resource-rich country to an industrial powerhouse. It’s no longer just selling raw materials; it’s selling technology, standards, and an entire ecosystem.
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5. China’s Control: Pricing Power
Finally, let’s look at how China has taken control of the situation:
1. Production Control: In 2026, China reduced its domestic tungsten mining quota by 8% compared to 2025, to 115,000 tons per year, a 14% decrease over two years.
What does this mean? China is intentionally limiting supply to protect its resources and raising export barriers.
2. Export Regulations: Only 15 companies are authorized to export tungsten products, fewer than in previous years. From January to July 2026, China’s APT exports totaled just 22.8 tons, a 88.8% drop.
Strict Enforcement: China is cracking down on illegal exports, false reporting, and even criminalizing actions that damage mineral resources.
3. The Result: Pricing Power: When international prices soared to $3,000 per ton, domestic prices remained relatively stable, creating a three-fold price difference. This difference reflects China’s pricing power.**
Westerners can buy tungsten, but at market prices and in limited quantities. Building their own industrial chains takes time, technology, and experience.
In short: China has firmly grasped the tungsten industry through production control, quality improvement, and strict regulations. The West’s anxiety stems from realizing they have lost the power to choose; they can only buy.
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Conclusion
This news highlights a crucial lesson:
In resource-based industries, having resources is just the first step; a complete industrial chain and technological expertise are the true keys to competitiveness.
- For consumers: Tungsten may seem distant from daily life, but it’s essential for electric cars, photovoltaic panels, and national defense.
- For investors: Paying attention to leading companies in the tungsten industry, especially those with deep processing capabilities and core technologies, could benefit from the current resource revaluation and the shift towards domestic production.
- For countries: This is a reflection of China’s transformation from a “world factory” to a “world leader in technology.” China is no longer just a supplier of cheap labor; it’s a controller of key strategic resources.
The West is still catching up, while China is already in the driver’s seat. This “tungsten scramble” is actually a battle for industrial sovereignty.